At present, compound interest of 6.9 per cent is available on Kisan Vikas Patra. Your money invested in this scheme becomes double in 124 months.
New Delhi. There are many types of post office schemes in which lakhs of people of the country invest. There is no risk of any kind by investing here. It also gives great returns. This is the reason why the number of people investing in post office schemes has increased. If you want to invest money in a government scheme for a long time and also want to avoid risk, then the Kisan Vikas Patra scheme of the post office can be a good option for you.
Investing in the Kisan Vikas Patra of the Post Office gives great returns. This is a double money scheme of the Government of India where you get an interest rate of 6.9 per cent per annum and it doubles in 124 months (10 years and 4 months). This scheme is available through most of the post offices in India.
What is Kisan Vikas Patra Scheme?
Kisan Vikas Patra (KVP) is a savings scheme provided by the Government of India. The KVP scheme offers substantial returns on the completion of its maturity period through high interest rates. This risk free investment scheme by the Government of India encourages its citizens to make long term savings.
Who can invest?
Any citizen of 18 years of age or above can invest in Kisan Vikas Patra. In this, the minimum investment amount is Rs 1000 and no limit has been fixed for the maximum investment. In Kisan Vikas Patra, any adult account can be opened on behalf of a minor below the age of 10 years. As soon as the minor attains the age of 10 years, the account is made in his name. Not only this, three people of the age of 18 years or more can also open a joint account.
Tax to be paid on return
If someone returns this scheme within a year of purchase, then he does not get the benefit of any kind of interest. This scheme of post office does not come under Income Tax Act 80c. Therefore, tax has to be paid on the return earned on the investment amount. However, TDS is not deducted in this scheme.
