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Post Office Scheme can Double your Money: All You Need to Know


Kisan Vikas Patra Scheme: The Kisan Vikas Patra is a scheme launched by the central government available from the Indian Post Office. It is a savings scheme that aims at and promises to double the money of a customer who has invested in it. The scheme also promises guaranteed return to such investors. The Kisan Vikas Patra is one of the many small savings scheme that is backed by the Centre. An investor can double his or her capital amount within a period of 124 months (10 years and four months) for investing in Kisan Vikas Patra and issuing a certificate between July 1, 2021 and September 30, 2021.

The interest rate for the Kisan Vikas Patra has not changed off late, and currently stands at 6.9 per cent per annum. This is because the central government has kept the interest rates for small savings scheme unchanged for a while now. According to the India Post website, this scheme of the post office has a maturity period of 124 months, over which the investor’s money will get doubled. “Amount Invested (in KVP) doubles in 124 months,” the website claims.

Here is everything you need to know about the Post Office’s Kisan Vikas Patra

– Investors can deposit a minimum amount of Rs 1,000 and in multiples of Rs 100 thereof. There is no upper cap to the amount of depositing.

– Any Indian citizen can open a Kisan Vikas Patra account. Any person above the age of 18 can go to the post office and purchase a certificate for this.

– A minor can open a joint account with an adult for the scheme. A maximum of three adults can participate in one joint account.

– One person can open as many KVP accounts as he or she wants as there is no bar on this number

-KVP may be pledged or transferred as security, by submitting prescribed application form at concerned Post Office supported with acceptance letter from the pledgee. One person can transfer the account from one post office to another. The account can be transferred from one person to another as well.

– The rate of interest in case of Kisan Vikas Patra was reduced from 7.6 per cent to 6.9 per cent in April to June 2020 and has remained constant to date. This was done amid the onset of the Covid-19 pandemic.

– While KVPs can be opened by a Trust, a HUF or NRI canot open this type of accounts at the post office.

– KVP may be prematurely closed any time before maturity if a person having a single account dies, or all the persons holding a joint account pass away. They can also be closed on the forfeiture by a pledgee being a Gazette officer. Alternatively, KVPs can be closed after two and a half years from opening the account.

– A Kisan Vikas Patra account promises an investor of guaranteed returns despite market fluctuations, unlike the share market. This is because the scheme was originally intended for farmers to encourage them to save before rainy season.

– KVP is a safe investment and is not subject to market risks. An investor will get the investment and gains when the tenure ends.

– The Kisan Vikas Patra scheme does not come under the ambit of the 80C deductions. This means that the returns are totally taxable. However,  Tax Deducted at Source (TDS) is exempt from withdrawals when the maturity period ends.

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