Post office scheme can double your investment: Know more

New Delhi: India’s post system offers numerous investment opportunities to individuals who are looking to save or park their money in a safe scheme. Post Office Schemes can be a great opportunity to save more money for people who do not like risk and have apprehensions about parking their money in the stock market.

The schemes offered by India Post are backed by the government, hence they are quite safe. Another added benefit is tax exemption under section 80C that investors can receive for several schemes available under post office saving schemes.

Kisan Vikas Patra scheme was first launched in 1988 by India Post and offers an interest rate of 6.9 percent. More details:

  1. Interest Rate

In this saving scheme, the interest rate is 6.9 percent which is compounded annually. The invested sum doubles in 10 years and 4 months. The minimum amount required to open an account is Rs 1,000 and there is no maximum limit.

 

  1. Who is eligible?

According to the India Post website, eligible investors include:

  • A single adult
  • Joint Account (up to 3 adults)
  • A guardian on behalf of a minor or behalf of a person of unsound mind
  • A minor above 10 years in his name.
  • It must be noted that any number of accounts can be opened under the scheme.

 

  1. Maturity

The deposit will mature on the maturity period prescribed by the Ministry of Finance from time to time as applicable on the date of deposit. While the scheme matures in 124 months, the lock-in period is 30 months.

A KVP account can be prematurely closed any time before maturity subject to the following conditions given below:

(i) On the death of a single account, or any or all the account holders in a joint account

(ii) On forfeiture by a pledgee being a Gazette officer

(iii) When ordered by the court

(iv) After 2 years and 6 months from the date of deposit.

 

  1. Transfer of account from one person to another

KVP can be transferred from one person to another person on the following conditions only given below:

(i) On the death of account holder to nominee/legal heirs

(ii) On the death of the account holder to the joint holder(s)

(iii) On order by the court

(iv) On pledging of account to the specified authority.

 

Investors in this scheme can use their KVP certificate as security to avail of secured loans. The interest rate is comparatively lesser for such loans.

Comments are closed.