In the Encash Bonds, the coupon rate paid annually to investors increases every year, starting from 11 per cent the first year, to 18 per cent in the seventh year. As compared to this, State Bank of India's interest rates are 10 per cent in the first year, that rises to 11.50 per cent in the seventh year. The Bond has a lock-in period of just one year.

ICICI's Safety Bonds also offer better returns than the only other close competitor, UTI's Monthly Income Plan (MIP). Both ICICI and UTI are offering 5 year schemes. ICICI is offering 13 per cent interest rates as against UTI's 12.5 per cent. Even if the interest is taken yearly, ICICI offers a betterreturn than UTI. ICICI's scheme ends on November 9, UTI's on November 11.

ICICI's bonds have been rated as `highest safety' by three premier credit rating agencies in the country AAA by Crisil, LAAA by ICRA and AAA by CARE.

ICICI has also provided, for the first time ever, an option for investors who wish to invest their funds in a particular state. ICICI also has various tax saving bonds, which provide tax covers under Sections 88, 54 EA and EB on the Income Tax Act. Interest rates on these bonds range from 12.5 per cent to 13 per cent -- that is, apart from the tax savings available.