All earning individuals like to invest in a financial instrument that would fetch them a guaranteed amount in their old age. One such instrument is the Kisan Vikas Patra (KVP) scheme by the Post Office of India – it is a scheme where your money is safe and you will get double returns on maturity. 

The KVP is a one-time investment scheme by the Government of India, where your money is doubled in a fixed period. The KVP scheme is present in all Post offices across the country and big banks of the country. 

What is Kisan Vikas Patra?

India Post introduced the Kisan Vikas Patra as a small saving certificate scheme in 1988. Its primary objective is to encourage long-term financial discipline in people. As per the latest update, the tenure for the scheme is now 124 months (10 years & 4 months) if you purchase the certificate between 1 July 2021 and 30 September 2021. The minimum investment amount is Rs. 1000 and there is no upper limit. And if you invest a lump sum amount today, you can get double the amount at the end of the 124th month.

Initially, it was meant for farmers to enable them to save for the long term, and hence the name. Now it is available for all.
To prevent the possibility of money laundering, the government in 2014 made PAN Card proof compulsory for investments above Rs. 50,000. To deposit Rs. 10 lakhs and above, you must submit income proofs (salary slips, bank statement, ITR document, etc.). It is a low-risk savings platform, where you can safely park your money for a certain period.

In this post office investment scheme, the investors not only get better returns but also get the benefit of government security on investment. Along with this, the KVP scheme also claims that you will double your money after investing 10 years and 4 months (124 months) under it.

This scheme is available in all Post offices across the country and big banks of the country.  As per updates, the maturity period of this scheme is 124 months and the minimum investment in this scheme is Rs 1000 and there is no maximum limit. Mainly formulated for farmers, KVP is also for people with low incomes so that they can save their money for a long time.

As per the plan, you just need to invest at least Rs 1,000 to buy a KVP certificate. Investment in this post office scheme can be done in multiples of Rs 1,000 only and there is no upper limit on investment under it. However, for any investment above Rs 50,000, the investor has to provide his PAN card details.

Kisan Vikas Patra: Interest Rate

As per this post office scheme, at present, investors get the benefit of a 6.9 percent interest rate. This is compounded annually.

Kisan Vikas Patra: who can invest

Any Indian citizen who is above 18 years of age can invest in this scheme. There is no upper age limit prescribed for this. The Kisan Vikas Patra can also be bought in the name of a minor. However, NRI is not eligible for this scheme.

Kisan Vikas Patra: How to open an account

For Kisan Vikas Patra Scheme, one has to go to the post office. The applicant must have an identity card such as Aadhar Card, PAN Card, Voter ID Card, Driving License, and Passport. In this scheme, the account can be opened in both single and joint modes. At the same time, parents can also get an account opened for their young children.