Post Office Scheme to Double the Money

  Post Office Post OfficeScheme to Double the Money

Post Office Scheme to Double the Money: Kisan Vikas Patra is a saving certificate scheme. Originally, it was launched by the India Post on 1988 but was closed in 2011 due to some concerns regarding its misuse. The government re-launched this scheme in 2014. This scheme was made in order to help the group of people who do not have access to other investment options.

Post Office Scheme to Double the Money

KVP is a fixed income earning instrument.  While it is very similar to other to other saving schemes launched by the government, KVP has certain variations in terms of some of its features like the rate of interest and tenure.

This scheme is useful for those people who are looking at secure returns on investment or for people who do not want to use the National Savings Certificate (NSC) and Public Provident Fund (PPF). It is interesting to note that you get double the amount of money you invested at the completion of its tenure. You must remember that this scheme does not allow any reduction in the amount due to income tax, and you cannot enjoy any income tax benefits since the interest earned through Kisan Vikas Patra is taxable.

Who Can Purchase The Kisan Vikas Patra? | Post Office Scheme to Double the Money

Kisan Vikas Patra

The Kisan Vikas Patra can be purchased by the following-

  1. An adult in his or her own name or on behalf of a minor.
  2. A Trust
  3. Two adults can jointly purchase a KVP as well.

Where Can You Purchase The Kisan Vikas Patra? | Post Office Scheme to Double the Money

Interested individuals can go to their nearest post office as KVP is available in most of the post offices in India. There are future plans for National Banks to offer this scheme as well.

Documents Required 

In order to purchase a KVP, individuals have to conform to the KYC norms and submit the listed documents.

  1. Identity proof is a must. It can be a passport, PAN card, licence, Voter ID card etc.
  2. Address proof in the form of telephone and electric bill, passport, Voter ID card etc.
  3. Passport size photo

If you are makings an investment above fifty thousand rupees, you are obliged to submit your PAN card.

Salient Features Of Kisan Vikas Patra Scheme | Post Office Scheme to Double the Money

Benefits Of Kisan Vikas Patra

  1. The minimum amount that can be deposited is one thousand rupees.
  2. There is no fixed limit for the maximum amount of deposit that can be made.
  3. The tenure of the investment is 113 months, that is, the amount matures in nine years and five months.
  4. The rate of interest is 7.6%
  5. The interest earned from Kisan Vikas Patra scheme is fully taxable.
  6. Income tax deduction on the invested amount is not applicable.
  7. Minimum lock period for this scheme is two years and six months.
  8. Nomination facility is allowed in this scheme.
  9. Transfer facility from one post office to another is also available from anywhere in India.
  10. You can take loans by pledging the KVP certificates in the bank.

Also Check: Different Types of Loans

Premature Withdrawal | Post Office Scheme to Double the Money

It is certified that the minimum lock-in period of this scheme is two years and six months; the option of premature withdrawal is only applicable after this time. However, this condition can be forfeited in circumstances like death of the certificate holder if it is an order of the court or forfeiture by a pledge being gazetted government officer.

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You can check the list to ensure that you are paid the specified amount that corresponds to the time period of withdrawal.

Benefits Of Kisan Vikas Patra | Post Office Scheme to Double the Money

  1. The maximum amount that can be deposited is not fixed so the investor can invest any amount according to his or her own needs. Although a minimum investment of one thousand rupees is fixed.
  2. The rate of interest is good.
  3. It can be easily transferred as it is a bearer-line instrument.
  4. It can be used as collateral security for loans taken from banks.

Demerits Of Kisan Vikas Patra | Post Office Scheme to Double the Money

  1. Since it is a bearer-line instrument, anyone having the instrument can claim the money kept in the post office.
  2. Interests acquired from KVP are taxable.

Thus, KVP is more suitable for rural investors who do not have a bank account and can only depend on schemes like KVP for higher returns. You can get higher interest rates by making fixed deposits in banks.

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