Investment in Post Office Time Deposit Scheme in India

The investments in the USA are not able to fetch the attractive rates of the interest in view of the current economy. Under the circumstances, we have to think for the options of some profitable investments in foreign countries, if feasible. The Indian citizens residing in the USA on green card basis can have an access to some good and profitable investment schemes, which are operated by all the post offices of India. One of such investment is the post office time deposit scheme that can be thought for investment in India. This scheme offers the interest rate in the range of 6.25% to 7% depending upon the time period of 1 to 3 years of investment. As this scheme is directly handled by government of India through the network of the post offices, the investment in this scheme can be considered very safe and secure.

This investment scheme can be opted in three options based on the time period of the investment. These options are one year, two years, and three years. The compound interest rate of 6.25%, 6.5%, and 7% are paid respectively for the investment periods of one year, two years, and three years. The total maturity amount with the interest accrued is paid at the time of investment getting matured. You need to fill in one simple form along with depositing of the money either by cash or check issued in the name of the postmaster of the respective post office. The post office issues the pass book for the amount invested within couple of days of getting the check encashed through the bank. This passbook is to be preserved very carefully and needs to be presented at the post office at the time of maturity while renewal or encashment. It would fetch you an additional incentive of half a percent of the amount invested in cash, which is offered by the approved post office agents, which are appointed by the Indian government. It is worth mentioning here that one do not get any income tax rebate on the principle amount invested as well as the interest earned on it. The account for this investment can be made in joint names, maximum up to three persons, with various payment options. The nomination facility is also available to the adult person having age more than 18 years. The minor age person below 18 years of age can be nominated with nomination of some other adult person, who is considered nominee till the minor nominee reaches 18 years of age. The renewals/encashment at the time of maturity can also be processed in your absence by giving the authority letter to your friend/relative or your post office agent, if he is trustworthy enough.

Such investments are considered almost equivalent to liquid cash as the money you have invested is in the safe hands of government of India. If such investments are shown to any nationalized banks in India, the banks can offer you the cash loan immediately to the tune of 80%. This scheme is open to all India citizens, even to the USA residents having green cards. This scheme invests the money for a short duration of 1 year to 3 year and hence, liquidity of the amount invested is quiet high. Moreover no amount is deducted by the post offices towards the income tax. Hence, you may not have to enter in to all hassles of getting the refund from income tax authorities at a later date. Most of the Indian citizens invest the money in this scheme and earn reasonably good rate of interest of around 7% for the three years investment period. I have myself invested some money in this scheme and am fully satisfied with the performance of the scheme. I have no hesitation in recommending this investment scheme to all my AC readers who are in the lookout for some suitable investment scheme in India.