Kisan Vikas Patra : Investment scheme by postal department

Kisan Vikas Patra (KVP) is one of the nine government-sponsored small savings schemes. Investment in Kisan Vikas Patra certificates in a post office fetches interest on a compound basis.

The amount invested in a KVP account in a post office doubles in a period of 112 months, according to India Post’s website – India Post, under Government of India’s Department of Post, has a network of more than 1.5 lakh post offices across the country.

India Post offers interest rate of 7.7 per cent on Kisan Vikas Patra accounts and the interest is compounded annually. The sum invested gets doubled in 112 months, according to the India Post website.

A minimum of Rs. 1,000 can be invested in a KVP account, and investment in the multiples of Rs. 1,000 is permitted. There is no upper limit applicable to the amount of investment.

A Kisan Vikas Patra account can be opened by an adult for self or on behalf of a minor or by two adults (jointly). The KVP can be purchased at any departmental post office. A nomination facility is available. KVP certificates can be transferred from one person to another, and from one post office to another, according to to India Post.

Investments made under the Kisan Vikas Patra accounts qualify for income tax benefit under Section 80C of the Income Tax Act.

KVP certificates can be encashed after 30 months from the date of issue.

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