Post Office Scheme: When it comes to savings plans that provide secure investments and solid returns, the most favored options are the government schemes managed by the Post Office. The government guarantees the safety of any investment, whether big or small, which is why these are referred to as zero-risk schemes. There are various post office schemes available for everyone, from kids to seniors to women. One such scheme is the Post Office Money Double Scheme, also known as the Kisan Vikas Patra Yojana. It promises to double your funds in just 115 months.

Key Takeaways

Quick Read

Post Office KVP is a zero-risk scheme

The government guarantees the safety of investments in Post Office schemes. This means it’s a completely risk-free option. The Kisan Vikas Patra scheme, which doubles your money, provides guaranteed returns, and because of its many advantages, it’s one of the most sought-after Post Office schemes for those in search of safe options and better returns. Investments made through this scheme can be doubled in 9 years and 7 months, or 115 months.

The government is offering a strong interest rate of 7.5%

The Post Office Money Double Scheme (Kisan Vikas Patra) also boasts a robust interest rate. Currently, it stands at 7.50%. This interest is paid annually on investments in the Post Office KVP Scheme. As noted, the maturity period for this scheme is 115 months.

Open an account with just Rs 1,000

The Post Office KVP Scheme is well-liked for its double-money benefit. Under this government initiative, investors can start investing by opening an account with a minimum of Rs 1,000. There’s no upper limit on investments, so they can invest as much as they want and enjoy greater profits. Under this government scheme, anyone can open multiple KVP accounts.

This means there’s no fixed limit, and if an investor wants to have two accounts, they can do that, or even more. Investors can open both single and double accounts under the scheme. As part of this scheme, an account can also be opened in the name of a child over 10 years of age under the Kisan Vikas Patra scheme.

Knowt the calculation

If you look at the calculations for money doubling under the Post Office Kisan Vikas Patra scheme, if you invest a lump sum of Rs 5 lakh in this scheme, then at the annual interest rate of 7.5% provided by the government, the interest at the end of the first year will be Rs 37,500. This amount will be added to your principal amount for the next year, totaling Rs 537,500.

This means that in the second year, you will earn 7.5% interest on this amount, which will be Rs 40,312, and your investment will become Rs 577,812 in the third year. Using this calculation for the entire 9 years and 7 months, your amount will be Rs 10 lakh, or double. You can double your money even more by increasing your investment. For example, by investing Rs 6 lakh, you can get Rs 12 lakh, and by investing Rs 7 lakh, you can get Rs 14 lakh.