5 min read
Updated on Mar 20, 2023
The key benefit of investing in a Kisan Vikas Patra (KVP) is its attractive and high interest rates as compared to many other saving schemes in the country. With an interest rate of 7.2% applicable in the first quarter of 2023 (January-March), KVP is a lucrative investment scheme for the masses. Let us know the plan better.
Kisan Vikas Patra (KVP) is a plan introduced by the India Post department of government of India in the year 1988. It was introduced as a savings certificate scheme which facilitates small savings among the masses of India over a long term at a good rate of interest. This scheme allows small savings to double at fixed rate of interest after a tenure of over 10 years.
The interested investor can purchase KVP certificates from a post office across India. Besides, these certificates are also available in several government banks. KVP was initially started as an investment opportunity for the farmers in India. However, the plan is now open to all.
Here’s some details:
|Kisan Vikas Patra||Details|
|Rate of Interest||7.2 (Jan-Mar’2023)|
|Minimum Amount||INR 1000|
|Maximum Amount||No Limit|
|Maximum Tenure||124 months|
KVP certificates are of three varied types, such as;
The Union Government has announced the updated KVP Interest Rate for the financial-year 2022-23 on the 30th December, 2022. The KVP current interest rate is fixed at 7.2 % for Jan to Mar quarter of 2023.
The KVP investment is not influenced by the market risks and the interest rate of the scheme is reviewed every quarter, while it gets compounded on an annual basis.
Below is a chart with KVP interest rates of the current and previous years:
|Quarter (Months)||Current FY 2022-23||Previous FY 2021-22||Previous FY 2020-21||Previous FY 2019-20|
|April-June||6.9% (maturity 124 months)||6.9% (maturity 124 months)||6.9% (maturity 124 months)||7.7% (maturity 112 months)|
|July-September||6.9% (maturity 124 months)||6.9% (maturity 124 months)||6.9% (maturity 124 months)||7.6% (maturity 113 months)|
|October-December||6.9% (maturity 124 months)||6.9% (maturity 124 months)||6.9% (maturity 124 months)||7.6% (maturity 113 months)|
|January-March||7.2% (maturity 124 months)||6.9% (maturity 124 months)||6.9% (maturity 124 months)||7.6% (maturity 113 months)|
To Sum Up
KVP is a beneficial scheme for common risk-averse investors looking for safe investment options for their surplus funds with suitable returns. To know the KVP maturity amount, an investor can use a KVP interest calculator, which is easily available online. The investor is required to submit the deposit amount along with the tenure of investment to calculate the maturity amount using KVP calculator.
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Under the KVP scheme, an investor can deposit a minimum amount of INR 1000, while there is no maximum limit of investment.
Yes, the scheme allows investors to transfer the KVP Certificate to a nominee in the event of death of the account holder.
The KVP interest is revised every quarter and is likely to change on a periodic basis. But the interest rate is calculated on an annual compounding basis.
Yes, an investor can close his/her KVP account prematurely only under three circumstances;
By a court’s order
If the account holder dies, or
In case of forfeiture by a pledgee.
No, KVP doesn’t allow any tax benefit and returns received under the plan are taxable. However, once the period of maturity is completed, the TDS is exempted from the amount withdrawn.
The KVP interest rate applicable in the first quarter of 2023 (January-March) is 7.2% and it was announced on December 30, 2022.
The current maturity period of KVP is 10 years and 4 months. An individual can invest a minimum of INR 1000 under the scheme.
The KVP interest rate in today’s time is 7.2 % for quarter Jan- Mar (FY 2022-23).
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