All working people usually think about saving some money (Small Saving Schemes) amidst all their expenses and also keep saving in different schemes as per their need and capacity.
Buying life insurance policies, investing in Provident Fund (PF), investing in Public Provident Fund (PPF), buying National Savings Certificate (NSC), getting fixed deposit (FD) done in the bank, etc. are quite popular methods for saving in our country, but apart from these, there are some such schemes, investing in which can lead to significant savings and income (in the form of interest).
Come, today let us tell you about one such government savings scheme Kisan Vikas Patra (KVP), by investing in which you can double the amount in a few years.
When and how much interest is received on KVP…?
The government is currently paying 7.5 percent interest on the amount invested under the KVP scheme, which is compounded on an annual basis. The same interest is being paid on investments made in this scheme after January 1, 2024. Under the scheme, your invested amount doubles in 115 months due to the current interest rate, that is, if you invest today, you will get double the amount after nine years and seven months.
How much can one invest in Kisan Vikas Patra…?
The minimum investment or deposit amount in Kisan Vikas Patra is ₹1000, but there is no maximum limit of investment, and any amount can be invested in multiples of ₹100. More than one account can also be opened in Kisan Vikas Patra.
Who can buy Kisan Vikas Patra…?
Any adult can invest in KVP. A joint account can also be opened in Kisan Vikas Patra, in which a maximum of three adults can participate. Apart from this, the guardian of a minor boy or girl can also invest in Kisan Vikas Patra, and KVP can be purchased in the name of any minor if the age is more than 10 years.
Yes, one important thing to remember about KVP is that unlike PPF and Sukanya Samriddhi Yojana, the interest and maturity amount received under KVP is taxable, that is, you will have to pay income tax on the amount earned on your investment.
Kisan Vikas Patra, or KVP, is one of the small savings schemes run by the government itself. The interest rate for all these schemes is reviewed every quarter. Apart from KVP, these schemes run by India Post include schemes like Public Provident Fund (PPF), Monthly Income Scheme (MIS), Sukanya Samriddhi Yojana (SSA) and National Savings Certificate (NSC).
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