If you’re wondering “how can I double my money safely in India?” — the Post Office Kisan Vikas Patra (KVP) might just be your answer. With a simple investment of ₹10 lakh, this trusted scheme ensures a payout of ₹20 lakh in just under a decade. Backed by the Government of India, KVP is one of the most reliable savings options available today.
The Best Scheme of Post Office
| Feature | Details |
|---|---|
| Scheme Name | Kisan Vikas Patra (KVP) |
| Offered By | India Post, Government of India |
| Interest Rate | 7.5% per annum (compounded annually) |
| Doubling Time | 115 months (9 years and 7 months) |
| Minimum Investment | ₹1,000 |
| Maximum Limit | No upper limit |
| Lock-in Period | 2 years and 6 months |
| Tax Benefits | Interest is taxable, no TDS |
| Where to Apply | India Post |
The Kisan Vikas Patra is a simple, safe, and powerful savings tool for anyone who wants to double their money with zero risk. Whether you’re a senior citizen, a salaried professional, or a small business owner, investing ₹10 lakh today can help you build a ₹20 lakh corpus without worrying about market volatility.
What is Kisan Vikas Patra (KVP)?
Kisan Vikas Patra is a small savings certificate scheme offered by the Indian Post Office. Initially launched to encourage savings in rural areas, KVP has now gained popularity among urban investors too, thanks to its guaranteed returns and low risk.
Your money in this scheme grows steadily at a fixed interest rate of 7.5%, and due to compound interest, it doubles in 115 months. That means if you invest ₹10 lakh today, you’ll get ₹20 lakh after 9 years and 7 months!
see also: Money Will Be Tripled With the Post Office Scheme
How Does KVP Double Your Money?
KVP works on the principle of compound interest, calculated annually. Here’s a simple example:
- Investment: ₹10,00,000
- Interest: 7.5% per annum
- Duration: 115 months (or 9 years and 7 months)
- Returns: ₹20,00,000
Unlike mutual funds or market-linked schemes, your returns are not affected by market volatility.
Real-Life Example:
| Year | Approx. Value of Investment |
|---|---|
| Year 1 | ₹10.75 lakh |
| Year 5 | ₹14.39 lakh |
| Year 10 | ₹20 lakh (Maturity) |
This makes KVP an excellent choice for those looking for long-term, stable growth without taking high risks.
Why This Scheme is Ideal for Conservative Investors
- Government-Backed Security: 100% safe, guaranteed by the Government of India.
- Predictable Returns: Know exactly how much you will get and when.
- No Market Dependency: Immune to stock market ups and downs.
- Flexible Investment Amounts: Start from ₹1,000 and go upwards.
How to Invest in KVP: Step-by-Step Guide
Step 1: Eligibility
Anyone above 18 years can open a KVP account. You can also open it:
- Jointly with another adult
- On behalf of a minor
- Through a guardian for a minor
Step 2: Visit the Post Office
Go to your nearest India Post Office. Carry the following documents:
- Aadhaar Card
- PAN Card
- Passport-size photograph
- Proof of address (utility bill, driving license, etc.)
Step 3: Fill the Application Form
Request a KVP Account Opening Form and fill in your:
- Name, address, PAN
- Nominee details
- Amount to be invested
Step 4: Submit Payment
You can pay via:
- Cash
- Cheque
- Demand draft
- Account transfer (in case of linked PO savings account)
Step 5: Collect Your Certificate
Once the payment is processed, you will receive your KVP certificate either in physical or electronic format (via e-mode).
पोस्ट ऑफिस की इस स्कीम में पैसा होगा दोगुना! ₹10 लाख जमा करें और पाएं ₹20 लाख का जबरदस्त फायदा
Tip: Link your Post Office savings account for better tracking and future investments.
Important Rules and Features
Lock-In Period
You cannot withdraw your money before 2 years and 6 months. After that, premature closure is allowed under specific circumstances like:
- Death of holder
- Court orders
- Forfeiture by a pledgee
Taxation Details
- Interest is taxable under your income slab.
- No Tax Deducted at Source (TDS) is applied.
- No Section 80C benefits.
If you’re in the 30% tax bracket, plan your investment and returns accordingly.
Transfer & Nomination
- You can transfer the certificate from one person to another.
- Nomination facility is available at the time of purchase.
see also: Post Office Scheme: get a chance to earn guaranteed income every month
Is KVP Better Than Bank FDs or Mutual Funds?
| Feature | KVP | Bank FD | Mutual Fund |
|---|---|---|---|
| Interest Rate | 7.5% | 6.5-7.25% | Varies (8-15% avg.) |
| Market Risk | No | No | Yes |
| Lock-in Period | 2.5 years | 5 years (for tax-saving FD) | None/3 years |
| Taxation | Taxable | Taxable | Taxable (based on type) |
Verdict: If you’re looking for certainty, safety, and simplicity, KVP is better than most FDs. However, for higher growth, mutual funds may work better if you’re comfortable with market risks.
Who Should Consider KVP?
- Retirees looking for fixed returns
- Parents planning for children’s future
- Low-risk investors
- First-time investors
- People in rural areas with limited banking access
Best Scheme of Post Office FAQs
Q1: Can I buy KVP online?
No. As of now, KVP is available only through physical Post Offices.
Q2: Can I withdraw money before maturity?
Only after 2 years and 6 months, and under specific circumstances.
Q3: Is there any penalty on early withdrawal?
Yes, but only if withdrawn before the lock-in period. After that, interest is paid proportionately.
Q4: Is interest on KVP tax-free?
No, interest earned is taxable as per your income tax slab.
Q5: Is KVP better than PPF?
Depends. PPF offers tax-free returns and longer tenure (15 years), while KVP doubles your money faster but with taxable interest.
