Want to double your money? This scheme can make it happen

If you wish to double your money in a safe and secure manner, Kisan Vikas Patra (KVP) scheme offered by India Post can be a safe and secure option. It has the potential to double the amount you have invested in 112 months. The KVP is a fixed rate small savings scheme, whose popularity is linked to its risk free nature. The scheme is available in the form of certificates, which can be purchased from select public sector banks as well as from India Post Offices. Other key features of the scheme are given here.

Available at India Post Offices, Kisan Vikas Patra (KVP) is a fixed rate small savings scheme that focuses on doubling an individual's investment in a period of 112 months (nine years and four months), according to India Post, which has a network of more than 1.5 lakh post offices in the country. Currently, investment in KVP will fetch you a return of 7.7 per cent, and the interest on deposited amount is compounded on an annual basis. Earlier, the interest rate under this scheme was 7.3 per cent. 

For investing in the KVP scheme, an applicant should be an adult resident of India. A parent/guardian may invest on behalf of a minor. Notably, Hindu Undivided Families (HUFs) and Non-Resident Indian (NRIs) cannot invest in the KVP scheme.

An applicant can currently invest in denominations of Rs 1,000, Rs 5,000, Rs 10,000, and Rs 50,000, and there is no maximum limit on KVP investments. KVP application forms are also available online at India Post Offices and select banks.

Although maturity period may change based on rate changes made by the Ministry of Finance, the maturity value is pre-printed on the certificate issued. Kisan Vikas Patra can easily be transferred from one post office to another as well as from one person to another.

Investors should note since KVP is not designed to attract investors looking to save tax, principal amount and interest do not have any tax deductions. However, it still offers guaranteed returns as KVP certificate is a government-backed instrument. Kisan Vikas Patra also allows you to stay invested for close to 10 years and doubles your money.  

Applicant is also allowed for premature encashment after two and a half years subject to certain terms and conditions. Premature withdrawals made within a period of 1 year will not receive any interest, and investor will have to pay a penalty as per scheme regulations.

If an applicant goes for premature withdrawals after a period of 1 year and up to 2.5 years, he/she will receive interest but at a reduced rate. 

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Notably, premature withdrawal after 2.5 years will not attract any penalties and will also receive interest at the applicable rate.