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The interest rate under KVP saving scheme is compounded annually and the sum invested gets doubled in over 10 years and 4 months’ time. A KVP account can be opened with a minimum amount of INR 1,000, whereas there is no maximum limit to be invested under this account. Hence, KVP is one of the best post office schemes to double the money.
KVP is an offering from India Post, the Department of Posts in the country, that has been providing varied investment opportunities. The department has enabled the common man in the country to save money under safe schemes.
For people who do not want to take much risk with their money but at the same time want to secure their future with enough savings, post office schemes serve as a good option to start their investment journey. After all, there are many risk-averse individuals who are apprehensive about investing money in risky avenues like the stock market, bonds etc. The schemes like KVP are good choices for such people as they are lucrative in terms of returns and safe in terms of security. The backing of the government further enhances the guarantee of this post office scheme to double the money.
Below are some details of – Kisan Vikas Patra (KVP) – which was introduced in the year 1988 and is available with a lucrative interest rate of 7.2 per cent.
Investors generally invest in mutual funds and stocks to double their income. However, these schemes are high in terms of risks and may cause huge losses to the investor. This way, you may lose a significant amount of your investment. To avoid this situation of extreme risks, you may choose schemes offered by India Post to enjoy risk-free benefits.
Some Post Office schemes guarantee double money within a particular period. KVP or the Kisan Vikas Patra is one such investment plan that allows a guaranteed double amount of your savings within a specific duration.
KVP or Kisan Vikas Patra is a scheme offered by the post office that doubles your money within a specific duration. 7.5% p.a is the interest rate of the Kisan Vikas Patra for FY 22-23. With this interest rate, investors can double their money in 9 years and 7 months (115 months). KVP account interest is compounded yearly and an investor is eligible for premature withdrawal as per certain conditions.
As per the recent government announcement, the interest rate offered under KVP for the first quarter of 2023 (Jan-Mar) is 7.2 per cent. The rate of interest under this scheme is compounded annually and the investment doubles with a duration of 10 years and 4 months.
As per the India Post eligibility guide, an applicant or an eligible investor of KVP Post Office scheme can be:
There is no restriction in the number of accounts that can be opened under the scheme.
Below are some features of the Post Office KVP scheme to double money:
The deposit under the KVP scheme matures as per the prescribed maturity time by the Ministry of Finance as applicable on the date of deposit. The lock-in period of KVP is 30 months, while the plan matures in 10 years and 4 months’ time.
The investor of a KVP account can close it prematurely any time before maturity. However, there are certain conditions as mentioned below:
The KVP scheme allow the account holder to transfer the account from one beneficiary to another person in case of the below conditions:
Further, it is to be noted that Investors under KVP scheme can use the scheme as collateral to avail loans at comparatively less interest rate.
Below are some rules for transferring a KVP account from one person to another:
KVP or Kisan Vikas Patra is a scheme that makes senior citizens eligible to invest under the plan. In this case, the savings of the elderly doubles within 9.7 years. Besides KVP, senior citizens in India can also invest in SCSS or Senior Citizens Savings Scheme.
Here are some features to note while opening an SCSS Post Office scheme to double the money:
To Sum Up
The post office KVP scheme is an attractive policy to earn good returns on your investment. Further, you can use the post office scheme to double the money calculator to calculate the amount you would earn under this scheme.
Kisan Vikas Patra (KVP) is a plan introduced by the India Post department long back in the year 1988 and it is available with a lucrative interest rate of 7.2 per cent currently.
As per the latest amendments in the KVP scheme, the maturity period of the scheme is over 10 years 4 months and the investment doubles after the completion of the scheme tenure.
There are many investment options offered by the post office that can be availed to double your money in 5 years. However, to double money with KVP, you would have to wait for a period of over 10 years.
There are various investment schemes that can be availed to double money such as ELSS (Equity Linked Savings Scheme), equity-oriented, debt-oriented, balanced mutual funds and safe options like KVP etc. A person should avail the investment facility depending on his/her suitability.
Yes, post offices allow safe avenues of investments with guaranteed Returns. As a government-backed savings scheme, the KVP scheme as well as the post office fixed deposit scheme offer safe options of investment and guaranteed return.
The Post Office KVP scheme has no maximum investment limit. The minimum amount to be invested is INR 1,000.
Once your KVP account reaches maturity, the invested sum along with the interest earned on the amount is deposited in your Post Office savings account or your bank account as per the conditions accepted at the time of opening the account.
Initially, the plan was started keeping in mind the farmers of India. It was later made available to anyone qualifying the required criteria.
9 years and 7 months (115 months) is the total number of months required to double your invested amount under KVP.
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