Post Office Small Savings Scheme: India Post offers nine such schemes at designated post office branches
India Post currently offers interest at the rate of 7.6 per cent on investment in the Kisan Vikas Patra (KVP) savings scheme at designated post office branches. The interest rates applicable to small savings schemes such as Kisan Vikas Patra are currently reviewed by the Ministry of Finance on a quarterly basis. For the quarter ending December 31 – the third quarter of the current financial year, the finance ministry retained the interest rates at existing levels in September 2019. KVP is part of the nine government-run small savings schemes.
Here are details of the interest rate and investment limits applicable to the Kisan Vikas Patra (KVP) small savings scheme:
Rate Of Return
For the third quarter of current financial year, investment in the Kisan Vikas Patra scheme fetches interest at the rate of 7.6 per cent. For example, the amount invested in KVP certificates is doubled in a period of 113 months (nine years and five months).
For opening an account under the KVP scheme, one needs to invest a minimum of Rs 1,000, according to the India Post website – indiapost.gov.in. Investment of any higher amount can be made in the multiple of Rs 100. There is no upper limit for investment in the Kisan Vikas Patra scheme.
Where To Buy
The certificates can be purchased from any departmental post office.
A nomination facility is available for investment in KVP certificates, according to the India Post website.
Mode Of Operation
The Kisan Vikas Patra certificates can be transferred from one person to another after purchase, and also from one post office to another. Investment can be made in favour of an adult for self, a minor, or two adults (jointly).
One can encash the amount invested in KVP certificates after a period of two and a half years from the date of purchase.
Source: NDTV Profit