KVP: This small savings scheme doubles your money in 9.5 years—Interest, minimum investment, other key details

With the prices rising everyday, whether in terms of education, health check ups, buying assets or even normal grocery item. It has become more important for people to start saving, even if it is in small amounts. Savings acts like a cushion during emergencies and also useful for other goals like children's education, medical expenses or paying off loans. Small savings may seem modest, but over time, they can make a big difference.

Post offices in India offer small savings schemes like Kisan Vikas Patra (KVP), a guaranteed-return scheme that offers steady and secure wealth creation. This government-backed scheme comes with attractive interest rates, tax benefits and the safety of guaranteed returns.

Here are some important key points about the scheme:

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About Kisan Vikas Patra (KVP) Scheme

According to official records, the scheme was launched by the Government of India on April 1, 1988. Originallly, the maturity period was 5.5 years.

Later, the Department of Economic Affairs, Ministry of Finance, Government of India, relaunched Kisan Vikas Patra scheme year 2014 in view of the popular demand and to revitalise small savings. The amount invested in Kisan Vikas Patra (KYP) doubles in 115 months at the present rate.

Know the Benefits of KVP

• It scheme an interest rate of 7.5 per cent compounded annually on investment
• Amount invested doubles in 115 months (nine years and seven months)
• There is no maximum deposit limit
• Accounts can be opened in Post offices and in authorized banks
• KVP can be transferred from one person to another and from one post office to another
• KVP can be encashed after 2 and half years from the date of investment at the specified rates

KVP: Guaranteed returns with no investment limit

The scheme offers an annual interest rate of 7.5 per cent, compounded yearly. Investors can begin with a minimum deposit of Rs 1,000 in multiples of Rs 100 with no maximum investment limit, ensuring flexibility and secure growth.

Types of KVP Accounts and Their Features

KVP accounts are of three types, that are Single holder, Joint A Type account and Joint B Type account, know them in detail below

Single holder Type account: It can be opened by an adult for himself, or on behalf of a minor or a person of unsound mind of whom he is the guardian, or by a minor who has attained the age of 10 years

Joint A Type account: It may be opened jointly in the names of upto three adults payable to all the account holders jointly or to the survivors

Joint B Type account: This account may be opened jointly in the name of upto three adults payable to any of the account holders or to the survivor or survivors

Eligibility criteria for KVP

• The candidate must be a resident citizen of India to be eligible for the scheme.
• A Single Holder
• Joint Account (up to three adults)
• Joint ‘A’ type, to be operated by all the depositors or the surviving depositors jointly
• Joint ‘B’ type, to be operated by any of the depositors or the surviving depositors severally
• A guardian on behalf of minor
• A guardian on behalf of person of unsound mind (now termed as Authorised Account)
• A minor who has attained the age of ten years

Payment on Maturity

⦁ Deposited money in the account shall double on maturity

⦁ The maturity period of the deposit under this scheme shall be determined on the rate of interest applicable at the time of opening the account

Pledging of Account

• The account may be pledged or transferred as security, by submitting prescribed application form at concerned Post Office supported with acceptance letter from the pledgee

Transfer or pledging may be made to

• The President of India/Governor of a State
• RBI/Scheduled Bank/Co-operative Society/Co-operative Bank
• Corporation (public/private)/Govt. Company/Local Authority
• Housing finance company approved by National Housing Bank and notified by Central Government

How to apply

Following these simple 6 steps, you can easily apply for KVP scheme

Step 1: The person desiring to purchase a Certificate, shall present an application either in person or through an authorised agent of the small savings schemes at a Post Office or Bank. Visit the nearest Post Office Branch or a designated bank

Step 2: Collect application form or download it from the official websites

Step 3: Fill out the application form and attach all the required documents

Step 4: Fill out the declaration and nomination details

Step 5: Submit the application form with an initial amount of investment/deposit

Step 6: Upon processing your application, a KVP certificate is issued immediately. Keep the documents safe which will need at the time of maturity

Required documents

• Passport size photo
• Aadhar card
• PAN card copy
• Birth certificate

The below mentioned documents are accepted as officially valid documents for the purpose of identification and address proof:

• Passport
• Driving License
• Voter's ID card
• Job card issued by NREGA signed by the State Government officer
• Letter issued by the National Population Register containing details of name and address

Transfer of account

An account may be transferred from one individual to another, subject to the condition that the transferee is eligible to open an account under this Scheme, in following conditions only:

• On the death of account holder(s) to nominee/legal heirs
• On the death of any of account holders in joint account to surviving holder(s)
• On the order of the court
• On pledging of account