Kisan Vikas Patra double money benefit: Know how to buy this scheme, interest rate and benefits

Kisan Vikas Patra or KVP is a savings certificate scheme which was launched by India Post in 1988. This scheme is a popular investment instrument and currently offers returns at the rate of 6.9 per cent per annum. The scheme can be purchased by any Indian citizen who is above the age of 18 years from the nearest post office

ZeeBiz WebTeam | Jul 15, 2020, 06:04 PM IST

Kisan Vikas Patra or KVP is a savings certificate scheme which was launched by India Post in 1988. This scheme is a popular investment instrument and currently offers returns at the rate of 6.9 per cent per annum. The scheme can be purchased by any Indian citizen who is above the age of 18 years from the nearest post office. This scheme finds resonance with individuals in rural parts of the country. Pic credit: PTI

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KVP is popular because it doubles your invested amount in 124 months i.e. in just 10 years and 4 months. It can be purchased at a minimum investment of Rs 1000 in multiples of 100 and with no maximum limit. The guaranteed returns from this scheme makes it a risk free investment option.Pic credit: Website

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See important features here:

KVP scheme can be purchased by a single adult and or jointly by a maximum of 3 adults. An adult can also purchase this scheme on behalf of a minor. Individuals buying this scheme in the name of a minor should put a correct date of birth of the minor along with details of the parent/guardian. The minor should be above 10 years. Pic credit: PTI

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KVP is issued in the shape of Passbook and can be purchased from any Departmental Post office. This scheme provides facility of nomination. Pic credit: PTI

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Certificate can be transferred from one person to another and from one post office to another. Certificate can be encashed after 2 & 1/2 years from the date of issue. Pic credit: Reuters

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The minimum locking period in this scheme is 30 months and the amount can be withdrawn after this period. The proceeds of maturity will continue to accrue interest till the final amount is withdrawn. Pic credit: Reuters

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Unlike several other saving schemes, KVP offers no incentive as the interest on it is taxable on accrual basis. It is taxed as Income from Other Sources. Pic credit: Reuters