Is it safe to invest in KVP?

Kisan Vikas Patra KVP is a secure investment scheme introduced and regulated by the Post Office of India and the Central Government. The funds raised through this scheme are used by the Government of India for the farmer’s welfare and development.

Which is better PPF or KVP?

In other words, anyone looking for an investment that offers long-term stability and minimum risk retention should opt for KVP. On the other hand, if you prefer flexibility and higher returns, then you should opt for PPF. Furthermore, an investor can double his amount within nine years and five months.

Who should invest in KVP?

Under different types of certificates, Kisan Vikas Patra can be purchased on behalf of a minor, in the name of the applicant or jointly by two individuals. KVP can be purchased by a trust. NRIs (Non-Residents of India) and Hindu Undivided Family (HUF) are not eligible to invest in KVP.

Is KVP scheme a good investment option?

KVP Scheme may be a viable investment option for risk-averse investors. However, when compared to NSC, PPF and some other Small Savings Schemes, KVP is not a very attractive investment option. Moreover, tax benefit is not available under the KVP scheme. Any Resident Individual for himself (18 years of age or above) or on behalf of a minor.

Why should KVP be reintroduced?

The scheme is mainly targeted at the Individuals who do not have access to proper banking facilities and financial intermediaries. One more reason for re-introduction of KVP is to dissuade lower income group individuals from falling for any ponzi schemes and losing their hard earned money.

What is the effective interest rate for Kisan Vikas Patra (KVP)?

You will receive the investment and gains when the tenure ends. The effective interest rate for Kisan Vikas patra varies depending on the number of years invested in KVP at the time of purchase. The current interest rate is 6.9\% p.a. for the quarter starting from 1 July 2021 to 30 September 2021, compounded yearly.

What is the rate of interest on KVP certificate?

The rate is applicable on certificate purchased between 1 st April, 2020 and 30 th June, 2020. In the previous Quarter, interest on KVP was 7.6\% and tenure of the scheme was 113 months (9 years & 5 months).