Post Office Small Saving Scheme: Everyone wants their money to be doubled as soon as possible, but at the same time there is a desire that there should be complete security of the deposited money. If you have a high risk appetite in your investment, then you invest in equities, like mutual funds, but if you are looking for a safe and zero risk investment, then post office Post office savings scheme can be a better option. Especially if you are thinking of making long term investment, then the Kisan Vikas Patra (KVP) scheme of the post office can be the best option.
Kisan Vikas Patra is a one time investment scheme of the Government of India, where your money is doubled in a fixed period. Kisan Vikas Patra is present in all the post offices and big banks of the country. Its maturity period is currently 124 months. The minimum investment in this is Rs 1000. There is no maximum investment limit. Government guarantee is available on post office schemes, that is, there is absolutely no risk in it.
What is Kisan Vikas Patra? (KVP)
The duration of this scheme is 124 months i.e. 10 years 4 months. If you have invested in this scheme from 1st April 2020 to 30th June 2020, then the lump sum amount deposited by you doubles in 10 years and 4 months. On Kisan Vikas Patra, you get an annual compound interest of 6.9%. Investment is made in the form of certificate in Kisan Vikas Patra (KVP). There are certificates up to Rs 1000, Rs 5000, Rs 10,000 and Rs 50,000 which can be purchased.
You can invest as much as you want
You can buy Kisan Vikas Patra Certificate with a minimum investment of Rs 1,000, there is no maximum investment limit in this scheme, that is, you can put as much money as you want in this scheme. This scheme was started in 1988, then its objective was to double the investment of farmers, but now it has been opened to all. Now it can be said that Kisan Vikas Patra has nothing to do with farmers at present.
PAN and Aadhaar have to be given
With no investment limit, there is also the risk of money laundering, so the government made PAN card mandatory in 2014 for investments above Rs 50,000. If you invest 10 lakh or more, then income proof will also have to be submitted, such as ITR, salary slip and bank statement. Apart from this, Aadhaar is also to be given as an identity card.
Can buy in three ways
1. Single Holder Type Certificate: This type of certificate is purchased for self or for a minor
2. Joint A Account Certificate: It is issued jointly to two adults. Payable to both holders, or whoever is alive
3. Joint B Account Certificate: It is issued jointly to two adults. pays to either of the two or who is alive
Features of Kisan Vikas Patra
1. Guaranteed returns are available on this scheme, it has nothing to do with market fluctuations, so it is a very safe way of investment. You get the full amount at the end of the term.
2. In this, tax exemption is not available under section 80C of Income Tax. The return on this is fully taxable. There is no tax on withdrawal after maturity.
3. You can withdraw the amount on maturity i.e. after 124 months, but its lock-in period is 30 months. Before this, you cannot withdraw money from the scheme, unless the account holder dies or there is a court order.
4. In this one can invest in denominations of 1000, 5000, 10000, 50000.
5. You can also take loan by keeping Kisan Vikas Patra as collateral or as security.
How to open account?
You can open an account at any post office by filling up the form. The form can also be downloaded online.
Full name, date of birth and address of the nominee should be mentioned on the form.
The amount of purchase amount should be clearly mentioned in the form.
The amount of KVP form can be paid through check or cash.
If paying through cheque, write the check number information on the form.
Clarify in the form KVP Single or Joint ‘A’ or Joint ‘B’ membership, on what basis is being purchased.
In case of joint purchase, write the names of both the beneficiaries.
In case the beneficiary is a minor, write his/her date of birth (DOB), name of the parents.
On submission of the form, Kisan Vikas Certificate will be given with the name of the beneficiary, date of maturity and maturity amount
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