New Delhi :
Investors often seek schemes that guarantee substantial returns without compromising security.
Among the array of investment options, the Kisan Vikas Patra (KVP) stands out as a reliable choice offered by the Post Office.
Here’s what you need to know about this scheme:
What is Kisan Vikas Patra (KVP)?
Kisan Vikas Patra is a lump sum investment scheme backed by the Government of India, available in all post offices and major banks across the country.
Designed primarily for farmers, this scheme allows investors to double their money within a fixed period.
Doubling Your Money: How Does it Work?
With an annual interest rate of 7.5%, Kisan Vikas Patra offers secure returns to investors. Previously taking 120 months for money to double,
the scheme now ensures your investment doubles in just 115 months, equivalent to 9 years and 7 months.
Illustration: Turning ₹5 Lakh into ₹10 Lakh
Investing ₹5 lakh today in KVP will yield ₹10 lakh after 115 months. Essentially, you earn ₹5 lakh directly from interest. Even investing ₹4 lakh will fetch you ₹8 lakh within the same duration
Notably, the scheme also benefits from compounding interest, allowing you to earn interest on interest.
Opening and Managing Accounts:
Start with a minimum investment of ₹1000, with subsequent investments in multiples of ₹100.
Multiple accounts can be opened under the scheme, either individually or jointly by up to three adults.
Nominee facility is available, and minors can have accounts managed by guardians.
Premature closure options are available after 2 years and 6 months, subject to certain conditions.
Interest earned from Kisan Vikas Patra is taxable and must be declared under ‘Income from other sources’ during tax filing.
Kisan Vikas Patra offers a secure avenue for long-term investments, ensuring steady growth and returns for investors.
