Kisan Vikas Patra interest rate: KVP can be purchased from post offices and select banks. The minimum investment is Rs 1,000 and there is no upper limit on investment.
Kisan Vikas Patra (KVP) is a Government Small Savings Scheme backed by the government. This scheme is designed to double your investment in a fixed period. A certificate is issued to the investor and the investment amount is doubled at the time of maturity (Kisan Vikas Patra Double your Money).
The aim of this scheme is to promote long-term investment without risk among the common people so that more and more people can save money for their future. KVP can be purchased from post offices and select banks. In which the minimum investment is Rs 1,000 and there is no upper limit on investment.
How long does it take for the money to double under KVP?
How long will your investment double through Kisan Vikas Patra will depend on the interest rate at the time of your investment. Currently, this government scheme is offering guaranteed returns at a rate of 7.5%. Which means that your invested amount will double in about 115 months i.e. 9 years and 7 months. The period for doubling your investment is linked to the interest rate announced by the government, so it is important to check the current rates before investing.
Initially launched for farmers, this scheme is now open to all, offering guaranteed returns on investment. With minimal risk and a fixed interest rate, KVP is a good investment option for those who want to double their investment over time. Let us know about this scheme in detail.
Key features of Kisan Vikas Patra
Guaranteed returns: Your investment will double after a stipulated period.
Fixed interest rate: Its interest rate is revised by the government from time to time, but once invested, the interest rate remains stable for your entire investment period. That is, the interest rate at the time of your investment will remain applicable for the entire investment period, even if the interest rate increases or decreases later.
Security: KVP is a Government of India scheme, which makes it one of the safest investment options.
Minimum investment: You can start investing with as little as Rs 1,000, and there is no upper limit on investment.
Premature withdrawal: While the money is locked for a specified period, premature withdrawal is allowed under certain conditions, such as death or court order.
How to buy Kisan Vikas Patra (KVP)?
You can buy KVP from any post office or select banks across India. Below is a step-by-step process on how you can buy KVP.
Visit a post office or bank: KVP certificates are available for purchase at any post office and select banks.
Fill the application form: You need to fill a KVP application form and provide your Aadhaar card or PAN card as identity proof.
Make payment: You can invest a minimum of Rs 1,000 in KVP and can increase it in multiples of 1,000.
Certificate: Once your payment is processed, you will receive a KVP certificate as proof of your investment. You can choose between a physical certificate or an electronic certificate (eKVP) as per your convenience.
Benefits of Kisan Vikas Patra
Less risk, more security: Since KVP is backed by the Government of India, your investment in it is safe.
Environment doubling guarantee: No matter how the market is, your investment will double in a specific period.
No upper investment limit: Unlike other government schemes, there is no upper investment limit on investment in KVP, which makes it a great option for big savings.
Premature withdrawal facility: Although it is a long term investment, KVP still gives the flexibility to withdraw in emergencies.
Easy to transfer: KVP certificates can be easily transferred from one person to another and from one post office to another.
Drawbacks of Kisan Vikas Patra
Taxable returns: Interest earned on KVP is fully taxable, and unlike other savings schemes, it does not offer any tax benefit under Section 80C.
Lock-in period: This scheme has a lock-in period of 2.5 years, which means that you cannot withdraw your money before this period except under special circumstances.
Kisan Vikas Patra is a safe and great investment option for those who want to double their money over time without taking much risk. Due to its guaranteed returns and being a government scheme, it attracts investors who prefer stability over high returns. However, it is important for investors to keep in mind that despite Kisan Vikas Patra being safe, the returns on it are fully taxable, which can affect your overall earnings.
