A fixed income investment plan is included. Deposit can be started at any post office branch. The government started this scheme mainly to encourage middle income earners to invest.
But there is another post office scheme which gives you double profit on one time investment. Kisan Vikas Patra. This is one of the best small savings schemes offered by Post Office. Currently the interest rate is 7.5 percent per annum. It takes 115 months to double the invested amount at the current rate of interest. That means the investment will be nine years and seven months. Those who aim for long term investment will benefit from this scheme. It is a reliable investment plan for risk averse people.
Kisan Vikas Patra benefits are as follows
It is an investment option that is preferred by many people who prefer traditional investments in the country. Suppose a person invests Rs. 50,000 under a scheme that doubles the investment in 10 years. Savings of Rs 1 lakh will be returned after the maturity of the investment.
An account can be opened under the scheme as an individual or a joint account of up to three adults. Guardians can open an account on behalf of a minor or a mentally challenged person. Minor children above 10 years of age can also have an account in their own name. At the same time deductions under Section 80C of the Income Tax Act are not available for investment under the scheme. Income from Kisan Vikas Patra deposits is taxable.
Can I withdraw my deposit early?
Kisan Vikas Patra deposit can be withdrawn subject to conditions before maturity. The amount can be withdrawn after two years and six months from the date of investment.
A depositor can also transfer the account to another person.
KVP account can be transferred from one person to another only with conditions.
In case of death of the account holder, the deposit can be transferred to the name of the nominee.