India Post or Department of Posts, the postal system of the country, provides a range of services. The Department of Posts offers nine savings schemes with different interest rates. Interest rates on post office saving schemes move in line with the government’s interest rates on small savings schemes, which are revised on a quarterly basis. One such savings scheme offered by India Post is Kisan Vikas Patra (KVP), according to its official website, indiapost.gov.in. KVP offers an interest rate of 7.6 per cent.
Here are details of eligibility, interest rates, tenure and amount applicable to post office Kisan Vikas Patra (KVP) account:
1. Eligibility: A Kisan Vikas Patra account can be opened by an adult for self or on behalf of a minor or by two adults and it can be purchased at any departmental post office.
2. Amount: A minimum of Rs. 1,000 can be invested in a KVP account. However, investments should be made in the multiples of Rs. 1,000. There is no upper limit applicable to the amount of investment.
3. Interest rate: Department of posts currently offer interest rate of 7.6 per cent on Kisan Vikas Patra account, which is compounded annually. The sum invested gets doubled in 112 months, according to India Post.
4. Minimum tenure: KVP has a minimum lock-in period of two-and-a-half years from the date of issue. This means investors can liquidate the amount only after this period.
5. Other facilities: Post office Kisan Vikas Patra (KVP) certificates can be transferred from one person to another and from one post office to another. It also offers a nomination facility