Post Office Kisan Vikas Patra Calculation and features: The humble post office near you is probably the only place that can guarantee to double your money. While investments in stocks and mutual funds can also double the money, probably in less time, risks associated with them keep small and vulnerable investors away. This is not the case with small savings schemes offered by the Post Office. The investment in the Small Savings Scheme enjoys sovereign guarantee, i.e. the money deposited in small savings schemes will be returned to the investor by the Government in case of default. So, even if the post office shuts down, the investor would not suffer any loss.
Currently, small savings schemes in the post office are offering higher interest rate as compared to deposit schemes of some of the top banks. Interestingly, post office schemes like Kisan Vikas Patra comes with a declared timeline for doubling the investors’ money.
Double your money
Currently, if you invest Rs 50,000 in KVP today, it will mature and double in 113 months, or 9 years and 5 months.
The minimum amount one can invest in KVP is Rs 1000 and thereon in the multiples of Rs 1000. There is no upper limit of investment.
The interest rate on KVP is 7.6 per cent. This is higher than the interest rates offered on 10-year FDs by SBI and HDFC Bank.
SBI is currently offering 10-year FD at 6.25 per cent, while this rate in HDFC Bank is 6.9 per cent.
Gift KVP certificates
An adult can buy KVP certificate for himself or on behalf of a minor or by two adults from any Departmental Post office. The scheme provides nomination facility.
KVP certificate can be transferred from one person to another and from one post office to another. This means you can gift it to someone else if required.
Moreover, you can encash KVP certificate after 2.5 years from the date of issue.