IDBI Growing Interest Bond

IDBI Growing Interest Bond (2001B)

Highlights

Opening Date: February 12,2001
Closing Date : March 2, 20001
Can be encashed after the first year
IDBI has no call option

The investor may choose any of the following Options in respect of subscription for Tax Saving Bond:

Option	A
Issue Price (Rs.)	5,000/-
Maturity Value(Rs.)	5,000/-
Redemption Period	5 years
Interest(%)** (p.a)	Year 1 - 10.50 Year 2 - 10.60 Year 3 - 10.70 Year 4 - 10.75 Year 5 - 10.75
Yield (%) to early encashment (if exercised at the end of the year)	Year 1 - 10.50 Year 2 - 10.55 Year 3 - 10.59 Year 4 - 10.63 Year 5 - 10.65
Early Encashment	After 12 months from the deemed date of allotment till one month prior to the redemption date.
Interest Payable	Annually
Minimum Application	2 Bonds

**	Subject to TDS as per the then prevailing tax laws

Review

This scheme, Growing Interest Bond seems to be attractive with an option of encashing the bond after the first year. This gives the flexibility of enjoying good interest rates and encashing at any point of time after the first year.