Kisan Vikas Patra: If you are aiming to invest in small savings schemes, then you can consider Kisan Vikas Patra, offered by the Post Office.It is one of the best best small savings scheme from the government stable. Launched in 1988, the scheme offers the sum guaranteed inspite of market fluctuations. This particular scheme was originally intended for the farming community and the focus was on encouraging them to save for rainy days. Kisan Vikas Patra is basically a certificate scheme from the Indian post office. Let us know in detail about the product and why should you invest.

What's the rate of interest?

At present, KVP offers an interest rate of 6.9% compounded annually. In case you are tying to check on the returns, then KVP will take 124 months or 10 years and four months to double your money at the current interest rate.

How to open the account?

You can open an KVP account with a minimum amount of ₹1,000 and in multiples of ₹100 thereafter. There is no maximum limit to the amount you want to invest. KVP can be purchased from any Departmental Post office and it allows the nomination facility.

A KVP account can be opened by an individual or as a joint account with up to three adults. A guardian on behalf of minor or on behalf of person of unsound mind can also open an account. Also, a minor above 10 years can also have a KVP account in his own name.

What are the conditions of closing the account?

You can open any number of accounts under the scheme. In fact the account can be prematurely closed any time before maturity subject to the following conditions:

1. On the death of a single account, or any or all the account holders in a joint account
2. On forfeiture by a pledgee being a Gazette officer
3. When order by court
4. After 2 years and 6 months from the date of deposit

The scheme can be transferred from one person to another person in the following conditions:

1. On the death of account holder to nominee/legal heirs.
2. On the death of account holder to joint holder.
3. On order by the court.
4. On pledging of account to the specified authority.