What are the benefits of Kisan Vikas Patra?

Kisan Vikas Patra is a certificate scheme from the Indian post office. It doubles a one-time investment in a period of approximately 10 years & 4 months (124 months) if you purchase the certificate between 1 July 2021 and 30 September 2021. For instance, a Kisan Vikas Patra for Rs. 5000 will get you a corpus of Rs.

Who is eligible for Kisan Vikas Patra?

Eligibility Criteria to Apply for Kisan Vikas Patra The applicant must be above the age of 18 years. The applicant must be a citizen of India. KVP cannot be purchase by a minor. However, an individual above the age of 18 years can purchase KVP certificates on behalf of a minor.

What is meant by Kisan Vikas Patra?

Definition: The Kisan Vikas Patra is a government small saving scheme offered by the department of posts, which guarantees that the amount invested gets doubled in 110 months, i.e. 9 years and 2 months. Thus, the purpose of Kisan Vikas Patra scheme is to mobilize the savings of the small investors.

Is KVP interest fixed?

Kisan Vikas Patra (KVP) is a savings scheme available at India Post Offices in the form of certificates. It is a fixed rate small savings scheme designed to double your investment after a predetermined period of time (124 months in the currently available issue).

Why KVP was discontinued?

The KVP was launched in 1988 as a saving certificate for farmers. It was, however, discontinued in 2011 after it was used for money laundering purposes. The scheme was re-launched in 2014 with modifications to curb misuse. Now unlike other government-sponsored saving schemes, KVP doesn’t offer any tax benefits.

Is KVP a good option?

KVP promises to almost double your investment in ten years and four months. Applying the Rule of 72, it will take 10.43 years to double your money at the current interest rate of 6.9\%. 5. Assuming the rate remains the same in future as well, it will take 10.5 years for your investments to double.

Can we withdraw KVP?

Kisan Vikas Patra Withdrawals A Kisan Vikas Patra scheme can be closed before maturity. The principal along with the interest can be withdrawn. The period for premature withdrawal of KVP is after 2 years and 6 months from the date of issuance, which is also the lock-in period.