Indian Post Office is a government organisation that provides its customers and employees with numerous benefits in terms of saving and increasing their hard-earned money. In such a scenario, Indian Post has some attractive schemes that help you to double your investment over a certain period of time.
Let us examine the details of thePost Office scheme to double your money and any special benefits available for people who are eligible for the scheme.
Introduction
A Post Office is one of the financial institutions that guarantees to double your money with less risk and stable returns. However, investing in the stock market is subject to market risks. If you want to invest in schemes that are not volatile in nature, post office schemes are an ideal option.
Post Office Scheme To Double Money In 2024
The Post Office scheme that doubles your money is the Kisan Vikas Patra scheme. It also guarantees returns. This is a type of saving scheme that is backed by the Indian Government. As per this scheme, your money is doubled within a period of 115 months, i.e., 9 years and 7 months.
Kisan Vikas Patra Eligibility Criteria
The following can open a Kisan Vikas Patra account to double their money:
- An individual above 18 years of age.
- Joint account holder (up to a maximum of 3 adults).
- A minor who is above 10 years of age.
- A guardian on behalf of an individual with an unsound mind or minor.
The minimum deposit amount for this Post Office scheme to double the money is Rs.1,000 and in multiples of Rs.100. Nonetheless, there is no maximum deposit limit. You are eligible to open any number of accounts you want under this scheme. Moreover, the deposited sum will mature within the specific time period as directed by the Ministry of Finance as promised.
Kisan Vikas Patra Features
Some key features of the Post Office scheme to double the money are discussed below:
- You can close your KVP prematurely at any time. However, there are a few conditions that you have to keep in mind. These are:
- As per orders by the court.
- In case of death of a single account holder or death of all or any account holder in case of joint account.
- After the completion of 2 years and 6 months from the deposit date.
- During forfeiture by a pledgee being a Gazetted officer.
- Pledging or transfer of KVP account as security can be made to some specific authorities, who are:
- Governor of the State or President of India.
- Private or Public corporation, local authority or government company.
- Scheduled bank, Cooperative bank, RBI or Cooperative society.
- Housing finance company.
- You can transfer or pledge your KVP account as a security by filling up the application form prescribed by any concerned India Post branch. Make sure to support the same with an acceptance letter from the pledgee.
- The interest of the KVP scheme is compounded annually.
Kisan Vikas Patra Interest Rate
The interest rate applicable on your Kisan Vikas Patra account is 7.5% p.a for FY 23-24. This interest rate helps this Post Office scheme double the money within 9 years and 7 months or 115 months. It is important to remember that your interest in the KVP account is compounded annually and that you are eligible for premature withdrawal based on certain conditions.
Kisan Vikas Patra Rules
There are a few rules you need to keep in mind regarding transferring a Kisan Vikas Patra account from one individual to another. They are as follows:
- On the death of an account holder, the legal heirs or nominees will receive the maturity amount.
- The post office will transfer an account if there are orders for the same from the court.
- In case of the death of account holders, the joint holders will receive the amount.
- If you are pledging the account to specific authorities, then a transfer might be possible.
Post Office Scheme To Double The Money For Senior Citizens
Senior citizens are eligible to apply and invest their money in the Kisan Vikas Patra scheme to double their money within a period of 9.7 years. However, if you do not wish to invest your money in KVP and opt for something specific to senior citizens, then India Post has the option of a Senior Citizens Savings Scheme Account (SCSS) for you.
Below are some key features that you must note before opting for SCSS as a Post Office scheme to double the money:
- The interest rate applicable for this scheme is 8.2% p.a.
- The calculation of interest takes place from the date of deposit to 31st March, 30th September or 31st December in the first instance.
- The interest payout will be on 1st April, 1st July, 1st October and 1st January.
- Individuals above the age of 60 years are eligible for this scheme.
- The total period required to double your investment in this scheme is 8.8 years.
- You can open individual accounts or joint accounts with your spouse.
- The total deposit amount for a joint account is attributable to the first account holder.
- The minimum deposit sum is Rs.1,000, in multiple of Rs.1,000 thereof, and the maximum amount is Rs. 30 lakhs.
- Premature closure of your SCSS account is possible, however, based on a few conditions.
- Account extension is possible for a maximum of 3 years by the account holder starting from the maturity date.
- Your interest on the SCSS account is taxable if the total amount surpasses Rs.50,000 within a financial year.
- Deduction of TDS is done as per the prescribed rate on the total interest payable.
