India's Post Offices and Investments in a Monthly Income Scheme

The work load of the post office have gone down considerably during the recent past in almost all the countries of the world including India. That is the reason why many of the countries have started giving post office the additional work load of managing the investments on behalf of the governments. India is one such country where the investments of an individual in the post offices can prove to be very profitable. I will cover the main aspects of the Monthly Income Scheme of investment that is operated through all the post offices in India. If you are a retired person and look forward to earning of steady, reliable, and the fixed income every month, then this is the ideal scheme for you. All the Indian citizens can make investment in this scheme. Hence, all the residents of the USA having green card and still are Indian citizens can make investment in this scheme.

The interest rate of 8% is paid every month in this scheme. You need to open an account with the post office by depositing the amount you want to invest. The deposit can be made either in cash or by check at the concerned post office. There is no minimum limit of the investment in this scheme but there is a maximum limit of Rs.4.5 lakhs per person. If you want to make investments in the joint name with your spouse or relative, the maximum limit would be Rs.9 lakhs between the two of them. The investment of Rs.9 lakhs (Rs.900000) would fetch you the monthly interest of Rs.6000 every month. You will be given a passbook for the account. You will have to go to the post office for withdrawing the money every month and present your passbook with the withdrawal slip duly filled in. It is not necessary to withdraw the money every month in case you do not need them. You can open a savings account with the same post office and the interest credited in to your account every month would be deposited in this savings account and the individual will be paid 3% additional interest on the amount deposited in your savings account. You may withdraw the entire amount deposited in your account when you visit India after a year or so. By this way, a handsome lump sum amount of money would be available to you for spending while visiting India and you will need to carry those many dollars less. There is a nomination facility also available in this scheme. The nomination can also be made in the name of minor with an alternate adult nominee who will take care of investment till the real nominee reaches the age of 18 years. If you are retired recently, have a large sum available for the investment, and if you need the interest income in your account for expenditure, this is the most ideal scheme for investment in India.

This scheme is extremely safe as it is operated by government of India. Moreover, there is no income tax deduction at source at the concerned post office on interest payment. However, the interest income earned through this scheme is fully taxable based on income tax laws of India. This scheme is operative for 6 years from the date you make investment. You can reinvest your amount after 6 years if you wish, again for further period of 6 years. The only negative aspect of this investment is you cannot withdraw the money earlier than 6 years in case of your need. This factor may be closely viewed at the time of investment. It is profitable to make this investment through government appointed agents as they would pay you the incentive of around half a percent in cash out of the total incentive of 1% given to them by Indian government. There are many agents available in each town or city and you can contact them through local post office of your area. If you need money withdrawal/renewal/reinvestment in this scheme during your absence from the country, it can also be done on the basis of the authority letters issued by you earlier either to your friend or relative or to the post office agent if he is trustworthy enough.

I myself have invested reasonably large sum in this scheme and is enjoying its benefits satisfactorily. I would strongly recommend all my Indian citizen/American residents readers to take benefits of this profitable investment scheme, which is very safe having no danger of losing your total investment. If any of my readers have any doubts on this, they are free to contact me.