Kisan Vikas Patra
- KVP offers an interest rate of 7.6% compounded annually. It can be purchased from any post office. The invested amount doubles every 112 months (9 years and 4 months).
- Investment is available in denominations of Rs.1,000, Rs. 5,000, Rs.10,000 and Rs. 50,000. Investment comes with the minimum limit of Rs.1,000 and with no maximum limit.
- Certificates are easily transferable and can be endorsed to third person.
- Certificate is comparatively liquid in nature as it offers encashment facility after 2.5 years of investment.
There is no tax deduction on the principal amount invested and interest on the KVP is also taxable. The scheme is thus not tax-efficient. It works for new and small investors from remote areas who do not have access to other financial products.