7.5% interest on the Kisan Vikas Patra scheme:Your money will double in 9 years and 7 months; key things to know

If you are planning to invest somewhere these days, you should learn about the Post Office’s Kisan Vikas Patra scheme. It offers an interest rate of 7.5%. Here is everything you need to know about the scheme… What is the Kisan Vikas Patra scheme? Kisan Vikas Patra is a small savings scheme of the Government of India. It is essentially a fixed deposit scheme, or FD. You have to invest in it for at least two and a half years, or 30 months. The scheme has a lock-in period of two and a half years, which means you cannot withdraw money from it during this period. How are the interest rate and returns on the Kisan Vikas Patra determined? The government sets the interest rate on KVP every quarter. It currently offers annual compound interest of 7.5%. Compound interest means that the interest earned each year is added to the principal, and interest is then earned on that amount the following year. This is why the invested amount doubles when the stipulated period is completed. Better for long-term investment This scheme is considered particularly suitable for investors who want to avoid risk and earn stable returns. This investment option may be more useful for people who- Any Indian can invest Any Indian citizen can invest in this scheme. Investors in the Kisan Vikas Patra must be at least 18 years old. However, a guardian can invest on behalf of a minor. A joint account can also be opened under the scheme. You can invest in it online or offline through any post office or bank.