Introduced by India Post in 1988 as a small savings certificate, Kisan Vikas Patra is a 115 month (9 years and five months) long scheme, where an investor can put in lump sum amount to double over the full tenure.
It was started as an initiative to help farmers save for the long term but is now available to all Indian citizens above the age of 10 years. For minors (below 18 years of age) an adult can open the account and then transfer the same once they attain major age.
The scheme has a minimum start investment of ₹1,000, with no upper cap and Aadhaar as proof of identity. However, since 2014, investments above ₹50,000 require PAN Card proof, while for deposits of ₹10 lakh and more investors must show income proof.
How much is rate of interest for KVP? Key highlights
Notably, it is a low-risk small savings scheme guaranteed by India Post and banks who offer the scheme. Notably, the Centre has kept the interest rates of small savings schemes, including KVP, unchanged for the upcoming quarter of FY27.
This means, the interest rate on KVP will be 7.5% for the April-June 2026 quarter. Notably, despite the nearly 10-year tenure, investors can encash KVP after two and a half years from date of investment.
Notably, the money doubles on maturity and interest earned is taxable. There is no deduction under Section 80C, but the account can be transferred to another user and can have up to three joint holders.
Further, TDS is deducted at 10% every year on the Interest credited.
According to the India Post website, the account may be closed prematurely at any time before maturity under the following circumstances:
- On the death of account holder of a single account, or any or all the account holders in a joint account;
- On forfeiture by a pledgee, being a Gazetted officer; and
- When ordered by court.
Notably, Hindu Undivided Family (HUF) and Non-Resident Indians (NRIs) are not eligible to invest in KVP, as per a Clear Tax report. It added that you can use your KVP certificate as collateral or security to avail secured loans.
How can I apply for KVP at India Post? Step-by-step guide
- Fill the Form A at a Post office or download it from the India Post website here — https://www.indiapost.gov.in/banking-services/savings
- Submit the completed form along with required KYC documents (Aadhaar, PAN, and address proof).
- You can deposit the investment in form of cash, cheque, demand draft, or pay order.
- Your application will be verified, post which the office will issue a KVP certificate showing the investment amount and maturity details.
- You can also nominate a beneficiary at the time of opening the account to ensure smooth transfer of funds in case of unforeseen events.
How long does it take for Kisan Vikas Patra to double your money?
According to the scheme, your investment will be doubled within a period of 115 months, i.e. 9 years and 5 months. Here’s an illustration for returns over the period for an investment of ₹1,000.
How KVP doubles you money |
|
|---|---|
| Duration | Account Balance (Rs) |
| 2.5 years but < 3 years | 1173 |
| 3 years but < 3.5 years | 1211 |
| 3.5 years but < 4 years | 1251 |
| 4 years but < 4.5 years | 1291 |
| 4.5 years but < 5 years | 1333 |
| 5 years but < 5.5 years | 1377 |
| 5.5 years but < 6 years | 1421 |
| 6 years but < 6.5 years | 1467 |
| 6.5 years but < 7 years | 1515 |
| 7 years but < 7.5 years | 1564 |
| 7.5 years but < 8 years | 1615 |
| 8 years but < 8.5 years | 1667 |
| 8.5 years < 9 years | 1722 |
| 9 years but before maturity | 1778 |
| On maturity of the certificate | 2000 |
| Source: Clear Tax | |
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.