KVP Scheme: Why is the Post Office KVP scheme so popular? Learn the full formula for doubling your money.
Kisan Vikas Patra (KVP): The Post Office KVP scheme is a secure investment option backed by a government guarantee. It allows you to invest small amounts to earn good returns and benefit from doubling your money over the long term.
Post Office Savings Schemes: Nowadays, people prefer to invest their savings where their money is truly safe and yields good returns. This is why Post Office small savings schemes are rapidly gaining popularity. Often, the interest rates on these schemes are even better than those offered by bank Fixed Deposits (FDs).
One key scheme among these is the Kisan Vikas Patra (KVP). It is popularly known as a scheme that doubles your money. Since it comes with a full government guarantee, it is considered a safe investment. Its biggest advantage is that you can start investing with a small amount and earn substantial returns over the long term.
What is the KVP scheme?
In the Kisan Vikas Patra (KVP) scheme, the invested amount doubles over a fixed period. If you are looking for a safe, risk-free investment, KVP could be an excellent option for you. Its standout feature is the government's guarantee of safety, making it a low-risk investment. Notably, it remains unaffected by market fluctuations.
How long does it take for the money to double?
The Post Office money-doubling scheme currently offers an annual interest rate of 7.50%. Based on this rate, the invested amount doubles in 115 months—that is, 9 years and 7 months. This is why it is known as a money-doubling scheme. For instance, if you invest ₹5 lakh, the amount could grow to approximately ₹10 lakh after the stipulated period.
Account opening facility
You can start investing in the Post Office Kisan Vikas Patra (KVP) with as little as ₹1,000. There is no set limit for investment in this scheme, meaning you can invest as much as you wish. You can open either a single or a joint account under the Kisan Vikas Patra (KVP) scheme. Additionally, you can open an account in your child's name, provided the child is at least 10 years old.
