The interest rate payable annually for each year on the "gilt rate plus bond" would be reset effective February 1 each year, starting from February 1, 2001, at 0.75 per cent over the average yield on gilts of remaining maturity of one year.

The interest for the period from the deemed date of allotment to January 31, 2001 will be 11 per cent. The bond offers a bonus of five per cent of the face value of Rs 5,000 at the end of maturity period of five years and it includes early redemption options at each interest reset date.

The other bonds on offer at tax saving bond, encash bond, regular income bond and money multiplier bond.

According to ICICI, the safety bonds-November 99 issue provides the investors anotheropportunity to save at market-related rates and offers various redemption periods and options to choose from. The investor can opt for regular monthly income option or lock in for 22 years and 9 months with non-intermediate coupon payments.

Encash bond offers liquidity with returns whereas tax savings bond can help the investor plan his taxes optimally. ``Now with the introduction of gilt rate plus bond, investors have an opportunity to earn higher interest rates in the case of any future rise in interest rates,'' it said.