Invest in Kisan Vikas Patra (KVP) and double your money in 10 years and 3 months i.e 123 months. KVP is a Small Savings Scheme offered by Indian Post Office. KVP Benefits. KVP Eligibility. How to apply?
KVP was first launched in 1988 by India Post. It was successful in the early months but afterwards the Government of India closed it on recommendation of Shyamala Gopinath committee in 2011 and the new government re-launched it in 2014.
Benefits
- As it is a government backed scheme money invested is safe and secured.
- Investment is not affected by market risks as it offers fixed rate of interest.
KVP Interest rates
- Interest rate is decided by Finance Ministry, Interest rate may change.
- Interest rate may change on quarterly basis, present rate of interest is 7% per annum.
Tax Benefits of KVP
There are no tax benefits available on KVP.
Maturity Period
As KVP is a small saving scheme which is exclusively made to double the principle. Its Maturity period depends on the interest rate. More the the Interest rate less will be the Maturity Period. Presently the interest rate is 6.9% hence the maturity period becomes 10 years and 3 months or 123 months.
How to Apply
- To apply to this scheme applicant has to visit the nearby Post Office.
- Fill the application form and submit it.
- Payments are done in Post office itself.
- Link to download application form: https://www.indiapost.gov.in/VAS/DOP_PDFFiles/Savings%20Bank/Kisan%20Vikas%20Patra%20Scheme%20%202019%20English.pdf
Deposit
- A minimum of one thousand rupees and then any sum in multiples of one hundred rupees.
- There shall be no maximum limit for deposit in an account or in accounts held by an account holder.
- An individual may open any number of accounts.
Premature closing
Here are some conditions on which a KVP account can be closed prematurely:
- The account may be prematurely closed by the account holder by making an application to concerned post office, at any time before maturity under the following circumstances:
- On the death of the account holder in a single account, or any or all the account holders in a joint account.
- On forfeiture by a pledgee, being a Gazetted Officer.
- Whenever ordered by a court.
- On the closure of the account, principal amount alongwith simple interest calculated at the rate applicable from time to time to Post Office Savings Account for the complete months for which the account has been held, shall be payable.
Payments after the death of account holder
- In the event of death of the depositor of a single account or of all the depositors in a joint account, the deposit shall be payable to the nominee if a nomination exists or to the legal heir.
- Where there are not more than three surviving nominees or legal heirs, they may, at their option continue the account and receive the amount of deposit alongwith interest on maturity in the manner provided for in this scheme, as if they had opened the account themselves.
- Where the account is not continued under, it shall be closed and the amount of deposit along with interest shall be repaid.
- On the death of one or two of the account holders in a joint account, the surviving account holder or holders, if any, shall be treated as the owner or owners of the account and such account holder or holders may continue the account or close the account.
Transfer of an Account
An account may be transferred from one individual to another, subject to the condition that the transferee is eligible to open an account under this Scheme, in the following cases:-
- On the death of the account holder in case of a single account or on the death of all the account holders in a joint account, the amount shall be transferred to the legal heirs or the nominees.
- On the order of the court, the account shall be transferred from the account holder to the court or to any other individual as per the orders of the court.
- On pledging, account shall be transferred in accordance.
- In the event of the death of any of the account holders in a joint account, the account shall be transferred in the name of the surviving account holder or account holders.