The Kisan Vikas Patra (KVP) is a government-backed small savings schemes designed to promote long-term saving habits among Indian citizens. Open to all citizens, including minors above 10 years old, KVP offers a secure and attractive option for those seeking guaranteed returns on their investment.
To invest in KVP, any Indian citizen can visit a designated post office branch and submit the required Know Your Customer (KYC) documents. The scheme provides fixed interest rates set by the government at the time of investment. The current rate (as of June 21, 2024) is 7.5%. You can invest any amount in multiples of Rs. 1,000 with no upper limit. Let’s take a look at the list of banks that offer Kisan Vikas Patra (KVP).
Kisan Vikas Patra (KVP) was primarily available at post offices but some select public sector banks in India now also offer KVP among their other loan products.
KYC documents are required irrespective of whether you go to a bank or a post office.
Features of Kisan Vikas Patra in Bank
Kisan Vikas Patra is a savings certificate scheme launched by the Indian government to encourage small savings, particularly among rural and agricultural communities. It’s a fixed-income investment option available at post offices and designated banks.
The table below presents the important features of Kisan Vikas Patra (KVP).
| Feature | Description |
|---|---|
| Minimum Investment | Rs. 1,000 |
| Maximum Investment | No maximum limit |
| Available Denominations | Rs. 1,000, Rs. 5,000, Rs. 10,000 & Rs. 50,000 |
| Interest Rate | 7.5% (as of June 21, 2024) |
| Maturity Period | 115 months (approximately 9 years and 7 months) |
| Guaranteed Returns | Yes, investment doubles at maturity |
| Lock-in Period | 2.5 years |
| Premature Encashment | Allowed after 2.5 years, in blocks of 6 months |
| Loan Facility | Loan can be availed against KVP certificate |
| Nomination Facility | Available |
Note: Interest rates are subject to change by the Government of India.
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List of Banks That Offer Kisan Vikas Patra
Kisan Vikas Patra (KVP) is a government-backed savings scheme offered by India Post and several public sector banks in India. It offers guaranteed returns with interest compounded annually, making it a secure and attractive option for long-term investors.
Here’s a list of some of the banks that offer Kisan Vikas Patra.
| State Bank of India (SBI) | Bank of Baroda | Allahabad Bank |
| Canara Bank | Punjab National Bank | Andhra Bank |
| State Bank of Patiala | State Bank of Bikaner and Jaipur | ICICI Bank |
| Axis Bank | Union Bank of India | Bank of Maharashtra |
| Central Bank of India | Corporation Bank | Indian Bank |
Kisan Vikas Patra Interest Rate in Bank
The current interest rate of KVP is 7.5% per annum (KVP interest rate for senior citizens remains the same). This interest rate of KVP was effective from April 1, 2023, to June 30, 2024 (Q1 FY 2024-25). It means that the 7.5% rate applies specifically to investments made during this period. The government may set different interest rates for subsequent quarters.
Interest rates are periodically reviewed by the government. It can be adjusted based on economic conditions and the adjustments typically happen every quarter. However, interest rates for KVP can change.
Past Interest Rates of Kisan Vikas Patra
To get a full picture of how KVP interest rate changes over a period of time would help you make better investment choices. The table below provides the historical interest rates of KVP between Quarter 1 and Quarter 4 of a year.
| Financial Year | January-March (Quarter 1) | October-December (Quarter 4) |
|---|---|---|
| 2023-2024 | 7.5% | 7.5% |
| 2022-2023 | 7.2% | 7.0% |
| 2021-2022 | 6.9% | 6.9% |
| 2020-2021 | 6.9% | 6.9% |
| 2019-2020 | 7.6% | 7.6% |
| 2018-2019 | 7.7% | 7.7% |
| 2017-2018 | 7.3% | 7.5% |
| 2016-2017 | 7.7% | 7.7% |
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Growth of Investment with Kisan Vikas Patra
Kisan Vikas Patra (KVP) grows your money through a combination of guaranteed interest and compounding. The government sets a fixed interest rate, currently at 7.5%, which you earn annually. Here, instead of just receiving that interest, it gets added to your principal amount. So, in subsequent years, you earn interest on a larger amount and accelerate your money’s growth over the 115-month maturity period. Even after maturity, the interest keeps compounding until you withdraw your funds.
The table below shows the KVP returns for an investment of Rs 1,000.
| Time Period | Bank Account Balance |
|---|---|
| 2.5 years – Less than 3 years | ₹1,173 |
| 3 years – Less than 3.5 years | ₹1,211 |
| 3 years – Less than 4 years | ₹1,251 |
| 4 years – Less than 4.5 years | ₹1291 |
| 4.5 years – Less than 5 years | ₹1,333 |
| 5 years – Less than 5.5 years | ₹1377 |
| 5.5 years – Less than 6 years | ₹1,421 |
| 6.5 years – Less than 7 years | ₹1,515 |
| 7 years to Less than 7.5 years | ₹1564 |
| 7.5 years – Less than 8 years | ₹1,615 |
| 8 years to Less than 8.5 years | ₹1667 |
| 8.5 years – Less than 9 years | ₹1,722 |
| 9 years to before maturity | ₹1778 |
| On maturity of the certificate | ₹2,000 |
KVP Eligibility Criteria
To invest in Kisan Vikas Patra (KVP), you’ll need to be eligible for certain criteria.
- Any resident Indian can invest in KVP, including minors (by an adult).
- NRIs, HUFs, Trusts, companies, and charitable organizations are not eligible.
Documents Required to Invest In Kisan Vikas Patra
There are certain documents you will need to submit to invest in Kisan Vikas Patra (KVP), these are:
- Kisan Vikas Patra Application Form (Form A)
- KYC Documents (Identity & Address Proof): Aadhaar card (Aadhaar is now mandatory), PAN Card, Voter ID Card, Passport, and Driving License.
Kisan Vikas Patra Calculator
Calculate KVP maturity amount with ease using the online KVP calculator. The scheme dobles your investment in the span of 115 months (9 years and 7 months). Input your invested amount to chekc your KVP maturity amount.
Check out more on Kisan Vikas Patra from the link below:
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Steps to Invest in KVP
Kisan Vikas Patra (KVP) is a safe and secure investment option offered by the Indian government. It provides attractive interest rates and is a good way to grow your savings over a fixed period. There are two ways to invest in KVP.
Offline Process To Invest In KVP
- Step 1: Visit your nearest post office or authorized bank branch.
- Step 2: Collect and fill out Form A (application form).
- Step 3: Submit the form along with KYC documents (ID & address proof – PAN, Aadhaar, Voter ID, Driver’s License, or Passport).
- Step 4: Make the investment amount payment (cash, cheque, demand draft).
Online Process To Invest In KVP
- Step 1: Visit the India Post website or your bank’s internet banking portal.
- Step 2: Download Form A and fill it out electronically.
- Step 3: Submit the form along with scanned copies of KYC documents.
- Step 4: Once verified, make the online payment.
Besides Kisan Vikas Patra, you can also check and invest in other post office saving schemes with better returns. Check the table below with links for details: