Kisan Vikas Patra Scheme
Kisan Vikas Patra is a plan that allows people to save money. It is an effort of the Indian government to encourage modest savings in India. The scheme is intended to provide a fixed rate of interest to investors who invest a minimum sum.The KVP interest rate on money invested in the scheme is set to grow, and the money that is eventually repaid to you remains tax-free. It is a government-backed scheme with minimal risks, and you can be assured of getting the principal amount.The application process for KVP is simple, and the scheme is open to anyone above 18 years of age who has an active bank account. The KVP is 124 months (10 years 4 months) extended India Post savings certificate that works on the principle of passive investing.Key takeaways- If you want to invest in something safe that gives assured returns, investing in Kisan Vikas Patra with a reasonable KVP interest rate is a great decision.
- Anyone over the legal age who has a current bank account and can get to a branch is eligible for the service.
- If you want to withdraw money before the maturity period, you need to wait for the lock-in period of 2 and a half years.

Kisan Vikas Patra (KVP) Types
Are you thinking of investing money in Kisan Vikas Patra? The returns are attractive, along with a reasonable KVP interest rate. Do you know what kind of KVP you should invest in?Single Holder Certificate
Single-holder certification is among the common types of Kisan Vikas Patra. It is given to an adult for themselves, on behalf of a child, or for the benefit of a child.Joint ‘A’ Certificate
The ‘A’ form certificates are joint insurance plans paid to individuals who act as co-owners in the scheme or to the one who survives till the maturity of the scheme.Joint ‘B’ Certification-
The money is also granted jointly to two adults, which is paid to any one of the co-holder or the one who survives till the KVP plan is complete.Who is Eligible to Purchase a KVP?
- You need to be an adult Indian citizen.
- If you are a parent or guardian, you may also invest on behalf of minors and mentally disabled individuals.
- Kisan Vikas Patra is not open to non-resident Indians (NRIs) and HUFs.
KVP Interest Rate
Kisan Vikas Patra (KVP) interest rates changes often, current interest being offered (under the savings scheme) is 6.9 from 1 April 2021 to June 2022.Quarter | Financial Year 2021-2022 | Previous Financial Years | ||||
Months | 2021-2022 | 2020-2021 | 2019-2020 | 2018-2019 | 2017-2018 | 2016-2017 |
April-June | 6.9% (maturity 124 months) | 6.9% (maturity 124 months) | 7.7% (maturity 112 months) | 7.3% (maturity 118 months) | 7.6% (maturity 113 months) | 7.8% (maturity 110 months) |
July-September | 6.9% (maturity 124 months) | 6.9% (maturity 124 months) | 7.6% (maturity 113 months) | 7.3% (maturity 118 months) | 7.5% (maturity 115 months) | 7.8% (maturity 110 months) |
October-December | 6.9% (maturity 124 months) | 6.9% (maturity 124 months) | 7.6% (maturity 113 months) | 7.7% (maturity 112 months) | 7.5% (maturity 115 months) | 7.7% (maturity 112 months) |
January-March | To be announced | 6.9% (maturity 124 months) | 7.6% (maturity 113 months) | 7.7% (maturity 112 months) | 7.3% (maturity 118 months) | 7.7% (maturity 112 months |

Interest Applicability on Premature Withdrawal of KVP
Kisan Vikas Patra (KVP) is among the most common investments made by investors in India. Kisan Vikas Patra rate is subject to vary based on the Finance Ministry’s statements.The Government’s KVP interest rate is always calculated as per a fixed pattern. This avenue for long-term investment is trendy among individual investors looking to invest lump sums. It will double your contribution in the maturity period of 10 years. The KPV interest rate applicable to the current year (Q1 FY 2022-23) is 6.9% per annum.You can also withdraw the money you invest in a Kisan Vikas Patra plan before maturity. However, there are specific rules surrounding such an early withdrawal. It has a two-year and six-month lock-in term, after which the investments can be withdrawn.The Government of India periodically announces the Kisan Vikas Patra interest rate and it changes every quarter. The table below summarises the current and previous KVP interest rates applicable in India.KVP Interest Rate 2022
Quarter/Financial Year | 2016 – 17 | 2017 – 18 | 2018 – 19 | 2019 – 20 | 2020 – 21 | 2021 – 22 |
April – June | 7.8%- 110 months of maturity period | 7.6% – 113 months of maturity period | 7.3% – 118 months of maturity period | 7.7% – 112 months of maturity period | 6.9% – 124 months of maturity period | 6.9% – 124 months of maturity period |
July – September | 7.8% – 110 months of maturity period | 7.5% – 115 months of maturity period | 7.3% – 118 months of maturity period | 7.6% – 113 months of maturity period | 6.9% – 124 months of maturity period | 6.9% – 124 months of maturity period |
October – December | 7.7% – 112 months of maturity period | 7.5% – 115 months of maturity period | 7.7% – 112 months of maturity period | 7.6% – 113 months of maturity period | 6.9% – 124 months of maturity period | Not announced yet |
January – March | 7.7% – 112 months of maturity period | 7.3% – 118 months of maturity period | 7.7% – 112 months of maturity period | 7.6% – 113 months of maturity period | 6.9% – 124 months of maturity period | Not announced yet |
Benefits of KVP
Regardless of market fluctuations people who invest in this scheme get guaranteed returns. Furthermore, the interest is accrued by the end of the fiscal year and the amount can be withdrawn after a total of 113 months.The KVP scheme holder can choose to not withdraw the accrued sum by maturity. In such scenarios the total corpus will continue to accrue interest to offer significant returns to the account holder.Guaranteed Return on Investment on Kisan Vikas Patra Interest Rate
One of the foremost benefits of the Kisan Vikas Patra is that the return on investment is guaranteed. While the interest rate might vary the final sum is assured. Curated specifically for people in the farming community, the scheme is a productive way to secure ample financial resources for adversities.
Did you know?
KVP debuted in 1988, but it was cancelled in 2011, and relaunched again in 2014Conclusion
When you start investing in Kisan Vikas Patra, you need to ensure that you get a good return on your investment. This blog is intended to share all the KVP interest rates and eligibility criteria as well as other information required for investing in it.With the post office being a trusted establishment for decades, it is obvious that KVP is a reliable and secure way to invest your hard earned money. It is considered a trustworthy source to earn from the investment, but it is recommended to read all the terms and conditions carefully before investing in the Kisan Vikas Patra or any other scheme. The Kisan Vikas Patra interest rate is among its most unique features. The KVP interest rate is guaranteed by the Government of India at the time of issue and has remained unchanged for years.Frequently asked questions
There are currently no tax benefits while investing in Kisan Vikas Patra (KVP). The interest you get is taxable under ‘Income from Other sources’, and is to be paid annually. Furthermore, TDS of 10% is also deducted from the interest, but the final amount on maturity is exempted from tax deductions.
It is obligatory to cash the certificate on its maturity date. If you don’t do it within a month of its maturity date, you will be charged the post office savings interest rate on the entire amount payable to you at maturity.
The payments will be made to your bank or post office account. As a result, having a savings account is required to retrieve the maturity value.
It was initially started for farmers but later they decided to open it for everyone. Therefore, now every citizen of India above 18 years of age can apply for it.
NRIs and HUFs are not permitted to invest in KVP. This is because Kisan Vikas Patra is among the Government of India’s schemes, which may not be purchased by NRIs or those Indians having a foreign address.
While the KVP application form can be found on the internet, the certificate cannot be accessed through any online medium.
In order to get a duplicate KVP certificate, the scheme holder needs to visit the nearest post office to register for a duplicate certificate. The post office will conduct all necessary verification, consult with the bank before dispatching the duplicate certificate.
No, the KVP can only be encashed from the post office from where the certificate was initially purchased.
Whereas, if you’re flexible and are looking for higher returns, PPF should be opted.
Fixed deposit (FD) is a 5 year tax saving investment that qualifies fir tax benefits under Section 80C of Income Tax Act. Investing in Kisan Vikas Patra (KVP) will double the principal amount on maturity. The investment plan that suits your future plans and motives should be opted.
No, in KVP, interest earned is taxable under head income.