Post Office Scheme: Many such schemes are run by the Post Office, one of which is Kisan Vikas Patra. Investors can get safe and guaranteed returns by investing money in this scheme.
Post Office Scheme: It is the desire of every investor to double the money as soon as he invests. Efforts are made to find the best scheme. But in this matter, it is important to take care that it does not burn a hole in your pocket. Well, there are many such schemes, which can not only double your money (Money double scheme) with guarantee, but also give assurance of security. You will just need some patience. Many such schemes are run by the Post Office, one of which is Kisan Vikas Patra. Investors can get safe and guaranteed returns by investing money in this scheme. Currently, this scheme is offering annual interest at the rate of 7.5%. Let us know about this scheme.
What is Kisan Vikas Patra (KVP)?
Kisan Vikas Patra is a lump sum investment scheme run by the Government of India. In this scheme you can double your money within a fixed period. Kisan Vikas Patra Yojana is available for investment in all post offices and big banks of the country. This scheme has been specially designed for farmers, so that they can save their money on a long term basis. The minimum investment in this is Rs 1000. There is no limit on maximum investment.
How much time will it take for the money to double?
By investing in this scheme, you are getting returns at the rate of 7.5 percent per annum. Last year, in April 2023, its interest rates were increased from 7.2% to 7.5%. From January 2023 to March 2023, it was taking 120 months for the money to double in this scheme. But after this, your money will double in five months before that i.e. in 115 months i.e. 9 years and 7 months.
How will Rs 5 lakh become Rs 10 lakh?
So according to the current interest rate, if you invest Rs 5 lakh in this scheme today, you will get Rs 10 lakh back in the next 115 months i.e. 9 years and 7 months. That means you will earn Rs 5 lakh directly from interest. If you invest Rs 4 lakh in lump sum in the scheme, you will get back Rs 8 lakh in 115 months. The good thing is that you also get the benefit of compounding interest in this scheme. That means you earn interest on interest also.
There is a discount on opening accounts
You can start investing in Kisan Vikas Patra with just Rs 1000. After this investment can be made in multiples of Rs 100. Any number of accounts can be opened under the scheme. Account can be opened by single person or 3 adults together can open a joint account. Nominee facility is also available in this. Children above 10 years of age can open KVP account in their own name. A guardian can open an account on behalf of a minor or a person of unsound mind.
If you want to close KVP account
You account can be prematurely closed after 2 years and 6 months from the date of deposit. KVP can be closed on the death of a single account or death of any or all the account holders in a joint account, on seizure by the mortgagee being a Gazette Office Officer and when ordered by the Court. By submitting the application along with the pledgee’s acceptance letter to the concerned post office, the account can be mortgaged or it can also be transferred as security.
Is there tax on KVP?
Finally, let us tell you that you have to pay tax on the interest received from Kisan Vikas Patra Scheme. The interest of this scheme comes under taxable income and at the time of ITR filing you have to show it under ‘Income from other sources’.
