Investment in Kisan Vikas Patra Scheme in the Postoffices of India

Most of the people who have migrated to the USA from India might have some margin for investing their money in India that they have earned during their stay in India. As almost all the investments schemes available in the USA offer very small rate of interest, it can be quiet profitable for such USA residents to invest some of their money in the suitable investment scheme in India. One of such investment scheme that can be quiet profitable and safe is Kisan Vikas Patra. This investment scheme is handled by all the post offices of India. This scheme was introduced before around 25 years by the government of India and is still in operation. Though, the interest rates have been reduced in various stages from original 12% to present 8% in these 25 years. Still, this interest rate can be said good in view of present economy. The money you deposit in this scheme gets doubled within a period of 8 years and 7 months.

Kisan Vikas Patra scheme is operated by the government of India though all their post office locations all over India. The Indian government has a vast organized network all through the country in terms of post offices. That is the reason why the investment schemes of the post offices are easily able to reach to all the common people living in all the remote corners of the country. If you invest Rs.1000 in this scheme today, you shall get Rs.2000 back on maturity after 8 years and 7 months. There is a facility to withdraw the money invested in this scheme after initial lock in period of 3 years. However, the interest payable in such early withdrawal cases shall be in the range of 6.5% to final 8% at maturity time. This scheme operates only on cumulative basis. So, if you need your interest payment in between before the three years lock in period ends, this scheme is not for you. If you have some excess money that you can afford to invest for at least three years, this scheme is the ideal for you. It would be beneficial to invest money in this scheme through the government approved vast network of the post office agents as such agents pay the investor the incentive to the tune of around half a percent in cash of the total amount invested, thus making the effective interest rate as 8.5%. These Kisan Vikas Patra are available in the denominations of Rs.100, Rs.500, Rs.1000, Rs.5000, and Rs.10000. it can be purchased in joint names also up to maximum three persons on various payment options like payable only on three signatures, or any one of signature etc.The nomination facility also is available and one can nominate any one they wish but to an adult above 18 years of age. You need to fill in the form and deposit the money at the post office selected by you near by your residence either in cash or by check and the post office would issue the certificates to you within couple of days.

One important aspect of this investment is it does not offer any sort of rebate in the income tax payable by an individual. The total interest amount earned on maturity is fully taxable and one has to consider it while submitting their income tax returns. All the nationalized banks offer the cash loan amounting to 80% of the basic value of the Kisan Vikas Patras. The renewals/ encashment of such Kisan Vikas Patra can also be done in your absence from the country by giving the necessary authority letter to your friend/relative or to your post office agent if he is trustworthy.

I have myself invested in this scheme since last 20 years or so without any problems on safety and security of money. I would suggest all my AC readers to consider this scheme for investment if they found it suitable. If you have any doubts still on advantages of this investment scheme, please feel free to contact me.