The government takes a big decision on the Kisan Vikas Patra Yojana. Yes, you’ve heard it right. Kisan Vikas Patra (KVP) is a government-backed small savings scheme. This scheme is designed to double your investment over a given period. A certificate is issued to the investor in it, and the amount of investment is doubled (Kisan Vikas Patra Double Your Money) at the time of maturity. The goal of this scheme is to promote long-term investment without risk in the common people so that more and more people can add money for their future. KVP can be purchased from post offices and select banks. In which the minimum investment is Rs 1,000 and there is no upper limit for investment.
How long does it take for money to double under KVP?
How long your investment will be doubled through Kisan Vikas Patra will depend on the interest rate at the time of your investment. At present, this government scheme is offering guaranteed returns with a rate of 7.5%. Which means that your invested amount will double in about 115 months, i.e., 9 years and 7 months. The period to double your investment is linked to the interest rate announced by the government, so it is important to check the current rates before investing.
Initially launched for farmers, the scheme is now open to all, offering guaranteed returns on investment. With minimal risk and a fixed interest rate, KVP is a good investment option for those who want to double their investment over time. Let us know about this scheme in detail.
Special Features of Kisan Vikas Patra Your investment will double after a set period
Fixed interest rate: Its interest rate is revised by the government from time to time, but once invested, the interest rate remains constant for your entire investment tenure. That is, the interest rate at the time of your investment will remain in force for the entire investment period, regardless of whether the interest rate increases or decreases later.
Security: KVP is a Government of India scheme, making it one of the safest investment options.
Minimum investment: You can start investing in it from Rs 1,000, and there is no upper limit to invest in it.
Premature withdrawal: While the money is locked in for a set period, premature withdrawal is allowed under certain conditions, such as death or court orders.
How to buy Kisan Vikas Patra?
You can buy KVP from any post office or select banks across India. The step-by-step process on how you can buy KVP is explained below.
Visit a post office or bank: KVP certificates are available for purchase at any post office and select banks.
Fill out the application form: You will have to fill out a KVP application form and provide your Aadhaar card or PAN card as identity proof.
Make the payment: You can invest as little as Rs 1,000 in KVP and increase it in multiples of 1,000.
Certificate: Once your payment is processed, you will receive an KVP certificate as proof of your investment. You can choose the option of Physical Certificate or Electronic Certificate (eKVP) according to your convenience.
Drawbacks of Kisan Vikas Patra
Taxable returns: The interest earned on KVP is fully taxable, and unlike other savings schemes, it does not offer any tax benefit under Section 80C.
Lock-in period: This plan has a lock-in period of 2.5 years, which means that except under special circumstances, you cannot withdraw your money before this period.
Kisan Vikas Patra is a safe and great investment option for those who want to double their money over time without taking much risk. Due to its guaranteed returns and government scheme, it attracts investors who prefer stability over high returns.
