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Want To Double Your Investment In 10 Years? Deposit In Govt-Supported Kisan Vikas Patra Scheme; Details


Interest rates on the small savings schemes are going to be revised by the end of this week. One such scheme is Kisan Vikas Patra (KVP), which was launched in the year 1988 by India Post. The instrument is backed by the government. The KVP currently offers 6.9 per cent per annum interest on savings and has a maturity period of 10 years and 4 months (124 months in total). The amount invested in the scheme doubles during the maturity period.

The scheme, which can be joined by any Indian adult in his own name or on behalf of a minor and three adults jointly, can be availed of at post office branches as well as online. For online, one needs to visit the India Post website or login to internet banking. Select ‘Kisan Vikas Patra (KVP)’ and download the KVP Form A. After filling it, submit it along with documents to the bank/ post office along with the KYC documents.

Depositors can invest a minimum of Rs 1,000 and any sum in multiple of Rs 100 may be deposited in an account. There is no maximum limit for the purchase of the certificates. Though Kisan Vikas Patra was first launched in 1988, it was relaunched in 2014 with a number of changes including mandatory PAN card proof for investments over Rs 50,000 and income source proof for investments exceeding Rs 10 lakh.

No income tax benefit is available under the scheme. However, the deposits are exempt from Tax Deduction at Source (TDS) at the time of withdrawal. Though the scheme has a maturity period of 124 months, certificates can be encashed after two and a half years (30 months) from the date of issue.

Kisan Vikas Patra certificates are transferrable from person to person, from one post office to another one, anywhere in India.

Non-resident Indians are not eligible to purchase Kisan Vikas Patra as there is no such provision in the rules. The Karta on behalf of the Hindu Undivided Family is also not eligible to purchase Kisan Vikas Patra as there is no such provision in the rules.

Interest rates on small savings schemes, including PPF, Sukanya Samriddhi Yojana and Senior Citizens Savings Scheme, have remained unchanged since the first quarter of 2020-21. Now, as the interest rates are rising in the country, saving instruments like fixed deposits (FD) are offering increased rates than earlier. The interest rates on small savings schemes will be reviewed by the end of this week, for October-December 2022.

Interest rates on small saving schemes are reviewed on a quarterly basis. The revision happens in line with the movement in benchmark government bonds. The interest rates for October-December 2022 will be decided by the end of this month.

In the previous review, the government kept the interest rates unchanged for the July-September 2022 quarter. The finance ministry had said, “The rates of interest on various small savings schemes for the second quarter of the financial year 2022-23, starting from July 1, 2022, and ending on September 30, 2022, shall remain unchanged from those notified for the first quarter (April 1, 2022, to June 30, 2022) for FY 2022-23.”

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