Kisan Vikas Patra Interest Rate – The Kisan Vikas Patra (KVP), a popular small savings scheme offered by India Post. It is a secure investment option that doubles your money over a fixed period of time. As of April 2025, the KVP interest rate is 7.5% per annum. It can double you money in115 months (9 years and 7 months).
Kisan Vikas Patra Interest Rate for 2025
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Current Rate: 7.5% p.a., effective for Q1 FY 2025–26 (April–June 2025).
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Maturity Period: 115 months, doubling the invested amount.
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Calculation: Interest is compounded annually, ensuring your investment grows steadily.
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Example Returns:
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Invest ₹10,000 → Receive ₹20,000 after 115 months.
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Invest ₹1,00,000 → Receive ₹2,00,000 at maturity.
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The rate is set by the Ministry of Finance and revised quarterly based on economic conditions. Unlike market-linked investments, KVP’s fixed rate guarantees returns, making it ideal for risk-averse investors.
Key Features
Kisan Vikas Patra Interest Rate
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Minimum Investment: ₹1,000 (in multiples of ₹100), with no upper limit.
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Availability: Offered at post offices and select banks (e.g., Bank of Baroda, Union Bank).
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Safety: Backed by the Government of India, with deposits up to ₹5 lakh insured by DICGC at banks.
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Taxation: Interest is taxable under “Income from Other Sources,” but no TDS is deducted. No Section 80C benefits apply.
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Withdrawal: Premature withdrawal is allowed after 30 months only in cases of the account holder’s death or by court order.
Why Choose KVP in 2025?
With a 7.5% p.a. interest rate, KVP offers a compelling option for:
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Long-Term Savers: Doubles your investment in under 10 years, perfect for goals like retirement or education.
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Risk-Averse Investors: Government backing ensures capital safety.
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Flexible Investors: No maximum investment limit suits both small and large savers.
However, KVP lacks tax-saving benefits, and the 30-month lock-in may not suit those needing liquidity.
How to Invest
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Offline: Visit a post office or authorized bank, submit Form A, KYC documents (Aadhaar, PAN), and deposit the amount.
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Online: Use India Post’s internet banking portal, select “KVP Account,” enter the amount, and complete KYC.
For more details, visit India Post or explore guides on https://www.indiapost.gov.in/Financial/pages/content/post-office-saving-schemes.aspx
Also visit : https://postofficefd.com/icici-bank-fixed-deposit-rates/