SBI 10-Year FD vs KVP: Which scheme can double your Rs 7 lakh investment sooner?
Compare SBI's 10-year Fixed Deposit and Kisan Vikas Patra schemes. Discover which investment doubles your Rs 7 lakh faster, their interest rates, maturity timelines, and features for smart financial planning.
SBI Fixed Deposit (FD) and Kisan Vikas Patra (KVP) are popular investment options in India, offering stable returns and secure growth. While SBI FD provides attractive interest rates for general and senior citizens, KVP is known for its guaranteed doubling of the investment. If you’re looking to invest Rs 7 lakh, understanding the differences between these schemes can help you decide which suits your financial goals better. Let’s compare their features, interest rates, and timelines to determine the more rewarding option.
(Disclaimer: This is not an investment advice. Do your own due diligence or consult an expert for financial planning)
SBI Fixed Deposit Overview
- SBI offers fixed deposit (FD) interest rates ranging from 3.50% to 7.25% p.a. for general citizens and 4.00% to 7.75% p.a. for senior citizens.
- Tax-saving FD rates stand at 6.50% for the general public and 7.50% for senior citizens.
Return on Rs 7 Lakh Investment in SBI FD (General Public)
- Interest Rate: 6.50% p.a. for general citizens.
- Investment: Rs 7,00,000.
- Estimated Returns: Rs 6,33,891.
- Total Value After 10 Years: Rs 13,33,891.
Return on Rs 7 Lakh Investment in SBI FD (Senior Citizens)
- Interest Rate: 7.50% p.a. for senior citizens.
- Investment: Rs 7,00,000.
- Estimated Returns: Rs 7,71,644.
- Total Value After 10 Years: Rs 14,71,644.
Kisan Vikas Patra (KVP) Scheme Overview
- Interest rate: 7.5% compounded annually.
- The amount invested in KVP doubles in 115 months (approximately 9 years and 7 months).
- Minimum Investment: Rs 1,000, in multiples of Rs 100, with no maximum limit.
KVP Features: Who Can Open an Account?
- Eligible Individuals: Single adults, joint accounts (up to 3 adults), guardians for minors or persons of unsound mind, and minors above 10 years.
- Account Types: Single, joint, or for minors.
KVP Deposit and Maturity Details
- Deposit: Minimum Rs 1,000, multiples of Rs 100.
- Maturity: The account matures based on the maturity period set by the Ministry of Finance.
KVP Pledging and Transfer Options
- Pledge: Can be pledged or transferred to entities such as banks, RBI, housing finance companies, etc.
- Transfer: Possible in case of death of the account holder, court orders, or pledging.
KVP Premature Closure Conditions
- Possible after 2 years and 6 months, or in cases such as death of account holders or court orders.
- Specific conditions apply for premature closure.
When Does KVP Double Your Investment?
KVP doubles your Rs 7 lakh investment in 115 months or approximately 9 years and 7 months.
Which Scheme is Better for Doubling Your Investment?
- SBI FD for Senior Citizens offers higher returns (Rs 7,71,644) compared to KVP (which doubles in 9 years 7 months).
- For faster growth, KVP offers earlier doubling but with lower total value compared to the senior citizen FD rate.