Image Source : PTI/FILE PHOTO People stand in long queues at the post office.
Saving and investing money while earning good returns is a goal for many individuals. One such option is the Kisan Vikas Patra (KVP) scheme offered by the Indian Post Office, which guarantees a doubling of the investment in just 115 months. Let’s dive deeper into the features and benefits of this special Post Office scheme.
How Kisan Vikas Patra doubles your investment
Kisan Vikas Patra (KVP) is a risk-free government scheme that promises high returns. The highlight of this plan is that your savings double in just 115 months. The minimum investment is Rs 1,000, and there is no maximum limit, investors can invest as much as they want.
An attractive return for investors
KVP offers an annual interest rate of 7.5 per cent, compounded quarterly. Interest is calculated annually and payments are made to investors when due. Children over the age of 10 can also unlock the scheme, making it a convenient investment for families.
Example: How Rs 5 lakh becomes Rs 10 lakh in KVP
Let’s understand how the money doubles in this system. If an investor invests Rs 5 lakh in agricultural development paper and holds it for the entire period of 115 months, they will get Rs 10 lakh at maturity thanks to 7.5 per cent compound interest. This shows how interest will accumulate to double the initial deposit.
Tax implications and changes in maturity period
It is important to note that the tax will also apply to returns received from KVP. Over the years, the government has adjusted the growing season. Originally set at 123 months, it was reduced to 120 months, and now has 115 months, allowing for a faster return on investment.
Flexible account options in KVP
The Kisan Vikas Patra scheme allows both single and joint accounts to be opened. Additionally, there is no limit to the number of accounts an individual can open, meaning one can open multiple KVP accounts as per their preference.
A safe and profitable investment
The Kisan Vikas Patra scheme offers a safe and guaranteed way to double your money in less than 10 years. With the attractive interest rate, flexible account options, and the ability to invest large sums, this scheme continues to be a popular choice for risk-averse investors.
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