Post office small saving schemes are getting more interest than fixed deposits (FD). You will continue to get 6.9% interest on investing money in the post office Kisan Vikas Patra (KVP) scheme. Let us tell you that the largest bank in the country is paying a maximum of 5.40% interest on SBI fixed deposits. Here we are telling you where you will get more benefit from investing.
Kisan Vikas Patra (KVP)
- Currently, 6.9% interest is being received in the Kisan Vikas Patra (KVP) savings scheme.
- There is no maximum limit to invest in KVP. However, your minimum investment should be 1000 rupees.
- The investor’s age must be at least 18 years. It has the facility of a joint account in addition to a single account.
- Minors may also be included in the scheme, but it will have to be handled by their parents.
- If you want to withdraw your investment, you will have to wait for at least 2.5 years. It has a lock in period of two and a half years.
- Under this, the amount deposited is exempted from tax under Section 80C of the Income Tax Act.
SBI can invest in fixed deposits for 7 days to 10 years
You can make a fixed deposit (FD) in the country’s largest bank State Bank of India (SBI) for 7 days to 10 years. In this bank you are getting 2.9 to 5.4% interest. See here how much interest you will get for SBI for FD for which period.
How much interest is SBI paying on FD
| Period | New rate for common citizens (%) |
| 7 to 45 days | 2.9 |
| 46 to 179 days | 3.9 |
| 180 to 210 days | 4.4 |
| 211 to one year | 4.4 |
| 1 year to less than 2 years | 4.9 |
| 2 years to less than 3 years | 5.1 |
| 3 years to less than 5 years | 5.3 |
Investment is available for 5 years, tax benefit can be availed if
you invest in FD for 5 years, you can avail tax exemption under section 80C of Income Tax Act 1961. You can get tax rebate on investments up to Rs 1.5 under 80C.
You are getting a maximum interest of 6.90% by investing in Kisan Vikas Patra . According to the rule of 72, if you invest money in this scheme, it will take about 10 years and 4 months for the money to double.
SBI fixed deposit is
getting maximum interest of 5.40%, so according to the rule of 72, if you put money in this scheme, then it will take 13 years and 4 months for the money to double.
What is the rule of 72?
Experts consider this to be the most accurate rule, which determines how many days your investment will double. You can think of it as such that if you have selected a special scheme of the bank, where you are getting a percentage of interest annually, then you have to divide 8 in 72 under Rule 72. That is, 72/8 = 9 years, i.e. under this scheme your money will double in 9 years.
