Post Office Scheme: Double your money in this secured, fixed investment tool with assured guarantee from central government

Post Office Scheme: Kisan Vikas Patra or Kisan Vikas Yojana is one of the most popular small savings schemes among Investors who have low risk appetite. In the recent small savings schemes interest rate revision, Kisan Vikas Patra interest rate stands at 6.9 per cent while in this post office scheme 2020, new maturity period is of 124 months. Since, KVP is a central government backed scheme, after investing in this Post Office scheme, the investor gets a guarantee from the government that his or her money is secured with a guaranteed return.

Speaking on the Post Office Kisan Vikas Patra investment and why it's secured and return in it is guaranteed, Jiutendra Solanki said, "Interest rate in Post Office Kisan Vikas Patra is fixed throughout the investment period at the annual interest rate available at the time of account opening. For example, if someone had opened the Post Office Kisan Vikas Patra account in January to March 2020 quarter this year, he or she will get an annual interest rate of 7.6 per cent till his or her investment period. New rates will be applicable to the new accounts getting opened in the April to June 2020 quarter."

So, in return, the Post Office Kisan Vikas Patra account is secured and fixed. Though annual interest on the Post Office Kisan Vikas Patra has been slashed from 7.6 per cent to 6.9 per cent. New Kisan Vikas Patra account holders still have a chance to double their money. 

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On how KVP accounts can double one's money, Solanki said, "New maturity period of the KVP account is 124 months meaning 10 years and four months. Taking a very small amount as an example, if a person invests Rs 1,000 in a Post Office KVP account today, this will become around Rs 2,000 at the time of maturity after 124 months. It's advisable to those who believe in a diversified portfolio where some part of the portfolio must be invested in secured and guaranteed return plans." Even the official India Post website — indiapost.gov.in claims that your money will get doubled in 124 months.

For an investor investing in Post Office Kisan Vikas Patra, the minimum amount to be invested is Rs 1,000 and the amount has to be in the multiple of Rs 100 only. There is no limit on the maximum amount to be invested in the Post Office KVP account. Kisan Vikas Patra can be purchased from any Departmental Post office and the facility of nomination is available there. The KVP certificate bought by the investor can be transferred from one person to another and from one post office to another. It can be encashed after two and half years from the date of issue.