This popular savings scheme from India Post can double an individual’s investment in 100 months

Similar to other kinds of savings certificate, Kisan Vikas Patra can be described as a certificate purchased from India Post. Issued in the form of Savings Certificate, the amount invested in Kisan Vikas Patra will double in 100 months understood otherwise as 8 years 4 months.

Earlier the Kisan Vikas Patra was launched by the India Post in 1988. This scheme was highly successful right from its inception. However, when a committee instituted by the government suggested that this scheme could be misused. Hence the government closed the scheme in 2011. The new government that formed in 2014 decided to re-launch Kisan Vikas Patra in 2014.

One can purchase a Kisan Vikas Patra from a Post Office. The minimum amount that can be deposited in the scheme is Rs 1,000. There is no upper limit for the amount that can be deposited. An adult can purchase the certificate for himself or on behalf of a minor. Two or more adults can also purchase it jointly. The minimum period after which the Kisan Vikas Patra can be encashed is 2 and a half years.

Kisan Vikas Patra Features and Benefits

Long term Savings

The Kisan Vikas Patra enables individuals save early with an amount as low as Rs 1,000. There is no upper limit for investing in Kisan Vikas Patra. The value invested in Kisan Vikas Patra will double in 100 months which is equivalent to 8 years and 4 months.

Total security

The tallest concern of every investor is the security of the investment made. Since the Kisan Vikas Patra is a government owned scheme, the returns are fixed and fully secure. Because the amount the individual will get on maturity is declared on the certificate itself, the individual can be assured that they can get the amount at the end of the term.

Fixed interest rate

The interest rate as per the Kisan Vikas Patra is fixed on the amount invested. This is a kind of government bond and hence it is completely secure. The individuals investing on it are assured of the doubling of the principal amount in a matter of 100 months.

Loan collateral

Kisan Vikas Patra can also be used as a collateral for availing of loans. It is accepted as a valid collateral by majority of banks and financial institutions for the purpose of issuing a loan.

Non-Transferable

The Kisan Vikas Patra benefits can be availed of only by the Kisan Vikas Patra certificate holder. If it has to be transferred in other person’s name, it can be done only if the postmaster permits it based on some formalities to be complied with.

Tax benefits

When the certificate holder wishes to encash the Kisan Vikas Patra, tax is not deducted at source. The disbursal of any amount on the certificate is fully tax exempted. The certificate holder must take the responsibility to pay the taxes applicable on the interest accrued over the term of the scheme. The amount invested in this scheme is completely exempted from wealth tax.

Fixed Lock-in Period

Kisan Vikas Patra comes with a fixed lock-in-period of two and a half years. If the certificate holder has any emergency needs, the money can be encashed after two and a half years along with the interest applicable for the period.