If you want to invest your savings in a scheme that is safe and gives good returns, then you can trust the schemes run by the Post Office. In these schemes, the government itself guarantees the safety of your money. Along with this, the interest rates are also very good.
The Post Office offers different small savings schemes for people of all ages and income groups. One special scheme among them is the Kisan Vikas Patra (KVP). This scheme promises to double your money in just 115 months. Let us understand in simple words how to invest in this scheme and what its benefits are.
Start with just ₹1,000
You can start investing in the Kisan Vikas Patra (KVP) scheme with just ₹1,000. Today, people work hard and save some money for the future so that they do not face any financial problems later. The KVP scheme from the Post Office is a good option for such people. This scheme is very popular because the money you invest is completely safe. The government gives a full guarantee on your money in this scheme. The best part is that there is no upper limit. You can invest as much money as you want.
7.5% Interest Every Year
This scheme also gives a strong interest rate. Right now, the interest rate is 7.5 percent per year. The interest is given on a yearly basis. The time period of this scheme is 115 months, which means about 9 years and 7 months. After this period, your money becomes double. You can open a single account in your name or you can open a joint account with someone else under this scheme.
Open Many Accounts If You Want
Another good thing about this scheme is that there is no limit on the number of accounts you can open. A person can open as many KVP accounts as he or she wants. If you want to open two accounts, you can do that. You can even open more than two accounts. Also, an account can be opened in the name of a child who is above 10 years of age.
How Your Money Becomes Double
Now, let’s understand how the money becomes doubled in this scheme. The interest is added every year to the main amount. This is called compound interest. Suppose you invest ₹1,00,000. After one year, you get ₹7,500 as interest. This interest is added to your original amount, so now your total becomes ₹1,07,500. In the second year, you get 7.5 per cent interest on ₹1,07,500, which is ₹8,062. This amount is again added to your total, and your money becomes ₹1,15,562. In the same way, the money keeps growing every year. After 115 months, your ₹1 lakh becomes ₹2 lakh. If someone invests ₹5 lakh, then at the time of maturity, that person will get ₹10 lakh.
A Safe and Smart Option
This is why many people trust this scheme. It is simple, safe, and gives strong returns without any risk. If you are looking for a secure way to grow your savings, the Kisan Vikas Patra scheme is a smart choice.