The KVP scheme promises to double your investment, making it an excellent choice for those who have additional lump-sum funds but prefer to avoid any associated risks. This scheme offers a beneficial opportunity for such investors.
Post Office Scheme: If you are looking for better long-term investment options and want guaranteed returns, the post office offers several good schemes. One such scheme is the Kisan Vikas Patra (KVP). The government introduced this scheme in 1988 to encourage long-term financial savings.
Initially, this scheme was exclusively for farmers, but now any Indian citizen can invest in it. Currently, the scheme offers an interest rate of 7.5%. The KVP scheme guarantees to double your investment in 115 months, or 9 years and 7 months. If you invest 5 lakh rupees in this scheme, it will mature to 10 lakh rupees after 115 months.
How much money can you invest
You can start investing in KVP with just 1000 rupees, and there is no maximum limit. If your investment exceeds 50,000 rupees, you must provide a PAN card. This requirement was introduced by the government in 2014 to curb money laundering. For investments of 10 lakh rupees or more, you need to submit additional documents like salary slips, income tax returns, bank statements, and your Aadhaar number to the post office.
For whom is the scheme beneficial
Those who possess additional lump-sum funds, wish to avoid any risks, and do not foresee a need for this money in the near term, may find the Kisan Vikas Patra to be a very advantageous investment.
Who can open an account
Any adult over the age of 18 can open a single or joint account under this scheme. Additionally, children over the age of 10 can get a Kisan Vikas Patra in their name. A guardian can open an account on behalf of a minor or a person with an unsound mind. NRIs are not permitted to invest in this scheme. Required documents may include an Aadhaar card, age proof, passport-sized photographs, and the KVP application form.
You can do pre-mature withdrawal of money under certain conditions
KVP accounts permit premature withdrawals after 2 years and 6 months from the deposit date. However, under specific conditions, premature withdrawals can be made at any time, such as:
- If the KVP holder or, in the case of a joint account, any or all of the account holders pass away
- When the account is seized by a pledgee in the case of a gazetted officer
- As per a court’s order
