Have you heard about the Kisan Vikas Patra (KVP) scheme offered by the post office? There might be some confusion about who can invest in it.
Everyone is looking to save a lot of what they earn. They decide how much to save based on their income.
But many parents save for their children’s future. For this reason, governments are also taking various schemes.
But mostly known about the schemes brought for girls. But there are many schemes available for boys as well.
It is known that India’s public sector post office ranks first in providing good returns without any risk.
| Name of the scheme | Kisan Vikas Patra Scheme |
|---|---|
| Department | Department Of Posts |
| Interest Rate | 7.5 % compounded annually |
| Amount Invested doubles | 115 months (9 years & 7 months) |
| Minimum Amount for account opening | Rs. 1000/- |
| Maximum Amount | No Maximum Limit. |
Kisan Vikas Patra Scheme
Post offices also offer some special saving schemes for male children. Kisan Vikas Patra Scheme is one of these. Kisan means farmer. KVP is open to all Indian citizens above 18 years old.
- You invest a lump sum amount (minimum Rs. 1,000) in multiples of Rs. 100.
- The current interest rate (as of April 2024) is 7.5%, which is compounded annually.
- The maturity period is around 9.5 years (115 months), where your investment will roughly double.
This scheme can be said to be the best option for those who want to save a small amount. Now let’s know the complete details of this scheme offered by the post office.
This scheme offered by India Post was introduced in 1988. This scheme has been brought to suit the middle class families.
The scheme was introduced to enable parents to invest a fixed amount per year. Candidates must be 18 years of age to join this scheme.
While the minimum investment amount in this scheme is Rs.1000, there is no such thing as a maximum limit.
It earns 7.9 percent interest on the invested amount. And in case of any emergency, you can withdraw the invested amount in advance.
Vikas Patra certificate can be transferred from one post office to another post office. As far as the maturity period is concerned, it has been decided as 10 years and 4 months.
Through this scheme, parents will also have the facility to take a loan at a low interest rate.
Benefits of Kisan Vikas Patra
- Safe and Secure: Backed by the government, so you can be assured about the return of your investment.
- Guaranteed Returns: You know exactly how much you’ll get at maturity, unlike market-linked investments.
- Easy to Invest: No complex procedures involved. Just visit your local post office with KYC documents.
- Taxable Interest: The interest earned is taxable, so keep that in mind.
Things to Consider Before Investing:
- Lock-in Period: The money is locked in for the entire maturity period, with premature closure attracting a penalty.
- Taxable Interest: The interest earned on KVP is taxable.
- Limited Liquidity: You cannot withdraw money easily like a regular savings account.
Is KVP Right for Your Son?
KVP is a good option for long-term savings goals like your son’s education or future needs. However, if you need easy access to the money, it might not be the best fit. Consider your son’s age and your financial goals before making a decision.
Conclusion
KVP is open to everyone, not just boys. Visit your local post office to learn more and see if KVP fits your investment goals.
FAQs
What is Kisan Vikas Patra?
KVP is a safe and secure savings scheme backed by the Government of India. It’s a good fit for people looking to grow their money over a long term with guaranteed returns.
Is Kisan Vikas Patra Right for You?
KVP is a great option for those seeking a low-risk investment with guaranteed returns. However, it’s important to consider the lock-in period (around 9.5 years) and the tax implications before investing.
Who can invest in the Kisan Vikas Patra (KVP) scheme?
The KVP scheme is open to all Indian citizens above 18 years old.
What is the minimum investment amount for KVP?
The minimum investment amount for KVP is Rs. 1,000, in multiples of Rs. 100.
What is the current interest rate for KVP?
As of April 2024, the interest rate for KVP is 7.5%, compounded annually.
What is the maturity period for KVP?
The maturity period for KVP is approximately 9.5 years (115 months), during which your investment will roughly double.
Is KVP suitable for small savings?
Yes, KVP is an excellent option for those looking to save smaller amounts.
Are there any special benefits for KVP investors?
Yes, investors in KVP can avail of low-interest loans and transfer certificates between post offices.
What are the benefits of investing in KVP?
KVP offers safe and secure investment backed by the government, guaranteed returns, and easy investment procedures.
Is the interest earned on KVP taxable?
Yes, the interest earned on KVP is taxable.
What should I consider before investing in KVP?
Consider the lock-in period, taxable interest, and limited liquidity before investing in KVP.
Is KVP suitable for my son’s future savings?
KVP is a good option for long-term savings goals like education or future needs, but consider your son’s age and financial goals before investing.