Most people in India are looking for investment schemes that ensure the complete security of their money and also provide good returns over time. Among these reliable options, the Post Office Kisan Vikas Patra Scheme is very popular. This scheme not only provides government security but also offers stable and attractive interest rates, ensuring that the investment doubles over time.
Read More- New Labor Code 2025- How PF and Gratuity Hike Will Affect Your Monthly Salary
Why is the Post Office KVP Scheme completely risk-free?
Like all Post Office schemes, the KVP scheme is guaranteed by the government itself. This makes it considered an ideal investment option for those who prefer to avoid any kind of risk. The amount invested in this scheme doubles in 115 months, meaning your money will be fully doubled in approximately 9 years and 7 months.
Kisan Vikas Patra offers 7.5% annual interest
The government currently offers an annual interest rate of 7.5% on this scheme. This interest rate is determined after a quarterly review, but currently, it is considered quite attractive. KVP is a lump-sum investment scheme, where you can easily open an account at your nearest post office. This scheme has become a strong option for those seeking safe investments and those looking to build a large corpus over the long term.
How Money Doubles: Understand the Simple Calculation
If an investor makes a lump-sum investment of ₹1 lakh in Kisan Vikas Patra, they will receive ₹7,500 in interest at a rate of 7.5 per cent by the end of the first year. This amount, added to the principal, becomes ₹107,500. In the second year, interest is added to the same amount, bringing the total to ₹115,562. This process continues for 9 years and 7 months, and by the end of the term, the amount reaches approximately ₹2 lakh. This is why it is also known as the Money Double Scheme. Whether you invest 5 lakh or 7 lakh, the time required for the investment to double and the return are completely certain.
KVP offers both single and joint accounts
The unique feature of the Kisan Vikas Patra scheme is that investors can open both single and joint accounts. Three people can even open a joint account. With a single or joint account, the investor must add a nominee to make it easier to claim the funds in case of any emergency. Furthermore, after two and a half years, the investor can also close their account prematurely.