Post Office Saving Scheme: All You Need To Know About Kisan Vikas Patra (KVP) Account
Post offices across the country provide a host of saving schemes with different rates of interest. Kisan Vikas Patra (KVP), one such product offered by post offices, at present grant an interest rate of 7.7 per cent. Post office KVP certificates can be purchased by an adult for self or on behalf of a minor by an adult, or by two adult. This means that the investment can be made singly or jointly. KVP certificates, which supports nomination facility, can be purchased from any departmental post office, according to India Post's official website - indiapost.gov.in.
Here are key things to know about Post Office Kisan Vikas Patra (KVP) account:
Minimum contribution required/maximum allowed
Kisan Vikas Patra account can be opened in a post office against a minimum of Rs 1,000. The investor can pick any amount in multiples of Rs 1,000 to invest in Kisan Vikas Patra, according to the India Post. There is upper limit on the amount that can be invested in a Kisan Vikas Patra (KVP) account.
Interest rates
The annual return of 7.7 per cent on the KVP small savings scheme is applicable for the quarter ending March 31, 2019, according to India Post's website. Investment in the Kisan Vikas Patra (KVP) scheme Interest on money deposited in the KVP account is compounded on an annual basis.
(Also read: All You Need To Know About Post Office RD Account)
Maturity period
Money invested in Post office KVP account doubles in a period of 112 months (nine years and four months).
Transfer of certificates
Post office Kisan Vikas Patra (KVP) certificates can be transferred from one person to another and from one post office to another.
Encashment of KVP
The Kisan Vikas Patra scheme has a minimum lock-in period of two-and-a-half years, which means the invested amount can be liquidated after this period.