Post Office Kisan Vikas Patra (KVP) Calculator

See how your investment doubles with this secure government scheme.

Double Your Money Calculator

Please Note: The interest rate and doubling period are set by the government and can change. The rate you get is locked in when you invest. Always check the official Post Office website for the latest details.

What is Kisan Vikas Patra (KVP)? A Simple Guide

Looking for a safe and straightforward way to make your money grow? The Kisan Vikas Patra (KVP) is a savings plan from the Government of India, available at any post office. Its main promise is simple and powerful: **it doubles your invested money over a specific period.** Originally created to help farmers save, it's now open to everyone. It's one of the safest investment options because it's backed by the government, meaning your capital is completely protected.

Key Highlights of KVP

  • 100% Safe: As a government-backed scheme, the return of your money is guaranteed.
  • Guaranteed Doubling: Your investment is guaranteed to double in a pre-fixed period (currently 115 months).
  • Power of Compounding: Interest is compounded annually, which helps your money grow faster.
  • No Maximum Limit: You can invest as much as you want, making it suitable for all kinds of investors.
  • Loan Facility: You can use your KVP certificate as security to get a loan from banks.
  • Easy to Access: You can buy KVP certificates from any post office in India.

How to Purchase a KVP Certificate

Investing in KVP is a simple process:

  1. Visit your nearest Post Office branch.
  2. Fill out the KVP Application Form (Form A).
  3. Submit your KYC documents: a copy of your ID proof (Aadhaar Card, Voter ID, etc.) and address proof.
  4. Deposit the investment amount via cash, cheque, or demand draft.
  5. Once the documents are verified and the payment is cleared, you will be issued the KVP certificate.

How Your Money Doubles: The Magic of Compounding

  • Guaranteed Doubling Period: KVP guarantees that your money will double in a fixed time. Currently, it takes 115 months (9 years and 7 months) at an interest rate of 7.5%.
  • The Power of Compounding: The interest you earn each year is added to your original amount. The next year, you earn interest on this new, bigger amount. This is called compounding, and it's what makes your money grow faster and eventually double.
  • Locked-in Interest Rate: The interest rate you get when you invest is locked for the entire period. So, if the rate is 7.5% when you invest, you will keep getting that rate until your money doubles, even if the government reduces the rate later.

Loan Facility: Using KVP as Security

One of the best features of KVP is that it can be used as collateral (security) to get a loan. Most banks and financial institutions accept KVP certificates. This provides you with liquidity, meaning you can get cash when you need it without having to break your investment. The loan amount you can get depends on the bank's policies and the value of your KVP.

What if You Need Money Early? (Premature Withdrawal)

While KVP is a long-term investment, you can withdraw your money early in special circumstances:

  • You can encash the certificate after 2 years and 6 months (30 months) from the date of purchase.
  • If you withdraw early, you will get your principal back plus simple interest at a lower rate. You will not get the full benefit of compounding.
  • Early withdrawal is also allowed in case of the death of the account holder or by a court order.

Nomination and Transfer Facility

  • Nomination: You can nominate a person who will receive the money in case of your unfortunate demise. This ensures a hassle-free transfer to your loved ones.
  • Transfer: You can easily transfer your KVP certificate from one person to another and from one post office to another, anywhere in India.

Tax Rules for KVP - Important to Know!

Is KVP a Tax-Saving Scheme?

This is a common point of confusion. Here is the simple answer:

  • No 80C Benefit: Investing in KVP does NOT give you any tax deduction under Section 80C.
  • Tax on Interest: The interest you earn is taxable. When you receive the doubled amount at maturity, the interest portion is considered your "Income from other sources" and is taxed according to your income tax slab in the year of withdrawal.
  • No TDS: A major advantage is that there is no Tax Deducted at Source (TDS). The post office pays you the full amount without any tax cuts. It is your responsibility to declare this income when you file your tax returns.

Is KVP the Right Choice for You?

KVP is an excellent choice for conservative investors who prioritize the safety of their money and want a guaranteed, predictable return. If you have a lump sum amount and a long-term goal (like funding a child's education or planning for retirement) and you don't want to take any risks, KVP could be a perfect fit for your portfolio.