Kisan Vikas Patra: At just Rs 200 per day investment, get Rs 1,46,000 on maturity | Know calculations

Kisan Vikas Patra 2024 Calculation: In a world where financial planning and investments play a vital role in securing one's future, avenues like Senior Citizens Savings Scheme Account(SCSS)​, Sukanya Samriddhi Account(SSA)​, Mahila Samman Savings Certificate are good options for a risk-free investment. One such scheme that stands out as the epitome of simplicity and reliability is Kisan Vikas Patra (KVP). What makes it different from other schemes is the promise of doubling the investment in a fixed time frame. And because of this, KVP scheme has attracted the attention of both experienced investors and new investors in the world of finance.

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So, what exactly is the Kisan Vikas Patra, and how does it work? Let's find out:

What is Kisan Vikas Patra Scheme?

Kisan Vikas Patra (KVP) is a savings scheme of the Indian Post Office aimed at encouraging long-term saving habits among individuals, especially in rural areas and small towns. Launched by the Government of India, the scheme promises to double a one-time investment in a period of approximately 9.5 years (115 months). It offers a fixed rate of 7.5 per cent compounded annual return, making it an attractive option for risk-averse investors.

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For instance, an investment of Rs 5000 in Kisan Vikas Patra earns the investor a corpus of Rs 10,000 post-maturity.

Kisan Vikas Patra 2024 Calculation: Minimum amount to invest in the scheme

Unlike other investment options that may require a larger initial amount, KVP allows investors to open an account with a minimum amount of Rs 1000 and in multiples of Rs 100. Moreover, one can invest as much money as one wants in KVP as there is no limit on the maximum balance to be maintained.

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Kisan Vikas Patra 2024: Who can open KVP account?

Under the Kisan Vikas Patra Yojana, any adult is eligible to open an account either an individual or joint (up to 3 adults). Additionally, children aged 10 and above can open KVP accounts in their names. Furthermore, guardians are also authorized to open accounts on behalf of minors or individuals with mental incapacities.

Kisan Vikas Patra 2024 Calculation: How investing Rs 200/day for 1 year gets double in 115 months

The key attraction of KVP scheme is its doubling feature, which means that your investment amount will double in a predetermined period. Currently, the doubling period for KVP is 115 months, or approximately 9 years and 7 months. This means that if you invest Rs 200 per day consistently for a year, your investment will double in less than a decade.

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Now, let's look at the calculations to understand how this doubling phenomenon works. If you invest Rs 200 per day for a year, the total investment for the year will be Rs 73,000 (200 * 365). With the doubling period set at 115 months with an annual interest rate of 7.5 per cent (compounded annually), your investment will double to Rs 1,46,000 in approximately 9 years and 7 months.

In short, Kisan Vikas Patra is a good scheme to grow your savings over time.