Kisan Vikas Patra Interest Rate 2018: Double your money in less than 10 years! Invest any amount in this scheme

If you are looking for the safest option to double your money, here's the one backed by the government. By investing in Kisan Vikas Patra (KVP), you can double your money in less than 10 years. Currently, the interest rate offered on KVP by the government is 7.7% (compounded annually). According to the official India Post website, the amount doubles in 112 months (which is equal to nine years and four months). 

One can make a minimum investment of Rs 1000 in KVP and further in the multiples of Rs 1000. There is no upper limit. For example, if you buy KVP for Rs 1 lakh today, you can get Rs 2 lakh by January 2028. Currently, the maturity period of KVP is 112 months (nine years and four months) as per the current rate of interest. The maturity duration changes as per the interest rates prevailing in the market. 

Features:

- KVP can be purchased by an adult for himself or on behalf of a minor or by two adults.

- KVP can be purchased from any Departmental Post office, and several commercial banks. KVP can also be purchased only from several banks. 

- KVP comes with the nomination facility. 

- One can transfer the KVP certificate from one person to another and from one post office to another.

- The KVP certificate can be encashed after 2 & 1/2 years from the date of issue.

ALSO READ | Post Office Sukanya Samriddhi Yojana, Term Deposit, PPF, RD, KVP to NSC: Benefits compared

Lock-in period: KVP has a lock-in period of 2 years and 6 months. After 2.5 years and thereafter in any block of six months, the customer can opt for premature encashment of the KVP certificates. TDS will not be deducted on the maturity amount.

Non-Resident Indians are not eligible to purchase Kisan Vikas Patra as there is no such provision in the rules.

The government recently revised rates on several small savings schemes. The rates on KVP was raised from 7.3% to 7.7%.

KVP was re-introduced in 2014 to encourage people, who may have banked and unbanked savings to invest in this instrument. In his maiden Budget Speech in the Lok Sabha, Finance Minister Arun Jaitley had then said that KVP was a very popular instrument among small savers and was being re-introduced to promote saving.

The government had said in 2014 that it had no proposal to separately tax benefit on KVP. However, the income on KVP is taxable as per existing provisions.