Do you want to grow your money safely and fast? Then this scheme of post office can be perfect for you. By investing ₹1 lakh in this scheme, you can make ₹2 lakh in just 2 years. This scheme is guaranteed by the government, so your money will be completely safe.
In this article we will tell you in detail about this wonderful scheme of the post office. We will learn how this scheme works, what are the benefits of investing in it, and how you can double your money. So let’s start and know this magical formula to double money!
What is Kisan Vikas Patra?
Kisan Vikas Patra or KVP is a popular small savings scheme of the post office. This scheme is run by the Government of India and your investment doubles in a fixed period of time. By investing in KVP you can grow your money in a safe and guaranteed way.
Key features of Kisan Vikas Patra
| Speciality | Description |
| Scheme Name | Kisan Vikas Patra (KVP) |
| interest rate | 7.5% per annum (compounded annually) |
| minimum investment | ₹1,000 |
| maximum investment | no limit |
| money doubling period | 115 months (9 years 7 months) |
| premature withdrawal | after 2.5 years |
| nomination facility | Available |
| Account opening eligibility | any Indian citizen |
Benefits of Kisan Vikas Patra
There are many benefits of investing in Kisan Vikas Patra:
- Secure Investment: KVP is government guaranteed, so your money is 100% safe.
- Guaranteed Returns: You know in advance when your money will double.
- Low investment amount: You can start with just ₹1,000.
- No upper limit: You can invest any amount you want.
- Easy Investment: Investment can be made easily from any post office.
- Transfer Facility: Certificate can be transferred from one person to another.
- Early withdrawal facility: You can withdraw your money after 2.5 years.
How to invest in Kisan Vikas Patra?
Investing in KVP is very easy. You can invest by following these steps:
- Go to your nearest post office.
- Fill the application form for KVP.
- Submit the copy of your Aadhar Card and PAN Card.
- Pay the investment amount (by cash or cheque).
- Get KVP Certificate.
How is the money doubled in Kisan Vikas Patra?
In KVP your money grows on the basis of compound interest. Currently KVP offers 7.5% annual interest. At this rate your money doubles in 115 months i.e. 9 years and 7 months.
Let us understand with an example:
- Suppose you invest ₹1,00,000.
- At the rate of 7.5% annual interest, this amount will become ₹ 2,00,000 after 115 months.
- Every year you get interest on your principal amount and interest, which makes the money grow faster.
Kisan Vikas Patra vs other investment options
Let’s see how KVP performs against other popular investment options:
- Bank FD: The interest rate in KVP is higher than bank FD.
- PPF: The lock-in period in PPF is 15 years, whereas in KVP it is only 9 years and 7 months.
- NSC: Tax exemption is available on investment in NSC, but not in KVP.
- Mutual Fund: There is no risk in KVP, whereas there is market risk in mutual funds.
Tax rules for Kisan Vikas Patra
Some important tax rules related to KVP:
- Tax exemption under section 80C is not available on investment in KVP.
- The interest received on KVP is taxable.
- TDS is not deducted on the maturity amount of KVP.
Important questions related to Kisan Vikas Patra
Can KVP be redeemed prematurely?
Yes, you can encash KVP any time after 2.5 years. However, if you redeem prematurely, you will get less interest.
Can KVP be mortgaged?
Yes, you can pledge KVP for loan in a bank or any financial institution.
Can a joint account be opened in KVP?
Yes, both single and joint accounts can be opened in KVP.
Can KVP be opened in the name of a minor?
Yes, parents or legal guardian can open a KVP in the name of a minor.
Limitations of Kisan Vikas Patra
KVP also has some disadvantages that should be kept in mind:
- Long lock-in period (9 years 7 months)
- Tax benefits are not available
- Tax has to be paid on interest
- Returns may be lower to deal with inflation
Kisan Vikas Patra options
If you are considering investment options other than KVP, these could be some good options:
- Public Provident Fund (PPF): Better, tax free returns for long term investments.
- National Savings Certificate (NSC): Tenure of 5 years, tax exemption under section 80C.
- Sukanya Samriddhi Yojana: Special scheme for daughters, higher interest rates.
- Senior Citizen Savings Scheme: For people aged 60+, higher interest rates.
- Tax-saving fixed deposits: 5 years tenure, tax exempt under section 80C.
Tips for Kisan Vikas Patra
Keep these things in mind while investing in KVP:
- Invest according to your investment goals.
- Use KVP for diversification in your portfolio.
- Plan to invest for the long term.
- Invest small amounts regularly.
- Plan to reinvest after maturity.
conclusion
Kisan Vikas Patra is a great investment option that doubles your money in a safe and guaranteed way. This scheme is perfect for those who want to grow their money with less risk. However, keep your financial goals and needs in mind before investing. If you can invest for a long term and want guaranteed returns, then KVP can be a good option for you.
Disclaimer
This article has been written for information purposes only. Kisan Vikas Patra is a genuine and government run scheme. However, it would be better to consult your financial advisor before taking investment decisions. Interest rates may change due to changes in market conditions and government policies. Therefore, before investing, definitely get the latest information.
