A small financial savings scheme referred to as Kisan Vikas Patra (KVP), which is backed by the federal government and ruled by the Department of Posts beneath the route of the Ministry of Communications, is offered to traders who usually are not considering taking over lots of dangers however want to see their cash develop by twofold over time. There are 9 small financial savings plans out there from the Department of Posts, every with distinctive options and benefits. Because KVP is a guaranteed-to-double funding product with a 124-month maturity time, traders with long-term monetary targets however lack market consciousness can use it to supply risk-free long-term beneficial properties.
Kisan Vikas Patra Calculator
The Ministry of Finance saved the identical rates of interest out there for the quarter ending September 2022. KVP will thus present a 6.9% yearly compound rate of interest. Investors ought to be conscious, nonetheless, that the federal government modifies the rates of interest of Post Office Small Savings Accounts on a quarterly foundation. A minimal funding of Rs. 1000 and deposits in multiples of Rs. 100 with no most restrict are required to put money into KVP for a interval of 124 months (10 years and 4 months).
Therefore, should you keep invested for all the period with out taking any withdrawals, your cash will double because of the compounding impact. Therefore, should you make investments Rs. 5 lakhs at a 6.9% rate of interest, you’ll obtain Rs. 10 lakhs at maturity, which is able to embrace the entire curiosity earned of Rs. 5 lakhs. The funding return could be ₹1 Cr if an investor invested ₹50 lakh in KVP over the period of 124 months.
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Kisan Vikas Patra Calculator (fintra.co.in) Features of Kisan Vikas Patra
A single grownup, a joint account (as much as 3 adults), a guardian on behalf of a minor or an individual of unsound thoughts, a minor beneath 10 years previous in his personal identify, and any variety of accounts could be established beneath the plan are all eligible for opening Kisan Vikas Patra (KVP) accounts. Tax-savers ought to be conscious that this plan provides no tax advantages, and the earned curiosity is topic to taxation as “income from other sources.”
Premature withdrawals from a Kisan Vikas Patra (KVP) account are permitted within the following circumstances: within the occasion of the account holder’s loss of life; upon forfeiture by a pledge who’s a Gazette official; upon courtroom order; or after two years and 6 months have handed from the date of deposit. In the conditions talked about above, a Kisan Vikas Patra (KVP) account may also be transferred from one particular person to a different.
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