Kisan Vikas Patra (KVP)

Kisan Vikas Patra (KVP) is a savings certificate scheme offered by the Government of India, designed to encourage long-term financial discipline among small savers. It is especially popular in rural and semi-urban areas.

Here are some of its basic features–

Feature	Kisan Vikas Patra (KVP)
Benefit	Guaranteed returns, doubles investment at maturity
Investment Type	Fixed-income scheme
Minimum Investment	Rs. 1,000
Investment in multiples of	Rs. 100
Maximum Investment	No maximum limit
Interest Rate (as of Q1 FY 2024-2025)	7.5% compounded annually
Maturity Period	115 months (approx. 9.5 years)
Tax on Interest	Yes, taxable as per the income tax slab
Tax Deduction at Source (TDS) on withdrawal	No
Liquidity	Low, Premature closure allowed only in exceptional cases
Risk	Low (backed by the Government of India)