New Delhi:
Kisan Vikas Patra (KVP) stands out as one of the most attractive small savings schemes offered by the Indian Post Office, boasting a current interest rate of 7.5%, compounded annually.
Investors looking for a risk-free and long-term investment avenue can consider KVP,
with the scheme offering the potential to double one’s money in just 9 years and 7 months at the existing interest rate.
Interest Rate and Compounding:
Kisan Vikas Patra currently provides an annual interest rate of 7.5%, compounded annually. This interest rate facilitates the doubling of invested capital in approximately 115 months, translating to less than ten years.
Maturity Corpus Example:
To illustrate, an investment of ₹50,000 in KVP will yield a corpus of ₹1,00,000 post-maturity. This showcases the lucrative potential for wealth multiplication through this investment avenue.
Account Opening:
KVP accounts can be opened by a single adult, or jointly by up to three adults.
Additionally, a guardian can open an account on behalf of a minor or a person of unsound mind.
Minors above the age of 10 can also have their KVP accounts in their own names.
Minimum and Maximum Limits:
There is no upper limit on investment in Kisan Vikas Patra. However, the minimum investment amount is ₹1,000, making it an accessible option for a wide range of investors.
Premature Closure Conditions:
KVP accounts can be prematurely closed under various conditions, including the death of a single account holder or all account holders in a joint account, forfeiture by a Gazette officer, court orders, and after 2 years and 6 months from the deposit date.
Taxation:
It’s important to note that KVP does not qualify for deductions under Section 80C of the Income Tax Act. Additionally, returns on KVP investments are taxable.
