KVP Scheme: In today’s times, when the stock market experiences both surges and sharp declines, the average investor is concerned about the safety of their money. In such times, investment options that offer minimal risk and guaranteed returns are preferred. The Post Office’s Kisan Vikas Patra scheme is a reliable government scheme designed with this in mind.

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What is Kisan Vikas Patra?

Kisan Vikas Patra is a long-term savings scheme operated through the Indian Postal Department. The main objective of this scheme is to provide investors with a secure environment and guaranteed returns. The invested money automatically doubles after a fixed period, making this scheme attractive for risk-averse investors.

Current Interest Rate and Maturity Period

Currently, Kisan Vikas Patra offers an annual compound interest rate of 7.5 percent. According to this interest rate, the invested amount doubles in 115 months, which is approximately 9 years and 7 months. For example, if an investor invests ₹1 lakh, they will receive a full ₹2 lakh upon maturity.

Investment Limit and Account Facilities

The minimum investment in the KVP scheme starts from ₹1000, allowing even small investors to easily participate. There is no upper limit on the maximum investment. Investors can open single or joint accounts. Parents can also purchase Kisan Vikas Patra in the name of a minor child to create a secure fund for future expenses.

Additional Benefits of Kisan Vikas Patra

The biggest advantage of this scheme is its 100 percent government guarantee. In addition, KVP certificates can be pledged as collateral to obtain a loan from a bank or financial institution. The facility to transfer the account from one post office to another is also available. The nomination option provides additional security to the investor’s family.

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Premature Withdrawal and Tax Rules

Although Kisan Vikas Patra is a long-term scheme, partial or full withdrawal is possible in certain special circumstances after two and a half years. Investors should note that the interest earned on this scheme is taxable and is subject to income tax according to the applicable tax slab. It does not qualify for tax exemption under Section 80C.