The Finance Ministry has retained the interest rate on Kisan Vikas Patra (KVP) at 7.5% for the July-September quarter of FY2026-27, keeping the return on the popular small savings scheme unchanged for yet another quarter.
The interest rates for KVP and other for the second quarter of the current financial year were notified by the ministry on 30 June 2026.
The government had also left the KVP interest rate unchanged at 7.5% for the April-June quarter. The rate has remained unchanged since 1 April 2023, providing investors with a stable return despite changing interest rate conditions.
Investment doubles in 9 years and 7 months
continues to be a preferred investment option for conservative savers looking for assured returns. At the current interest rate of 7.5%, the invested amount doubles after 115 months, or 9 years and 7 months.
Although the investment remains locked in until maturity, premature closure is allowed under specific conditions prescribed under the scheme.
Who can open a KVP account?
A KVP account can be opened by:
- A single adult.
- Jointly by up to three adults.
- A guardian on behalf of a minor or a person of unsound mind.
- A minor aged above 10 years in his or her own name.
The scheme requires a minimum investment of ₹1,000, while there is no upper investment limit. However, the interest earned is fully taxable according to the investor’s applicable income tax slab under both the old and new tax regimes.
What is Kisan Vikas Patra?
Launched by India Post in 1988, Kisan Vikas Patra is a government-backed small savings certificate scheme that was initially introduced to encourage long-term savings among farmers. Over time, it has been opened to all eligible investors.
The scheme currently has a maturity period of 115 months, after which the investment amount doubles. Its government backing and guaranteed returns have made it a popular choice among risk-averse investors.
The minimum investment is ₹1,000, with no ceiling on the maximum amount that can be invested.
To curb money laundering, PAN is mandatory for investments exceeding ₹50,000. Investors depositing ₹10 lakh or more are also required to submit proof of income, such as salary slips, bank statements or income tax returns. Aadhaar is mandatory as proof of identity for opening the account.
How to open a Kisan Vikas Patra account
Opening a KVP account at a post office is a straightforward process:
- Obtain and fill out Form A from a post office or download it online.
- Submit the completed application along with KYC documents, including Aadhaar, PAN and proof of address.
- Deposit the investment amount through cash, cheque, demand draft or pay order.
- Once the documents are verified, the post office issues a KVP certificate containing the investment and maturity details.
Investors also have the option to nominate a beneficiary while opening the account, ensuring a smooth transfer of proceeds in the event of the account holder’s death.