All you want to know about Kisan Vikas Patra (KVP), a flagship small-saving scheme offered by Indian Post Office and backed by Indian Government.

Target investor
Indian residents, primarily in the rural areas, who have no access to the Banks and other financial institutions.

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Interest rate
8.7% compounded annually.
Money doubles in 100 months (8 years 4 months).

Duration
8 years 4 months – However premature withdrawal is allowed.

Risk
None – Backed by Indian Government – One of the safest investments.

Premature closure
Yes – Can be closed any time after 2 years 6 months.
Note in case of premature closure, you will get lesser interest rate.

Tax benefit
None – No tax benefit is available. Entire interest is taxable.

Tax deduction at source
No – Post office does not deduct tax at source – You are responsible to pay tax.

Denomination
Available in 1000 (one thousand), 5000 (five thousand), 10000 (ten thousand), 50000 (fifty thousand).

Minimum investment
1000 (one thousand).

Maximum investment
No limit

Documents needed
KYC documents including identity proof and address proof.

Where to open?
Any post office.

How to open?
Visit any post office with necessary documents.

Online facility
No – Post office is yet provide online option to buy and redeem KVP.

Loan facility
Loan can be obtained from a nationalized bank.

Nomination
Available – Can be done at the time of purchase.

Who can buy?
Indian residents – NRIs cannot invest.

Mode of holding
Individual, Joint and Minor through guardian.

Transfer
Yes
Can be transferred to from one person to another any number of times.
Can also be transferred from one post office to another post office.

More information
Information on KVP from Post Office