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Five Things To Know About Kisan Vikas Patra Small Savings Scheme

Kisan Vikas Patra offers compound interest on sum invested and the principal amount invested in Kisan Vikas Patra Accounts doubles in 112 months.

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Five Things To Know About Kisan Vikas Patra Small Savings Scheme

Kisan Vikas Patra (KVP) scheme: The amount invested doubles in 112 months, according to India Post


Kisan Vikas Patra (KVP) is one of the nine government-sponsored small savings schemes. Investment in Kisan Vikas Patra certificates in a post office fetches interest on a compound basis. The amount invested in a KVP account in a post office doubles in a period of 112 months, according to India Post's website - www.indiapost.gov.in. India Post, under Government of India's Department of Post, has a network of more than 1.5 lakh post offices across the country. (Also Read: Interest Rates On Post Office Fixed Deposit Vs Public Provident Fund Vs Kisan Vikas Patra)

Here are five key details about investment in India Post's Kisan Vikas Patra savings scheme:

1. Kisan Vikas Patra interest rate (rate of return)

India Post offers interest rate of 7.7 per cent on Kisan Vikas Patra accounts and the interest is compounded annually. The sum invested gets doubled in 112 months, according to the India Post website.

2. Kisan Vikas Patra investment limit

A minimum of Rs 1,000 can be invested in a KVP account, and investment in the multiples of Rs 1,000 is permitted. There is no upper limit applicable to the amount of investment.

kisan vikas patra calculator

3. Kisan Vikas Patra​ eligibility

A Kisan Vikas Patra account can be opened by an adult for self or on behalf of a minor or by two adults (jointly). The KVP can be purchased at any departmental post office. A nomination facility is available. KVP certificates can be transferred from one person to another, and from one post office to another, according to to India Post.

4. Kisan Vikas Patra maturity period (lock-in)

KVP certificates can be encashed after 30 months from the date of issue.

5. Kisan Vikas Patra income tax benefit

Investments made under the Kisan Vikas Patra accounts qualify for income tax benefit under Section 80C of the Income Tax Act.

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