Kisan Vikas Patra is a scheme run by the Indian government for investors. Kisan Vikas Patra is a scheme where the amount invested doubles after 113 months or 9 years and 5 months.
The interest rate is revised every quarter [3 months]. However, the interest rate at the time of deposit remains fixed for the entire term of the deposit. It is just that if a new deposit is made, the interest rate for that quarter will be paid.
Since it is a scheme guaranteed by the Indian Government, there will never be a loss on the investment.
What is the tenure of Kisan Vikas Patra deposit?
On July 1, 2019, it will be 9 years and 5 months, or 113 months.
After 30 months, the Kisan Vikas Patra can be sold before its expiry date. The only thing is that you will have to pay a penalty. According to the current figures, if you sell it after 30 months, you will get Rs 1173 for Rs 1000. If you sell it after three years, you will get Rs 1211 and if you sell it after three and a half years, you will get Rs 1251. As the expiry date increases, the amount will increase. You will get double after 9 years and 5 months.
What is the minimum annual deposit required for Kisan Vikas Patra?
The minimum is Rs. 1000. There is no limit to the maximum amount that can be invested. You can invest up to any amount of rupees.
How many times should one invest in Kisan Vikas Patra every year?
Once you invest and purchase a certificate, you don’t need to invest every month. If you invest the next month, you will receive the next certificate based on that month’s interest.
How much can be invested in Kisan Vikas Patra every year?
You can invest up to any amount.
How to start Kisan Vikas Patra?
Kisan Vikas Patra can be purchased at post offices or nationalized banks like SBI.
Who can buy Kisan Vikas Patra?
Anyone who is a permanent resident of India can purchase a Kisan Vikas Patra.
What is the return on investment in Kisan Vikas Patra ?
The current annual interest rate is 7.6 percent. You will get back double the amount invested in 9 years and 5 months. This is the rate as of July 1, 2019.
After tax calculation:
There are no tax benefits for Kisan Vikas Patra investment. Tax has to be paid on the interest.
If you are a 5% tax payer, your 7.6% interest rate will become 7.22% after tax.
If you are a 20% tax payer, your 7.6% interest rate will become 6.08% after tax.
If you are a 30% tax payer, your 7.6% interest rate will become 5.32% after tax.
What is the fee for Kisan Vikas Patra deposit ?
There are no other fees.
Other benefits
Apart from being a very secure investment, there are no major benefits in terms of interest or taxes.
Do you want to invest in Kisan Vikas Patra?
When it comes to tax, investing in Public Provident Fund (PPF) is better than investing in Kisan Vikas Patra .
Kisan Vikas Patra is an option for those who only need a secure investment as there is no upper limit on the amount that can be invested. Just remember that inflation is likely to outpace the growth of the investment.
