The way stock market has been volatile in the last three months, investors have understood the importance of a diversified portfolio to earn more money. They have also understood the value of government-backed small saving schemes that give assured return with zero risk factor involved. Kisan Vikas Patra among various Post Office Schemes is one such scheme. This scheme offers secure returns to the investor.
Currently, an investor will get 6.9 per cent per annum compound interest on Kisan Vikas patra investment. If we apply the Rule 72 Calculator, one’s investment in Post Office Kisan Vikas Patra scheme will get doubled in 10.39 years. Even the government says that in Kisan Vikas Patra, one’s investment will get doubled in 124 months. In January to March 2020 quarter, when the Kisan Vikas Patra interest rate was 7.6 per cent, it used to take 113 months to double one’s money but even after a cut in interest rate, this investment tool is still lucrative for investors, say experts.
Elaborating upon why the Post Office Kisan Vikas Patra investment is secure and returns in this investment tool is guaranteed, Jitendra Solanki said, “Interest rate in Post Office Kisan Vikas Patra is fixed throughout the investment period at the annual interest rate available at the time of account opening. For example, if someone had opened the Post Office Kisan Vikas Patra account in January to March 2020 quarter this year, he or she will get an annual interest rate of 7.6 per cent till his or her investment period. New rates will be applicable to the new accounts getting opened in the April to June 2020 quarter.”
So, return in Post Office Kisan Vikas Patra account is secured and fixed. Though, annual interest on the Post Office Kisan Vikas Patra has been slashed from 7.6 per cent to 6.9 per cent. New Kisan Vikas Patra account holders still have a chance to double their money. On how KVP account can double one’s money, Solanki said, “New maturity period of the KVP account is 124 months means 10 years and four months instead of 113 months. If a person invests Rs 1,000 in one’s Post Office KVP account today, this Rs 1,000 will become around Rs 2,000 at the time of maturity after 124 months. It’s advisable to those who believe in a diversified portfolio where some part of the portfolio must be invested in secured and guaranteed return plans.” Even the official India Post website — indiapost.gov.in claims that your money will get doubled in 124 months.
For an investor investing in Post Office Kisan Vikas Patra, the minimum amount to be invested is Rs 1,000 and the amount has to be in the multiple of Rs 100 only. There is no limit on the maximum amount to be invested in the Post Office KVP account. Kisan Vikas Patra can be purchased from any Department of Post office and the facility of nomination is available there. The KVP certificate bought by the investor can be transferred from one person to another and from one post office to another. It can be encashed after two and half years from the date of issue.