Post Office Kisan Vikas Patra scheme: When it comes to safe investment and strong returns, small savings schemes run by the Post Office are quite popular. The key highlight is that even small savings can accumulate into a substantial corpus. What’s more, there is one government scheme where a one-time investment doubles by maturity.
We are talking about the Post Office Kisan Vikas Patra scheme, where investing ₹5 lakh can fetch you ₹10 lakh. Let’s understand the complete math behind it. In today’s times, everyone plans to save a portion of their earnings and invest it where they can get strong returns.
In this regard, the Post Office Kisan Vikas Patra scheme can prove to be an excellent option. This is because it is a Post Office money-doubling scheme. It is a one-time investment scheme, meaning you only need to invest once, and the amount doubles by maturity.
What Is the Post Office KVP Scheme?
The Post Office Kisan Vikas Patra (KVP) scheme is meant for investors who want safe investment along with good returns over the long term. In this scheme, after a one-time investment, the amount doubles by maturity.
Government-Guaranteed Investment
Investment in Post Office small savings schemes is considered safe. This is because the responsibility for protecting the investment in these schemes lies with the government.
7.5% Interest and 115-Month Maturity Period
The Kisan Vikas Patra scheme currently offers 7.5% annual interest. The investment tenure is 9 years and 7 months, totaling 115 months. During this period, the invested amount keeps growing through compounding.
The Math Behind Turning ₹5 Lakh into ₹10 Lakh
If an investor makes a lump sum investment of ₹5 lakh in KVP, the amount can grow to ₹10 lakh by maturity. Due to compounding, interest keeps getting added to the principal every year, and over time, the fund doubles.
You Can Start Investing with Just ₹1,000
The minimum investment required to open an account under the KVP scheme is ₹1,000. There is no upper limit on the maximum investment. Investors can put in money as per their requirements.
Single and Joint Account Facility
Under Kisan Vikas Patra, investors can open a single or joint account. Besides, parents can also open an account in the name of children above 10 years of age.
Know the Rules Before Withdrawing Money
After investing in the KVP scheme, withdrawal is not permitted before completing 2.5 years, or 30 months. The account can be opened at a Post Office or a public sector bank.
