KVP Scheme: Money will double with government guarantee, know in how many months the amount will double

Post Office Savings Plan: Kisan Vikas Patra is a great option for Indian investors looking for safe investment and assured returns. It is a small savings scheme supported by the central government and operated through post offices.
This scheme is reliable for people who are away from market risks as it comes with 100% government guarantee. In this, the amount invested gets doubled directly after a stipulated time without any fluctuations.

Interest rate and time to double money

The most attractive feature of Kisan Vikas Patra is its interest rate and time limit for doubling the investment. Currently the government is offering 7.5 percent compound interest annually on this scheme which increases your profits rapidly.

According to this interest rate, if you invest today, your entire amount will double in 115 months i.e. approximately 9 years and 7 months. If you have invested Rs 5 lakh, at the time of maturity you will receive the entire Rs 10 lakh without any risk.

Investment limits and account opening process

People from middle and low income group can also easily start investing in this scheme because the minimum investment amount is only Rs 1000. The special thing is that no upper limit of maximum investment has been fixed, so you can invest any amount of money according to your savings.

You can open a single or joint account by going to any nearest post office. Apart from this, parents can also buy this certificate in the name of their minor children for their future.

Government guarantees and other important benefits

The security offered with the KVP scheme makes it different and better than other private investment options. Since this is a post office scheme, your principal amount and the interest received on it remain completely safe.

If needed, you can also get a loan from banks at a lower interest rate by mortgaging your KVP certificate. Besides, this scheme also provides the facility of nomination and you can easily transfer your account from one post office to another in the country.

Also read: Pre-Approved Personal Loan: Don’t let the money you get in minutes overwhelm you! Keep these things in mind

Tax rules and premature withdrawal

Before investing, it is important to know that the interest received on Kisan Vikas Patra is completely taxable. Although it does not provide tax exemption under Section 80C of the Income Tax Act, its safety and guaranteed returns have kept it popular.

Although this is a long term plan, but in case of emergency, after completion of the lock-in period of two and a half years i.e. 30 months, you can withdraw your deposit with certain conditions.