KVP is a scheme that guarantees doubling of the money. For those people who have extra lump sum money but do not want to take any kind of risk with that money, this scheme can be a very beneficial deal for them.
KVP Post Office Scheme: If you are looking for a better option for long term investment and want to get guaranteed returns, then you will find many good schemes in the post office. Kisan Vikas Patra is one of them. The government started this scheme in the year 1988 with the aim of encouraging long term financial savings.
Initially this scheme was only for farmers, but now any Indian citizen can invest in it. Currently, interest is being given on this scheme at the rate of 7.5 percent. KVP scheme guarantees to double your investment in 115 months i.e. 9 years 7 months. If you invest Rs 5 lakh in this scheme, then after 115 months when it matures, you will get Rs 10 lakh as a return.
How much money can be invested
Investment in KVP can be started with just Rs 1000. There is no maximum investment limit. But if you invest more than Rs 50,000 in it, then it is mandatory for you to provide PAN card. To prevent the possibility of money laundering, the government has made PAN card mandatory for investing more than Rs 50 thousand in Kisan Vikas Patra in 2014. On the other hand, if you want to invest Rs 10 lakh and more, then you may have to give some documents to the post office like salary slip, ITR, bank statements and Aadhaar number.
For whom is the scheme beneficial
For people who have extra lump sum money but do not want to take any risk with that money, and also do not need this money in the near future, Kisan Vikas Patra can prove to be a very good deal.
Who can open an account
Any adult person above 18 years of age can open a single or joint account under this scheme. Apart from this, a child above 10 years of age can take Kisan Vikas Patra in his name. Guardians can open an account on behalf of a minor or a person of unsound mind. NRIs are not allowed to invest in it. While opening an account, documents like Aadhar card, age certificate, passport size photograph, KVP application form etc. may be required.
You can make pre-mature withdrawal of money with some conditions
Premature withdrawal can be done after 2 years and 6 months from the date of depositing the KVP account. However, pre-mature deposits can be made anytime under certain special circumstances such as-
In case of KVP holder or joint account, on death of one or all the account holders
In case of gazette officer, on seizure by mortgagee
On the order of the court
