Kisan Vikas Patra is a scheme that encourages people to save small amounts of money. The Government of India regulates and administers it through the Department of Posts. Kisan Vikas Patra calculator can help you calculate the returns you get on your investment during a fixed period.
Here, we talk how to use Kisan Vikas Patra calculator and estimate returns on your KVP investments.
What is Kisan Vikas Patra?
Kisan Vikas Patra (KVP) is an old and popular option among investors from the various investment options available. It is a completely safe investment because the Central Government backs it. As the name implies, the funds collected through this scheme are used for farmer welfare and development, representing a critical pillar in our country’s development.
How Does the KVP Maturity Calculator Work?
The Kisan Vikas Patra calculator operates on the compounding principle, with the return formula being the same as the compound interest formula.
A = p(1+r/n) ^(nt)
The variables stand for the following descriptions.
A= Maturity amount
P= Principal amount or the initial amount
r= Rate of interest
t= Time period of investment
n= Number of times interest compounds within the time period
The maturity amount is computed after entering the total investment amount and the date of investment into the specified fields of a KVP interest calculator.
Following that, the user would be shown the maturity amount, maturity date, and total amount of interest on a KVP interest calculator year-wise.

How Does KVP Encashment Work?
Investors can withdraw KVPs at the Post Office where they are originally from. But this can only be done if the officer in charge of the bank or post office agrees and provides proof. In case they don’t then investor can withdraw it at any other post office as well. A KVP interest rate calculator is one of the easiest ways for you to calculate the exact returns on your investment on maturity. This calculator is available online and can help you determine the maturity amount based on the current scheme tenure and return rates.
Benefits of KVP
- Assured Returns – Regardless of the market fluctuations, if a person has invested in KVP, they will receive a guaranteed sum at the end of maturity.
- Compounding Interest – The interest accrued is compounded yearly, ensuring higher returns on the principal sum invested.
- Loan Facility – Your KVP certificate may be used as security or collateral when applying for secured loans. Such loans have a relatively lower interest rate.
How to Calculate Amount Paid on Premature KVP Encashment?
There is a chance of premature KVP encashment in the following circumstances:
- The holder’s death, or if there are joint holders, the death of either holder.
- Upon forfeiture of a government official with a gazette’s pledge.
How to Redeem Your KVP Investment?
You can redeem your KVP investment by visiting your nearest post office branch but you can also redeem it at any other post office in the nation. If you redeem your KVP from a different post office than where it is from then you must present the identity slip. Otherwise, the post office where it was purchased would need to confirm it.
Apart from easy redeeming process, KVP investment has many other benefits as well. They are:
- Long-Term Savings – Investors can purchase the Kisan Vikas Patra certificates for as little as Rs. 1000. There is no upper limit to the amount you can invest. The investment value will be twice as much in 124 months, or ten years and four months. The Kisan Vikas Patra certificate itself declares the value the holder will receive upon completion of the term.
- Fixed Interest Rate – Depending on the number of years invested in Kisan Vikas patra at the time of purchase, the effective interest rate changes. 6.9% annually is the current interest rate. for the quarter beginning on July 1, 2021, and ending on September 30, 2021, compounded annually.
- Physical Investment Instruments – The Kisan Vikas Patra saving scheme is available in the form of a printed scheme certificate that can be saved in physical form. This certificate has no depository form and cannot be traded on the secondary market.
- Fixed Lock-in Period – This scheme has a fixed lock-in period of two and a half years. If you have any financial emergency, you can cash this scheme early only after 2.5 years from the date of issuance.
- Collateral for Loan: When applying for a loan, Investors can use the Kisan Vikas Patra certificate as collateral. Before issuing you a loan, most banks and financial institutions will accept this certificate as collateral.
Also Read: Investment Plan for 3 Years
How Much Interest Can You Earn From KVP at Maturity?
KVP takes 9 years, 2 months to reach maturity. Interest is due on the amount owing even if the subscriber receives the money at maturity. The amount of interest received is equal to the interest on savings accounts.
Currently, the Kisan Vikas Patra (KVP) scheme currently has an interest rate of 6.9 percent.
Also Read: Best Investment Plan for 1 Year
KVP Calculator: FAQs
When using a KVP calculator, users must enter their initial investment amount and date in order to receive the results for their maturity value.
In order to determine the applicable interest rate of an invest, the calculator needs the size of the investment and the date of your investment.
Yes, you can but it will fall under premature withdrawal. To take advantage of KVP premature withdrawal, the account holder must notify the Post Office in writing, after which the money will be disbursed.
After the scheme’s tenure is over, the invested amount is doubled. As an illustration, if someone invests Rs. 10,000, at maturity they will receive Rs. 20,000.
Both are long-term investments with comparable interest rates. Under Section 80C, which is not present in KVP, the investment as well as interest reinvested until maturity may be adjusted against taxable income earned.
Yes, No tax exemptions apply to interest collected on Kisan Vikas Patra (KVP). When redeemed, the interest is taxed according to the investor’s applicable income tax bracket.
No, the interest earned on Kisan Vikas Patra are not tax-free.
Read more about Post Office PPF.