What is Kisan Vikas Patra, govt-backed safe fixed-return scheme:In how many days does money double, who can invest, and know complete process

When investing, everyone wants their money to be safe and to get good returns. This is very difficult amidst market fluctuations. However, there is one such government small savings scheme with safe and fixed returns, Kisan Vikas Patra (KVP). This is a low-risk investment option, in which the invested amount almost doubles in a fixed period. By name, it seems like a scheme made for farmers, but any Indian citizen can invest in it. Being government-backed, it is also safe. Today, in the ‘Your Money’ column, we will learn what the Kisan Vikas Patra scheme is. We will also know that- Question: What is the Kisan Vikas Patra scheme? Answer- Kisan Vikas Patra (KVP) is a small savings scheme of the Government of India, which was launched in 1988. Its objective is to promote safe and long-term savings. The amount invested in this scheme doubles within a fixed time limit. Currently, the maturity period of KVP is 115 months (approximately 9 years 7 months). This period may change from time to time according to the interest rate. The minimum investment amount in this is ₹1,000, and there is no maximum limit set. Question: What are the KYC-related rules for Kisan Vikas Patra? Answer – The government has kept strict KYC-related rules in the Kisan Vikas Patra scheme for security and transparency- Question: How are the interest rate and return determined in Kisan Vikas Patra? Answer- The interest rate on KVP is decided by the government every quarter. As per the year 2024-25, it is getting approximately 7.5% annual compound interest. Compound interest means that the interest received every year is added to the principal amount and interest is earned on that total amount the following year. This is why the invested amount doubles upon completion of the stipulated time. Question: Who can invest in the Kisan Vikas Patra scheme? Answer- To avail the benefits of the KVP scheme, certain eligibility criteria need to be met. Let’s understand this through a graphic. Question: Who should invest in Kisan Vikas Patra? Answer- This scheme is considered particularly good for investors who want to avoid risk and desire stable returns. This investment option can be more useful for these people- Question: What are the benefits and features of Kisan Vikas Patra (KVP)? Answer – Kisan Vikas Patra has many benefits. Let’s understand it through a graphic. Question: Can Kisan Vikas Patra be transferred? Answer- Yes, KVP can be transferred under certain conditions. Question: Can money be withdrawn prematurely from Kisan Vikas Patra? Answer- KVP has a lock-in period. Partial or full withdrawal is allowed only after a minimum of 30 months of investment. Premature withdrawal may be allowed in some special circumstances, such as- Question: What are the tax rules for Kisan Vikas Patra? Answer – It is important to understand the tax-related rules in KVP before investing. Question: What is the process for investing in Kisan Vikas Patra? Answer – There are a few steps for this. Let’s understand them one by one. See in the graphic- Understand in detail- First, take the application form (Form A) and fill in the required information. Fill the form and submit it to the post office or bank. If the investment is being made through an agent, the agent will have to fill out Form A1. This form is also available online. The KYC process is mandatory, for which proof of identity and address will have to be submitted. Payment will have to be made after verification of documents. Payment can be made by cash, cheque, pay order, or demand draft. Upon completion of payment, the KVP certificate will be received immediately. If payment is by cheque or draft, the certificate will be received later. It is important to keep it safe, as it will be needed at maturity. There is also an option to get the certificate via email if desired. Question: What is the difference between Kisan Vikas Patra and Fixed Deposit (FD)? Answer- Kisan Vikas Patra (KVP) and Bank Fixed Deposit (FD) are both considered safe investment options, but their rules and benefits are different. KVP is a government savings scheme in which the invested amount almost doubles upon completion of the stipulated period. It has a long investment period and does not offer tax exemption. Whereas an FD is an investment facility offered by banks, where a lump sum amount is usually deposited for a fixed period and the interest rate is determined by the bank. FD also offers the option of Tax Saving FD, while KVP only provides safe and fixed returns.