In today’s era, when there are fluctuations in the stock market and many people are confused about their investments, every investor searches for a safe and reliable option. If you also want that your hard-earned money should be completely safe and you get it doubled within the stipulated time, then Kisan Vikas Patra (KVP) scheme of the post office can be a good option for you. This is a scheme run by the Central Government, in which 100 percent government guarantee is available on investment.
Kisan Vikas Patra is a fixed income saving scheme, which is operated through post office. The biggest feature of this scheme is that the amount invested in it automatically doubles after a fixed period. This is the reason why this scheme is especially liked by those people who want guaranteed returns while staying away from risk.
7.5% annual interest
Currently 7.5 percent compound interest is being given on KVP. According to this interest rate, the invested amount doubles in 115 months i.e. about 9 years and 7 months. For example, if an investor invests Rs 1 lakh in Kisan Vikas Patra, he will get Rs 2 lakh on completion of the fixed tenure. Not only this, small investors can also start easily.
How much can I invest?
The minimum investment amount in Kisan Vikas Patra has been kept at Rs 1000, while there is no limit on the maximum investment. If investors wish, they can invest through single account or joint account. Parents can also open a KVP account in the name of their minor child, thereby creating a secure fund for future needs.
Other benefits of the scheme
There are many other benefits of this scheme also. There is 100 percent government guarantee on KVP, due to which the investment remains completely safe. If needed, a loan can also be taken from the bank against the KVP certificate. Additionally, the account can be transferred from one post office to another and nomination facility is also available.
Tax is levied on interest
Although Kisan Vikas Patra is a long term scheme, after completion of two and a half years, partial or complete withdrawal of money can be done under certain conditions. Investors should also keep in mind that the interest received on KVP is taxable, that is, income tax rules are applicable on it.
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