The Kisan Vikas Patra (KVP) is a savings scheme offered by the Indian Postal Service. It is a low-risk investment scheme that is popular among small investors who are looking for a safe and secure investment option. Here are some key features of the Kisan Vikas Patra scheme:
- Investment: The Kisan Vikas Patra scheme can be started with a minimum investment of Rs. 1,000. There is no maximum investment limit for the scheme.
- Maturity period: The maturity period of the Kisan Vikas Patra scheme is 124 months (10 years and 4 months). However, the investment amount will double after 124 months.
- Interest rate: The interest rate for the Kisan Vikas Patra scheme is decided by the government and is subject to change from time to time. The current interest rate is 6.9% (as of April 2023).
- Tax benefits: Investments made in the Kisan Vikas Patra scheme are eligible for tax benefits under Section 80C of the Income Tax Act, 1961.
- Withdrawal: Premature withdrawal of the KVP is not allowed before the maturity period. However, in certain cases such as death of the investor, the nominee can withdraw the investment before the maturity period.
The Kisan Vikas Patra scheme is a good investment option for those who are looking for a safe and secure investment with moderate returns. However, investors should note that the scheme has a long lock-in period, and premature withdrawal is not allowed.
