Kisan Vikas Patra (KVP) is a post office savings scheme launched by the Indian government in 1988. Initially, the scheme was intended to encourage farmers to save money and invest in a safe and profitable investment alternative. KVP is a popular investment option for many people looking for a long-term investment option with guaranteed profits.
KVP is available in denominations of Rs. 1000, Rs. 5000, Rs. 10,000, and Rs. 50,000 and can be acquired at any post office in India. The scheme includes a 2.5-year lock-in period, which implies that funds invested in KVP cannot be withdrawn before the maturity period. The interest rate on KVP changes and is set by the Government of India from time to time. As of April 2023, the interest rate being given on KVP is 7.5% annually.
The fact that KVP gives a guaranteed return on investment is one of the biggest benefits of doing so. When interest is generated on KVP, it is compounded annually, which means that the principal is increased by the interest from the previous year and interest is then computed on the increased principal. At maturity, this results in better returns.
KVP is a low-risk investment option, which is an additional advantage of investing in it. The Government of India is backing the investment, thus there is very little possibility of default. For those who want to invest but are worried about taking on too much risk, KVP is a great option.
The KVP application form must be filled out in person at the closest post office before making an investment in KVP. Aadhaar, PAN, and residence verification documents are required for the application. The KVP certificate will be issued on the spot, and the investment amount must be paid in cash. The certificate must be stored securely since it must be provided when the child reaches adulthood.
In conclusion, the post office savings program known as Kisan Vikas Patra (KVP) provides a safe and lucrative investment choice. The program promises a guaranteed return on investment and is backed by the Indian government. KVP is an ideal investment option for individuals who are risk-averse and want to invest in a low-risk investment option. To invest in KVP, one needs to visit the nearest post office and fill in the KVP application form. The investment amount needs to be paid in cash, and the KVP certificate will be issued on the spot.
Here is the video that you should watch for full information about Kisan Vikas Patra: