The finance ministry in view of the falling interest rates across the financial system has increased the tenure in which the funds parked in KVP will double by 1 month from the current 9 years 4 months to 9 years 5 months. This shall be applicable for money parked in the government-backed instrument from July 1, 2019.
KVP for the quarter ended September quarter will fetch 7.6% in comparison to the June quarter of 7.7%.
An individual can park a minimum of Rs. 1000 and in multiples thereof and there is no upper investment ceiling which can be parked in the government savings scheme.
KVPs are issued in denominations of Rs 1,000, Rs 5,000, Rs 10,000 and Rs 50,000.
Post offices sell these KVP and certificates can be redeemed post the completion of 2.5 year from the issuance date.
In case of premature withdrawal after two-and-a-half years, a person will get Rs 1,173 for every Rs 1,000 invested. After 3 years, the amount will go up to Rs 1,211 and after three-and-a-half years, the amount would be Rs 1,251.