Small savings schemes are backed by central and state governments. India Post offers nine such small savings schemes such as Public provident fund (PPF), National Savings Certificates (NSC), Recurring Deposit (RD), Kisan Vikas Patra (KVP),
Sukanya Samriddhi Scheme, etc.
Sukanya Samriddhi Scheme, etc.
Among these, Kisan Vikas Patra is a saving scheme that claims to double your invested in nine years and five months or say 113 months. It may be noted that the government has kept the post office saving schemes or small savings schemes interest rates unchanged for the third quarter (October to December). The Kisan Vikas Patrika with a maturity of 113 months will fetch 7.6 per cent.
It may be noted that the government reduced the interest rates on small savings by 0.1 per cent for the July-September quarter.
Key things about Kisan Vikas Patra scheme-
1. Kisan Vikas Patra account can be opened by any individual who is above 18 years, for self or on behalf of a minor. In fact, two adults can open a joint KVP account also. the KVP certificate can be taken from any departmental post office and transferred from one person to another and from one post office to another.
2. The minimum amount required to open a KVP account is Rs 1,000 and one can invest in it in the multiples of Rs 1,000. However, there is no maximum investment limit in this account.
3. It may be noted that KVP doesn't offer any tax benefits. The rate of interest is subject to review and revision by the government every quarter.
4. The Kisan Vikas Patra certificates can be encashed after two and half years or 30 months from the date of issue.
5. In case of premature withdrawal after 30 months, the account holder will get Rs 1,173 for every Rs 1,000 invested. After 3 years, the amount will go up to Rs 1,211 and after three-and-a-half years, the amount would be Rs 1,251.
According to the notification, "On the basis of the decision of the government, interest rates for small savings schemes are notified on a quarterly basis since 1st April 2016. According, the rates of the interest on various small savings schemes for the third quarter of the financial year 2019-20 starting from 1st October, 2019 and ending on 31st December, 2019 shall remain unchanged from those notified for the second quarter (1st July, 2019 to 30th September 2019) of the financial year 2019-20."
