Kisan Vikas Patra: In today’s times, when the stock market is experiencing tremendous volatility and investors are concerned about their future savings, the Post Office Kisan Vikas Patra (KVP) has emerged as a reliable option. If you also want to double your hard-earned money within a fixed period of time without any risk, this Central Government scheme is the best option for you. With a 100% government guarantee and fixed returns, this scheme is a top choice for those looking for safe investments and guaranteed profits. In this article, we will explore in detail how the Kisan Vikas Patra doubles your money and its rules.
What is Kisan Vikas Patra
The Kisan Vikas Patra is a fixed-income savings scheme operated by the India Post. The most revolutionary feature of this scheme is that the amount deposited in it automatically doubles after a certain period. Since it is backed by the Central Government, the money invested in it remains completely free from market risks. This scheme is a great safety net for investors looking to invest for the medium to long term.
How much time it will take for your money to double
Currently, the Post Office is offering an annual compound interest rate of 7.5% on Kisan Vikas Patra. This interest rate is quite competitive compared to bank FDs and other savings schemes. At this rate, your invested money doubles in 115 months (approximately 9 years and 7 months).
For example, if you invest ₹1 lakh in this scheme today, you will receive a full ₹2 lakh upon maturity. Similarly, an investment of ₹5 lakh will convert into ₹10 lakh. This scheme is equally beneficial for both small and large investors because the returns are pre-determined.
Who can invest and how much
Another key feature of the KVP scheme is that there is no maximum investment limit. You can deposit any amount according to your capacity. Investing in this scheme can begin with a minimum of ₹1,000, while there is no upper limit on the maximum investment. Investors can choose between a ‘single’ or ‘joint’ account as per their preference. Furthermore, parents can also open a KVP account in the name of their minor children, creating a secure fund for their future needs.
Other Benefits of the KVP Scheme
Doubling your money isn’t the only attraction of this scheme; it also offers several other VIP features that make your investment even more convenient. In case of an emergency, you can easily obtain a loan from a bank (Loan against KVP) by pledging your Kisan Vikas Patra certificate. If you are changing your city, you can easily transfer your KVP account from one post office to another in any corner of the country. You can nominate any member of your family at the time of opening the account or later. This is a Government of India scheme, so both your principal and interest are covered by a sovereign guarantee.
Can premature withdrawals be made
Although the Kisan Vikas Patra is a long-term scheme, it also offers the option of premature withdrawal. You can withdraw your funds after two and a half years (30 months) of investment, subject to certain conditions.
However, investors should note that interest income from KVP is taxable. This means that the interest earned upon maturity will be taxable according to your income tax slab. This scheme does not offer tax exemption under Section 80C, so be sure to assess your tax liability before investing.