Post Office Scheme: Savings schemes provide a secure alternative, guaranteeing the complete return of the invested sum upon maturity along with the offer of appealing interest rates. A prime example of such a scheme is the Kisan Vikas Patra, widely favoured by investors seeking to multiply their investments through a government-backed initiative.
Government-backed schemes like these are especially appealing to risk-averse investors looking for a secure place to park their substantial financial assets. Additionally, financial experts routinely recommend diversifying investments across different asset classes as a strategic method for both wealth growth and risk management, especially in times of market turbulence.
What is Post Office Kisan Vikas Patra Scheme?
The Kisan Vikas Patra Scheme is a government-backed post office savings certificate initiative in India aimed at doubling your invested capital. It offers an enticing interest rate, making it an attractive choice for investors with substantial funds looking for long-term investments. The Kisan Vikas Patra Yojana is accessible for investment at all post offices and major banks across the nation.
The Kisan Vikas Patra (KVP) interest rate for the period of October to December 2023 stands at 7.5 percent, with annual compounding. Under this scheme, the investment amount doubles over a period of 115 months, equivalent to 9 years and 7 months. For instance, if you were to invest Rs 10 lakh in Kisan Vikas Patra, your investment would grow to Rs 20 lakh in precisely 115 months, accumulating a total interest of Rs 10 lakh.
What is the minimum investment?
Investing in Kisan Vikas Patra (KVP) can begin with a minimum investment of Rs 1,000, and subsequent investments can be made in multiples of Rs 100. There is no maximum limit for investment. Additionally, the KVP can be prematurely closed after a minimum of 2 years and 6 months from the deposit date.
As per the information available on the Post Office website, a KVP account can be opened by a single individual or by up to three adults jointly. The scheme also offers the option to nominate a beneficiary. Children who are 10 years or older have the eligibility to open a KVP account in their own name, while a guardian can open an account on behalf of a minor or a person with unsound mind.