Indian Post Office provides investors with various investment options and all available schemes offer guarantee returns because they have the backing of government of India. As the schemes are government backed, the safety and security is also quite high. Tax exemption under section 80C is yet another big benefit that investors can receive for many schemes available under post office saving schemes. Today we will discuss about Kisan Vikas Patra:
1. Interest Rate
In Kisan Vikas Patra saving scheme, the interest rate is 6.9% compounded annually. The amount invested doubles in 124 months or 10 years 4 months, according to the website of Indian Post.
Minimum Amount for opening of account and maximum balance that can be retained: Investors can deposit a minimum of Rs. 1000/- and in multiples of Rs. 100/-. There is no maximum limit.
2. Who can open a KVP Account?
The investors should be aware of who can open the account. Below are the details:
(i) a single adult
(ii) Joint Account (up to 3 adults)
(iii) a guardian on behalf of minor or on behalf of person of unsound mind
(iv) a minor above 10 years in his own name.
The deposit will mature on the maturity period prescribed by the Ministry of Finance from time to time as applicable on the date of deposit. Kisan Vikas Patra (KVP) can be prematurely closed any time before maturity subject to the following conditions given below:
(i) On the death of a single account, or any or all the account holders in a joint account
(ii) On forfeiture by a pledgee being a Gazette officer.
(iii) When order by court.
(iv) After 2 years and 6 months from the date of deposit.
4. Transfer of account from one person to another
KVP can be transferred from one person to another person on the following conditions only given below:
(i) On the death of account holder to nominee/legal heirs.
(ii) On the death of account holder to joint holder(s).
(ii) On order by the court.
(iii) On pledging of account to the specified authority.