Kisan Vikas Patra saving certificate scheme is among the most sought-after schemes offered by the Indian post office.
The certificate scheme draws the attention of investors by offering to double one-time investment within a tenure of 124 months. The key reasons behind the popularity are the sovereign guarantee. As the name suggests, the Kisan Vikas Patra was initially designed for the farmers. However, the scheme is now available for all who pass the eligibility criteria.
KISAN VIKAS PATRA NEW INTEREST 2021
| Quarter/Financial Year | April-June |
|---|---|
| 2017-2018 | 7.6% (will mature in 113 months) |
| 2018-2019 | 7.3% (will mature in 118 months) |
| 2019-2020 | 7.7% (will mature in 112 months) |
| 2020-2021 | 6.9% (will mature in 124 months) |
Types of Certificates Available
A Kisan Vikas Patra certificate can be of the following types:
- Single Holder Type Certificate: This kind of certificate is issued to an adult for self or on behalf of a minor or to a minor.
- Joint ‘A’ Type Certificate: This type of certificate is issued jointly to two adults, payable to both the holders jointly or to the survivor.
- Joint ‘B’ Type Certificate: This type of certificate is issued jointly to two adults, payable to either of the holders or to the survivor.
Features of Indira Kisan Vikas Patra Scheme
Here are some of the main features of the Kisan Vikas Patra Account:
1. ACCOUNT
Any Indian Resident above the age of 18 can open a Kisan Vikas Patra or Indira Vikas patra Account with a post office or any registered bank.
A Joint Account can also be opened with a maximum of 3 adult joint holders
2. INVESTMENT LIMITS
Only a Lump-sum investment or a single payment is allowed for the deposit in the account.
The minimum amount that can be invested is Rs.1000 and then in multiples of 100. There is no limit on the maximum amount that can be invested.
3. DISCLOSURE OF DOCUMENTS
To prevent any kind of money laundering activities, the government made it mandatory for individuals investing above Rs.50,000 to present their PAN Card details.
Also, investments of above Rs.10 lacs requires the individuals to disclose their income sources.
4. RETURNS
The returns or interest rates on this scheme have been designed in such a way that it would double your investments in a specified period. Investments made in the current Quarter of April to June will fetch 6.9% interest compounded annually and therefore, doubling the investment in 124 months.
If no withdrawal has been made after the maturity of the scheme, then the Post office savings rate at simple interest will be accrued to the amount payable but for a maximum period of 3 years.
5. KISAN VIKAS PATRA MATURITY
The maturity period of the Kisan Vikas Patra yojana is subject to revisions by the government of India. Currently, the maturity period is 124 months with the KVP interest rate at 6.90% for Quarter 1 of FY 2020-21.
Kisan Vikas Patra Benefits
Some of those benefits are explained here :
- Guaranteed returns as KVP certificate is a government-backed instrument.
- Long-term wealth creation as a Kisan Vikas Patra allows you to stay invested for close to 10 years and doubles your money.
- Flexible investment instrument as there is no upper cap on KVP.
- Kisan Vikas Patra can be used as collateral for securing loans at preferred rates from banks.
- Transferable from one person to another as well as from one post office to another.
