Many Indian citizens come to the USA to settle here with their family members on family based immigration visa. They will stay for a reasonably long time here as they have their green cards and are allowed to stay in the USA as permanent residents. Such persons
have to invest their money in India prior to coming here. It may not be advisable to bring their entire saving here along with them as that will substantially reduce their capital in the ratio of around 40, based on current conversion rate of US $. Moreover, the interest rate in India is much higher as compared to the USA and the money invested in India can fetch good interest rate to all such people.
There are many schemes available for the investment in India, both long term and short term. The persons living India for a long time have to invest their money, mostly in long term schemes so that they have not to bother for such investments, while they stay here. Also, such schemes have to be safe as such people are old and fall in senior citizens category and will not have any opportunity of earning in future. The suggested investment schemes are as follows.
1. Government schemes- There are many government schemes for investment in India that are very safe and pay around 8% of cumulative interest. RBI bonds, Railway bonds are such schemes. These schemes are for the period of 5 years and can be cumulative or non cumulative. If you are going to need the interest income in your hands, then, make investment in non Cumulative scheme, otherwise opt for cumulative scheme, where the interest earned by you is also reinvested, making your basic amount to grow. Some of the nationalized banks have recently started paying interest of 9% on fixed deposits for the period of 5 years. Such schemes are the best in terms of safety, being controlled by the government. However, it is difficult to withdraw money from such schemes during investment period without heavy loss of interest. It is suggested to invest around 50% of your capital in such schemes.
