Curated By: Business Desk
Last Updated: September 11, 2023, 12:09 IST
The India Post operates numerous secure small savings schemes that offer attractive interest rates to investors. Among these schemes, there’s one called Kisan Vikas Patra which has the unique feature of doubling your money over time.
Currently, Kisan Vikas Patra offers an annual interest rate of 7.5 per cent which is equivalent to the 5-year time deposit scheme offered by the post offices. Based on this interest rate, your investment in the Kisan Vikas Patra Scheme would double in approximately 115 months, equivalent to 10 years and 3 months. However, it’s important to be aware that there are certain drawbacks associated with this investment. Therefore, it’s advisable to thoroughly understand both the advantages and disadvantages before making an investment decision.
Kisan Vikas Patra, a government of India one-time investment scheme, offers the benefit of doubling your money within a specified period. This scheme is accessible at all post offices and major banks across the country. Starting from April 1, 2023, the Central government has raised the annual interest rate on Kisan Vikas Patra from 7.2 per cent to 7.5 per cent.
To invest in Kisan Vikas Patra, the investor must be at least 18 years old. This scheme offers both single and joint account options. Additionally, minors can also take advantage of this scheme under the supervision of a guardian. It is applicable to Hindu Undivided Families (HUF) and Trusts, with the exception of Non-Resident Indians (NRIs). Certificates for investment are available in denominations of Rs 1,000, Rs 5,000, Rs 10,000 and Rs 50,000, which can be purchased according to the investor’s preferences.
When you invest in Kisan Vikas Patra, you are required to pay tax on the interest income that you earn from the scheme. It’s important to note that under Section 80C of the Income Tax Act, you do not receive any tax benefit on the amount you deposit in this scheme. So, while your investment can grow with the attractive interest rate, it doesn’t provide tax deductions like some other investment options covered under Section 80C.