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.
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 |
KVP Maturity (Doubling) Formula
KVP guarantees your investment doubles in a fixed number of months, which the Government notifies each quarter based on the current interest rate. The doubling period (n) is derived by solving the standard compound interest formula for the time it takes an amount to become 2×:
2P = P × (1 + r)n → Maturity Amount = P × 2
P= Investment amount (no upper limit, min ₹1,000)
r= Annual interest rate (currently 7.5% p.a.)
n= Doubling period — currently notified as 115 months (9 years 7 months) at 7.5% p.a.
Note: This calculator uses the officially notified doubling period (115 months) rather than recalculating n from r, since the Government rounds and revises the doubling duration itself each quarter. Your money grows to exactly 2× your principal on the maturity date, regardless of the exact compounding assumption.
🧮Example: ₹1,00,000 KVP Investment
Investment (P):
₹1,00,000
Interest Rate:
7.5% p.a.
Doubling Period (n):
115 months (9 yrs 7 months)
Step 1: Apply the Doubling Formula
Maturity Amount = 1,00,000 × 2 = ₹2,00,000
Maturity Value (after 115 months):
₹2,00,000
Principal Invested:₹1,00,000
Total Interest Earned:₹1,00,000
Lock-in Ends:30 months (2 yrs 6 months)