Kisan Vikas Patra Explained
Kisan Vikas Patra (KVP) is a government-backed savings scheme from India Post that guarantees double your investment in 115 months (9 years 7 months) at 7.5% p.a. interest - Circular No. 12/2024.
₹10,000 becomes ₹20,000 in 9Y7M - track growth with our KVP Calculator
Key Features of KVP
Guaranteed Returns
Fixed 7.5% annual interest
Compounded yearly since 1988Capital Protection
100% government-backed security
No market risk exposureLiquidity Options
Loan collateral after 30 months
Withdrawal with 1% penaltyHistorical Evolution
| Year | Interest Rate | Key Update |
|---|---|---|
| 2024-25 | 7.5% | New e-KVP digital interface |
| 2020-21 | 7.0% | Introduced TDS provisions |
| 2014-15 | 8.7% | Restarted after 2011 discontinuation |
Historical data sourced from RBI archives
KVP vs Other Schemes
vs Fixed Deposit
- Higher returns (7.5% vs 6.5-7.25%)
- Fixed tenure vs flexible FD terms
- No TDS up to ₹40,000 interest
vs PPF
- Shorter lock-in (9Y7M vs 15Y)
- Lower returns (7.5% vs 7.1% PPF)
- Non-taxable vs taxable interest
Who Can Invest?
- Individual Indian residents
- Joint holders (max 3 adults)
- Minors via guardians
NRIs and HUFs not eligible under FEMA rules
How KVP Works
- Purchase certificate at post office/bank
- Interest compounds annually
- Maturity amount paid in 115 months
- Transferable to family members
Investment Journey Example
₹50,000 invested today →
₹1,00,000 received in 2033
Tax Implications
Interest is taxable under:
- Section 80C benefits not applicable
- TDS applies if interest > ₹40,000/year
- Declare under "Income from Other Sources"
Consult your CA for ITR filing guidance
Required Documents
Identity Proof
Aadhaar/PAN/Voter ID
Address Proof
Utility bill/Passport
Other Requirements
2 passport photos
Bank account details
Why Choose KVP?
- Sovereign guarantee from GoI
- Predictable retirement planning
- Available at 1.5 lakh+ post offices
- No maximum investment limit
Start your KVP journey with our KVP Calculator - 100% aligned with NSI guidelines
Important Notes
- Interest taxable as per IT Act, 1961
- Not inflation-indexed like NSC
- Physical certificates carry ₹50 issuance fee
Information verified against India Post's July 2024 circulars. Consult financial advisor for personal planning.