Conclusion
Overall, investing your in different schemes offered by India Post is generally a safe and secure choice to save and grow money. The schemes are backed by the Indian government and the investment sum is minimum with high returns. While understanding the aspect of the Post Office scheme to double the money, Kisan Vikas Patra stands as the best option. You can easily double your investment in a span of 9.7 years and can prematurely withdraw the sum in case of emergencies by following the stated conditions.
However, for senior citizens, the availability of the Senior Citizens Savings Scheme acts as another option to double your money. Therefore, make sure to read all the terms, conditions and benefits of the schemes to avoid facing issues regarding the investment of your hard-earned money.
Frequently Asked Questions
What is the post office scheme to double the money?
The Post Office scheme to double the money is Kisan Vikas Patra. As per this scheme, you can double your investment in a span of 115 months or 9 years and 7 months. 7.50% interest is payable on this scheme, and the minimum investment amount for this plan is Rs.1000.
Is the Post Office scheme to double the money safe?
Yes. Kisan Vikas Patra is the scheme by the Post Office to double your money in a tenure of 9.7 years. This investment option is safe since the plan is backed by the Government of India. The Post Office is a safe financial institution to save your money in different schemes. Hence, it makes KVP a secure option to double your money as well.
How much can I invest in the post office scheme?
There is no maximum limit towards investment in the Kisan Vikas Patra scheme. However, you have to deposit a minimum of Rs.1,000 to open an account under this scheme to double your money after a fixed period.
What happens to KVP after maturity?
After your KVP account matures, the sum you invest and the interest that accumulates over the total tenure are provided to your bank account or Post Office savings account, as directed by you during account opening.
Is KVP only for farmers?
No. The Kisan Vikas Patra (KVP) scheme was initiated as an investment plan by keeping only farmers in mind. However, presently, any individuals qualifying the eligibility criteria of the scheme can opt for this account.
How long does it take to double my money in KVP?
To double your money under the Kisan Vikas Patra (KVP) scheme of India Post, it takes 9 years and 7 months or 115 months in total.
What is the minimum investment amount in KVP?
The minimum investment amount for the KVP scheme is Rs.1,000 and in multiples of Rs.100 thereafter.
Can I withdraw my money from KVP before maturity?
Yes, you can withdraw your money invested in the Kisan Vikas Patra account before completing the maturity tenure. However, you can prematurely withdraw the sum only under the following conditions:
- Withdrawal as ordered by the court.
- Death of a single account holder or death of all or any account holder in case of joint account.
- After the completion of 2 years and 6 months from the deposit date.
- During forfeiture by a pledgee being a Gazetted officer.
Is the interest earned on KVP taxable?
Yes. The interest you earn from the Kisan Vikas Patra scheme is taxable on an accrual basis. The tax is applicable every financial year and under the heading “Income From Other Sources”.
Who is eligible to invest in KVP?
The following individuals are eligible to invest their money in Kisan Vikas Patra:
- An individual (adult)
- Joint account holder (maximum 3 adults)
- A minor in his own name above age 10 years
- A guardian on behalf of a person with unsound mind or a minor
How do I open a KVP account?
You need to follow a few simple steps to open a KVP account, which are as follows:
- Collect the KVP application form from the nearest Post Office or download it from thePost Office website.
- Fill in the form with all the required details.
- Provide the amount of investment and submit your form along with your KYC documents to your nearest Post Office.
After successful verification of your documents and information and payment of investment sum, your KVP account will be created and you will get your KVP certificate.
What are the benefits of investing in KVP?
Some key benefits of investing your money in Post Office’s Kisan Vikas Patra are as follows:
- A fixed rate of interest is applicable to the amount you invest throughout maturity tenure.
- The amount you invest doubles up within a span of 9.7 years and helps you get high returns in future.
- Having a fixed lock-in period in the KVP scheme helps you save money for a fixed period of time.
- Being an Indian Government initiative, the Kisan Vikas Patra scheme is a highly secure option to save and increase your money for a fixed time period.
- You can use your KVP as collateral to seek a loan. KVP certificate is accepted by almost every bank and financial institution, hence making it easy for you to get a loan against your scheme.
What are the drawbacks of investing in KVP?
The Kisan Vikas Patra scheme has a few drawbacks as well. They are as follows:
- You do not get any tax benefit from this investment scheme, making it a concern for few.
- Investing all your money only in KVP restricts your investment avenues and limits your ability to diversify your portfolio.
- Interest rate for KVP generally changes yearly or half-yearly. Once you invest your money in this scheme, you will not get the benefit of a high-interest rate if it changes before your account matures.
