Kisan Vikas Patra facts for kids
Kisan Vikas Patra (KVP) is a special savings plan from the Government of India. It was brought back on November 18, 2014. The main idea behind KVP is to help people save their money safely. It encourages them to put their savings into a trusted government plan instead of risky ones. This plan helps your money grow over time.
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What is Kisan Vikas Patra?
Kisan Vikas Patra is like a savings bond. It offers a good interest rate, which means your money earns extra money while it's saved. Currently, the interest rate is 7.6% per year. This plan is designed to make your investment double in value. It takes about 113 months, which is 9 years and 5 months, for your money to double.
Who Started KVP?
The KVP plan was started by India's Finance Minister, Arun Jaitley. It is managed by the Directorate of Small Savings, which is part of the Government of India. You can buy these savings bonds at any Post Office across the country.
Getting Your Money Back
You can take your money out of a KVP after two and a half years from the day you bought it. When you do, you get back the amount you invested plus the interest it has earned. However, it's important to know that there are no tax benefits for the money you earn from KVPs.
How to Buy a KVP
When you buy a Kisan Vikas Patra, the Post Office gives you a special document. This document is called a certificate of deposit. It shows your name, the amount of money you invested, and the date when your KVP will be ready to give you double the money (its maturity date).
KVP Amounts and Who Can Invest
KVPs are available in different amounts, making it easy for many people to invest. You can buy them for 1,000, 5,000, 10,000, or 50,000 Rs.. Any adult who is a citizen of India can invest in Kisan Vikas Patra. It's a simple and safe way to save for your future.
