The Kisan Vikas Patra (KVP) scheme is part of nine government-run small savings schemes offered by the post office. Its primary objective is to encourage long-term financial discipline in people. Regardless of market fluctuations, KVP offers guaranteed returns.
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Here are the key features of the KVP scheme:
Eligibility
KVP can be purchased by a single adult or jointly by a maximum of three adults. Minors above 10 years of age can also purchase KVP. It can be bought by an adult on behalf of a minor or a guardian on behalf of a person of unsound mind.
Where to buy
The certificates can be purchased at any departmental post office.
Interest rate
The interest rate applicable on KVP is currently reviewed by the Ministry of Finance on a quarterly basis. For the current quarter of the financial year, investment in KVP fetches interest at the rate of 6.9 percent. For example, the amount invested in KVP certificates doubles in 124 months (10 years and 4 months).
Investment limits
One needs to invest a minimum of Rs 1,000 in the KVP scheme. Investment of any higher amount can be made in multiples of Rs 100. There is no upper limit for investment in the scheme.
Premature withdrawal
Certificates can be encashed after 2 and 1/2 years from the date of issue.
Other options
The facility of a nomination is available and certificates can be transferred from one person to another and from one post office to another.
First Published: Sept 24, 2020 5:22 PM IST
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