Agriculture World

You Must Be AWARE of These 4 Things before Investing in Kisan Vikas Patra Scheme

Tooba Maher
Tooba Maher
post office scheme
Kisan Vikas Patra

Kisan Vikas Patra: Now double the money of your investment by investing in this small saving scheme of post office called as Kisan Vikas Patra (KVP). This is a very popular central government scheme launched by India Post in 1988.

Double your money by Small Saving Scheme (KVP):

Kisan Vikas Patra scheme claims that by investing 10 years and 4 months (124 months), your money will be doubled. Investors who want to avoid risk can double their money by investing in these Small Saving Schemes. It guarantees secured investment and profitable returns in future.

Kisan Vikas Patra: Interest Rate

The rate of interest for KVP scheme is fixed by the government on a quarterly basis.

Kisan Vikas Patra: Secured investment & profitable returns in future

Under this scheme, any Indian citizen who is above the age of 18 years can invest a minimum of Rs 1,000 to purchase a KVP certificate. However, it can be invested only in multiples of Rs 1,000, and there is no upper limit on investment. It means that you can invest as much as you want. But, for any investment of more than Rs 50,000 you will have to provide your PAN details.

One must be very careful about few things before investing in KVP scheme. Take a note of the following important things.

KVP Interest & Return:

Presently, the rate of interest on KVP is 6.9 percent, compounded annually. However, if you are planning to invest a certain amount in this plan, then your investment will almost double at the end of 124 months, as per the KVP claim.

Eligibility of Kisan Vikas Patra scheme:

  1. It can be purchased by any Indian citizen who is above the age of 18 years or even by a single adult/jointly by a maximum of 3 adults. You can easily avail this scheme from the nearest post office.

  2. KVP scheme finds resonance with individuals in rural parts of the country.

  3. The interested ones can apply for Kisan Vikas Patra in your own name or on behalf of a minor. Trusts are also eligible to invest in this scheme. But, HUFs (Hindu Undivided Family) and NRIs are not eligible to invest in KVP.

  4. This scheme can be purchased by an adult on behalf of a minor. (These individuals should put a correct date of birth of the minor along with details of the parent/guardian. The minor should be above 10 years)

Investment Limit:

Investors can note that certificates are issued for the amount invested in the scheme. The minimum amount to invest in this scheme is 1,000 rupees. PAN card is mandatory for investments if the amout is above Rs 50,000. The interest on investment in KVP certificate will be decided by the Ministry of Finance which is not directly related to market risks.

Withdrawal:

KVP investors can withdraw prematurely from it as compared to many other long term savings schemes. Withdrawing within one year of purchasing the certificate, you will not receive interest & will also have to pay a fine. But, if you withdraw between 1 year and 2 and a half years after purchasing the certificate, then no penalty will have to be paid.

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