In today’s times, where market fluctuations impact every investment, Kisan Vikas Patra (KVP) is ideal for investors seeking stable and reliable returns. The most important aspect of this scheme is its government guarantee. Since it is fully backed by the government, it is considered 100% safe. This is why a large number of people are choosing it as a long-term investment. KVP currently offers an annual interest rate of 7.5%, which is unaffected by market fluctuations. Although interest rates are reviewed quarterly, the fixed returns make it an excellent source of stable income for investors.
How does compound interest work
Money in Kisan Vikas Patra grows rapidly through the tremendous power of compound interest. It is this compound interest that ensures that your deposit doubles by the end of the stipulated period. For example, if you deposit ₹1 lakh in this scheme, you earn approximately ₹7,500 in interest in the first year.
The specialty of compounding interest is that the interest amount is added to your principal each year, and then interest is earned on the increased total amount. This is why, by the end of the investment period (115 months), your ₹1 lakh investment grows to ₹2 lakh. Similarly, if you invest ₹5 lakh, you will receive ₹10 lakh upon maturity. Thus, this scheme promises a surefire way to double your money risk-free.
Simple Account Opening Rules and Features
Another great feature of this scheme is its simple account opening rules, making it accessible to everyone. Investors can open a single account, a joint account, or a joint account with up to three members. This plan offers investors the flexibility to close their account after 2.5 years and withdraw their deposits if necessary. It offers a combination of liquidity and convenience that makes it more convenient than other lock-in plans.
KVP is especially useful for those who are risk-averse and want to see their hard-earned money grow without uncertainty. This plan offers an unmatched blend of security and reliability that is rarely seen in the market.