Benefits of buying Kisan Vikas patra over regular Bank FD: What should you choose?

New Delhi: We have just entered 2021, and must be prepared to make all the wise investment decisions in the new year.

While many of us will have several plans on investment and savings, a wisely chosen option is surely going to make us reap long term benefits.

Those with long term goals and believer of investments in traditional instruments have many lucrative government schemes to choose from. One such traditional investment option is Post office savings schemes. Lately these schemes have started to give better interest return than regular bank FDs too.

Maturity period and interest rates of Kisan Vikas Patra

Since April 01, 2020, investors are being given interest rates of 6.9 percent compounded annually. The amount you will invest in Kisan Vikas Patra doubles in 124 months (10 years and 4​​​ months).

Meanwhile, for most bank FDs the interest is lower than 6 percent. Thus the interest rate offered by Kisan Vikas Patra makes it look more attractive.

Account limit of Kisan Vikas Patra

While you need minimum of Rs 1,000 and in multiples of Rs 100 there is no maximum limit for investing in Kisan Vikas Patra.

Kisan Vikas Patra certificate can be purchased by the following:

(i) a single adult

(ii) Joint A Account (Maximum 3 adults)

(ii) Joint B Account (Maximum 3 adults)

(iv) Minor above 10 years of age

(i) An adult on behalf of a minor.

(ii) A guardian on behalf of a person of unsound mind

Kisan Vikas Patra is being issued in the shape of Passbook. It can be purchased from any Departmental Post office. The facility of nomination is also available. KVP Certificate can be transferred from one person to another and from one post office to another. Certificate can be encashed after 2 & 1/2 years from the date of issue.