Want more money than what Bank Fixed Deposit gives? This Post Office Scheme can double your money; here is how

The Narendra Modi Government has recently slashed small savings scheme interest rates but still these schemes are more lucrative than bank fixed deposits. Main reason for this is lowering of fixed deposit interest rates. Small saving schemes like PPF, Sukanya Samriddhi Yojana, Kisan ikas Patra are still giving more returns than bank fixed deposits and if we talk about the Kisan Vikas Patra, it has the potential to double your money on maturity - 124 months.

In the recent small savings schemes interest rate revision, the new Kisan Vikas Patra account will have a maturity period of 124 months instead of 113 months. Apart from that, the annual interest rate on the Post Office Kisan Vikas Patra account will be 6.9 per cent, which was earlier 7.6 per cent. 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.

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Elaborating upon why the Post Office Kisan Vikas Patra investment is secured and return in this investment tool is guaranteed, Jitendra 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, return in Post Office Kisan Vikas Patra account is secured and fixed although, 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. On how KVP account can double money, Solanki said, "New maturity period of the KVP account is 124 months means 10 years and four months instead of 113 months. Taking a small amount of Rs 1,000 as an example and investing it in Post Office KVP account today, this will then turn into 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." The official India Post website — indiapost.gov.in claims that your money will get doubled in 124 months. Therefore, the lesson here is that the more you invest, the greater your profit will be.

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 2 & 1/2 years from the date of issue.