Kisan Vikas Patra (KVP) is a saving scheme offered by the Indian Post Office that allows individuals to double their money over a period of 115 months.
It is an investment option that can be availed at any post office or online through the India Post Payments Bank (IPPB) website
KVP plan works by allowing individuals to purchase certificates in denominations of INR 1,000 and multiple of 100.
There is no upper limit on the amount that one can invest in Kisan Vikas Patra. You have the freedom to invest as per your preferences.
“Investing INR 1 lakh in the Kisan Vikas Patra (KVP) plan today will result in a balance of INR 2 lakh after 115 months.”
The certificates can be purchased by an individual or jointly with another person.
Interest is paid on the investment at a fixed rate, which is currently 7.50% per annum (Q1 FY 2024-25).
The interest is compounded annually and is paid along with the principal amount at the time of maturity.
One of the main attractions of the KVP plan is that it allows individuals to double their money over a period of 10 years. For example, if an individual invests INR 1,00,000 in the KVP plan, they will receive INR 2,00,000 at the time of maturity 115 Month.
KVP plan also offers the flexibility to prematurely encash the certificates after a lock-in period of 2.5 years. However, the amount received upon premature encashment may be less than the invested amount due to applicable deductions.
Benefit of Kisan Vikas Patra (KVP) :
Here are some of the benefits of the Kisan Vikas Patra (KVP):
- High Fixed Interest Rate: KVP plan currently offers a fixed interest rate of 7.50% per annum, which is higher than other traditional investment options.
- Safe & Secure : The KVP plan is backed by the Government of India, making it a safe and secure investment option.
- Tax Benefits: Investments in the KVP plan may be eligible for tax benefits under Section 80C of the Income Tax Act.
- Flexible Investment Options: Minimum investment of 1000, increased by multiples of 100. The KVP plan allows individuals to invest in a variety of denominations (1000, 5000, 10,000, 1,00,000).
How to Invest in Kisan Vikas Patra?
Here are the steps to invest in the Kisan Vikas Patra (KVP) plan:
Check your eligibility: To be eligible to invest in the KVP plan, you must be an Indian citizen and have a valid proof of identity and address(KYC Document).
How can open A/c:
- Single Adult
- Joint Account (upto 3 adult)
- A guardian on behalf of minor or on behalf of person unsound mind
- Minor above 10 years in his own name
Pay for the KVP Certificate: You can pay for the KVP certificate using cash, a demand draft, or a cheque.
Receive KVP certificate: You will receive the KVP certificate in the mail within a few weeks of purchasing it.
Keep the certificate in a safe place as it will be required for encashment at the time of maturity.
Historic Interest Rates of KVP From 1988 to Present: The Journey of Double Money
| From | To | Interest | Maturity Period |
|---|---|---|---|
| 23-03-1988 | 31-12-1998 | 12.00% | 5 Year 6 Month |
| 01-01-1999 | 14-01-2000 | 11.50% | 6 Year |
| 15-01-2000 | 28-02-2001 | 11.00% | 6 Year 6 Month |
| 01-03-2001 | 28-02-2002 | 9.50% | 7 Year 3 Month |
| 01-03-2002 | 28-02-2003 | 9.00% | 7 Year 8 Month |
| 01-03-2003 | 30-11-2011 | 8.00% | 8 Year 7 Month (Discontinued) |
| 23-09-2014 | 31-03-2016 | 8.70% | (Re-introduced) 8 Year 4 Month |
| 01-04-2016 | 30-09-2016 | 7.80% | 9 Year 2 Month |
| 01-10-2016 | 31-03-2017 | 7.70% | 9 Year 4 Month |
| 01-04-2017 | 30-06-2017 | 7.60% | 9 Year 5 Month |
| 01-07-2017 | 31-12-2017 | 7.50% | 9 Year 7 Month |
| 01-01-2018 | 30-09-2018 | 7.30% | 9 Year 10 Month |
| 01-10-2018 | 30-06-2019 | 7.70% | 9 Year 4 Month |
| 01-07-2019 | 31-03-2020 | 7.60% | 9 Year 5 Month |
| 01-04-2020 | 30-09-2022 | 6.90% | 10 Year 4 Month |
| 01-10-2022 | 31-12-2022 | 7.00% | 10 Year 3 Month |
| 01-01-2023 | 31-03-2023 | 7.20% | 10 Year |
| 01-04-2023 | 31-03-2024 | 7.50% | 9 Year 7 Month |
| 01-04-2024 | 7.50% |
The Kisan Vikas Patra investment doubles in 115 months.
Conclusion
The Kisan Vikas Patra (KVP) plan can be a good long-term investment option for individuals looking for a safe and secure investment with a fixed interest rate.
The KVP plan offers the potential to double your money over a period of 10 years, making it an attractive option for individuals with a long-term investment horizon.
