What is Kisan Vikas Patra?
Kisan Vikas Patra (KVP) is a safe, government-backed savings scheme that guarantees your money will double in a fixed period. It is ideal for conservative investors who want guaranteed returns without market risk. Currently, your investment doubles in exactly 115 months (9 years and 7 months) at 7.5% p.a.
Key Rules & Features
- Guaranteed Doubling: At 7.5% interest, your money doubles in 115 months (9 years 7 months).
- No Upper Limit: Invest any amount starting from ₹1,000 (in multiples of ₹100).
- Lock-in Period: Strict lock-in of 2 years and 6 months (30 months).
- Taxation: Interest earned is fully taxable as "Income from Other Sources". No Section 80C benefit.
- Government Guarantee: 100% capital safety backed by the Government of India.
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KVP vs Other Popular Schemes
| Feature | KVP | Bank FD | PPF |
|---|---|---|---|
| Risk Level | Zero Risk | Low Risk | Zero Risk |
| Guaranteed Doubling | Yes (115 months) | No | No |
| Tax Benefit | None | Only 5-year Tax Saver FD | E, E, E |
| Best For | Doubling idle cash | Short-term parking | Long-term tax-free savings |