Kishan Vikas Patra (KVP)

Kisan Vikas Patra (KVP) is designed to encourage long-term investment and savings amongst the masses. It is suitable for investors who are reluctant to risk taking, have surplus money and are looking for assured returns. It is government backed flexible investment instrument offered in the form of certificates.

Eligibility Criteria & Interest Rate

KVP interest rates is changed periodically based on the announcement made by the FM. The current ROI is 7.50% per annum (compound annually). It can double your investment in 115 months.

Any Indian can invest in KVP and any parent/guardian can purchase KVPs for his/her miner child. HUF and NRIs can’t invest in KVPs.

Note :- Adhar and PAN is Mandatory for above said investment.

Kishan Vikas Patra Maturity and Pre-Mature Withdrawals

According to latest amendment in the scheme the invest amount will be double in 9 Year 7 Months (115 Months). For example, if any one invest Rs. 1,00,000.00 (One Lac) only in KVPs, they will get Rs. 2,00,000.00 (Two Lac) only after  9 Years 7 Months.

Pre-Mature withdrawal made within 1 year will not receive any interest on their investment and they pay some penalty as per rule and regulations. If it made after 1 to 2.5 years will receive some interest with reduce interest rate.

Taxability of Kishan Vikas Patra (KVPs)

There are no tax benefits available under this scheme. The interest accrued is taxable under ‘Income from Other sources’, paid every year. And, TDS of 10% is subtracted from the interest. However, the final amount on maturity is exempted from tax deductions.

Comparison between KVPs (Kishan Vikas Patra) Vs FDs (Fixed Deposit)
InvestmentsMinimum investment of Rs.1000 required whereas there is no capping on maximum investmentMinimum- Rs. 500 Maximum- Not Limited
Rate of Interest7.5%Differs from bank to bank
Maturity9 years 7 months (115 months)10 years. However, subscribers can withdraw money after 7 days from the date of investment
Tax TreatmentReturns on KVP are taxableTax saver FDs are tax exempted for up to Rs.1.5 Lakh under Section 80 (C)
Lock-in periodsLock-in period of 2 and a half yearsNo lock-in period. The tenure of Fixed deposits ranges from 7 days to 10 years
Premature WithdrawalsWithdrawals are allowed before maturity but it is advised to keep the corpus invested for 124 months to get best returnsMoney can be withdrawn as and when the subscriber wants, after 7 days
Kishan Vikas Patran Historial Interests
Time PeriodKVP Interest Rate
Q2 FY 2023-247.5%
Q1 FY 2023-247.5%
Q4 FY 2022-237.2%
Q3 FY 2022-237.0%
Q2 FY 2022-236.9%
Q1 FY 2022-236.9%
Q4 FY 2021-226.9%
Q3 FY 2021-226.9%
Q2 FY 2021-226.9%
Q1  FY 2021-226.9%
Steps to Open KVP Account Online

You can open a KVP account online by following the steps given below:

  1. Login to DOP internet banking
  2. Click on “Service Requests” listed under the “General Services” section and select the “New Requests” option
  3. Select “KVP Account – Open a KVP Account (For KVP)”
  4. Enter the minimum deposit amount for KVP and select your debit account linked to PO Savings account
  5. Click on “Click Here” to read terms and conditions, agree to the terms and conditions and then submit the application online
  6. Enter the transaction password, click on “Submit” and view/download the deposit receipt

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