Kisan Vikas Patra

Kisan Vikas Patra (KVP)

Duration: The NSCs have a maturity period of 8 years & 7 months.

Mode of Investment: Single, Minor with parent/guardian and Joint (Two or more) Any individual or including body corporate can purchase a KVP by applying to the Post Office through a representative or an agent. Payments can be made in cash, cheque or DD or by raising a debit in the savings account held by the purchaser in the Post Office.

Investments: Min Amt.  Rs.100/- and additional investment in multiples of Rs. 100/- Max Amount No Limit
Denominations   Rs. 100/-, 500/-, 1,000/-, 5,000/-, 10,000/-, 50,000/-

Returns: KVP Scheme doubles money in 8 years & 7 months.

Advantages:

• Considering various benefits of dematerialization to investors, Department of Posts (DOP) in association with NSDL has introduced the facility of holding KVP in dematerialized form.
• Facility is available at the time of opening the account or anytime during the tenure of the investment.
• Premature encashment is permitted after 2.5 years from the date of investment. Lower interest accrued, if prematurely withdrawn.
• If the loss is due to theft, fire or the certificate is mutilated, a duplicate certificate is issued after proper verification.
• A good investment instrument for all retired persons who would require the money at a later date and for those who do not have taxable income.

Disadvantage: No Tax benefits are available for investments in this scheme under the Income Tax Act