Overview of Kisan Vikas Patra Scheme
Kisan Vikas Patra is an India Post initiative. Essentially a lucrative savings scheme, it was introduced in the year 1988 backed by government. It got quite a positive response in the initial months but later the Government of India formed a special commission under the command of Ms. Shayamla Gopinath. They strongly recommended to the government that this is a system that could be easily misused. Thus the Government of India reached a decision to scrap off the scheme altogether and did so in 2011. But the new Government formed in 2014 had another idea. They relaunched this scheme with slight alterations in the same year.
Features & Benefits of Kisan Vikas Patra:
- KVP can be bought by any Indian citizen with a regular income, jointly (with spouse) on on behalf of a minor.
- The money put in will be doubled in 8 years and 7 months.
- You can put in denominations of INR 1000, 5000, 10000 and 50000 with INR 1000 as the minimum deposit requirement.
- You can get one on behalf of a minor.
- KVP can be bought from any Post office.
- You can make use of the nomination facility.
- It can be easily transferred from one post office to another and individual to individual.
- Certificate you have can be cashed after two years and six months without penalty.
- A trust can apply for it provided that it meets the KVP guidelines.
- It is not designed for business institutions or NGOs.
Kisan Vikas Patra (KVP) Calculator
Kisan Vikas Patra interest is such that the value of the Kisan Vikas Patra grows twofold in a matter of mere eight years and seven months. The only hitch, albeit slight, is that the income thus assimilated from Kisan Vikas Patra interest will be taxed. But the applicable tax is not deducted at source and the entire amount can be availed by the account holder of the KVP. Investing in Kisan Vikas Patra is not accountable for wealth tax though. KVP interest rate entices the middle class depositor who are forever on the lookout of safe and transparent investment options such as these. You also have an online Kisan Vikas Patra calculator detailing the money you can earn in a stipulated time.
Kisan Vikas Patra (KVP) Calculator & Interest Rate Chart:
|KVP Calculator & Interest Rate Chart (Min INR 1000)|
|Year Wise Assimilated Returns||From 15 Jan 2000 to 28 Feb 2001||From 1 Mar 2001 to 28 Feb 2002||From 3 Mar 2002 to 28 Feb 2003||Post 1 March 2003|
|1st Year||Not Applicable||Not Applicable||Not Applicable||Not Applicable|
|2nd Year||Not Applicable||Not Applicable||Not Applicable||Not Applicable|
|2 Years & 6 Months||1246||1209||1195||1170.51|
|3 Years & 6 Months||1407||1327||1305||1267.19|
|4 Years & 6 Months||1585||1470||1439||1355.9|
|5 Years & 6 Months||1779||1644||1602||1488.49|
|6 Years & 6 Months||2000||1857||1800||1649.13|
|7 Years||Not Applicable||Not Applicable||1883||1713.82|
|7 Years & 3 Months||Not Applicable||2000||Not Applicable||Not Applicable|
|7 Years & 6 Months||Not Applicable||Not Applicable||Not Applicable||1781.06|
|7 Years & 8 Months||Not Applicable||Not Applicable||2000||Not Applicable|
|8 Years and 8 Years 7 Months||Not Applicable||Not Applicable||Not Applicable||1850.93|
|8 Years & 7 Months||Not Applicable||Not Applicable||Not Applicable||2000|
|More than above||Not Applicable||Not Applicable||Not Applicable||Not Applicable|