Post Office Scheme - Kisan Vikas Patra


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  • Kisan Vikas Patra (KVP) doubles your money in 7 years and 3 months and also has an advantage of premature withdrawal. 
  • Facility of withdrawl from 2 ½ years.
  • The rate of return is 9.75 per cent, compounded annually. 
  • The minimum investment in KVP is Rs 100. Certificates are available in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000, Rs 10,000 and Rs 50,000. There is no limit on holding of these certificates. Any number of certificates can be purchased.
  • It has a fixed rate of return, although compared to the present interest rates its a good investment option but KVP does not provide safeguards against the perils of high inflation rates.
  • Some banks accept it for raising house loans.
  • This is a risk-free investment channel as the it comes with the backing of the Goverment of India
  • Rebate under section 80 C not admissible.
  • Interest income taxable but no TDS
  • Deposits are exempt from Wealth tax.
  • The option of holding KVP in demat form is not available.
  • Maturity on providing proper identity and by simple discharge of the certificate on the reverse. 

 

Also See

Kisan Vikas Patra

National Savings Certificate

Reccuring Deposit Account

Monthly Income Scheme

 

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