The KVP scheme, Kisan Vikas Patra, is a post office savings certificate that doubles whatever you invest in a fixed number of months, now 115 months at 7.5% a year. Put in ₹50,000 and you receive ₹1,00,000 on maturity; no monthly payments, no market risk.
Despite the word kisan in the name, anyone can buy it. This hub covers how it works, who can hold it, how to exit early, tax, and links to the KVP calculator, rate page and rules. It is an independent guide, separate from India Post.
At a glance
Rate
7.5% a year, compounded yearlyDoubles in
115 months (9 years 7 months)Minimum
₹1,000, multiples of ₹100Maximum
No limitEarly cash out
After 2 years 6 monthsTax
No deduction; interest taxable
What is KVP and how the KVP scheme works
KVP is a certificate. You pay a sum once; the government promises to pay double that sum after the stated number of months. The number of months depends on the rate in the quarter you buy: at 7.5%, it is 115. Interest compounds yearly inside the certificate, and nothing is paid until maturity or an early encashment.
| You invest | You get after 115 months |
|---|---|
| ₹1,000 | ₹2,000 |
| ₹25,000 | ₹50,000 |
| ₹2 lakh | ₹4 lakh |
| ₹10 lakh | ₹20 lakh |
Try any figure on the KVP calculator.
KVP post office scheme: the numbers at a glance
Many savers want the KVP post office scheme reduced to a few numbers they can remember. Here they are: the minimum is ₹1,000, the steps are ₹100, there is no ceiling, the rate is 7.5%, the wait is 115 months, the earliest exit is month 30, and the result is double. Those seven facts are the whole KVP scheme details card.
The certificate is issued in electronic form and appears in your post office account. If your savings are already with the post office, the maturity amount lands in that account on its own; everyone else collects a cheque from the counter.
KVP scheme details: who can buy, and the paperwork
- Resident adults may buy alone or with up to two co holders.
- Guardians buy on behalf of minors or people of unsound mind, and children aged ten and over can hold one personally.
- Not open to NRIs or HUFs.
- PAN is required for ₹50,000 and above. For ₹10 lakh and above, proof of income such as salary slips, a bank statement or a tax return is also asked for, under anti money laundering rules.
Most buyers use the counter and the common form; existing post office net banking users can also purchase online.
Cashing a KVP early
Unlike NSC, a KVP can be encashed before maturity after 2 years 6 months from purchase. You receive a value from a table published for each issue, which grows every six months. Before 30 months, early encashment is allowed only on the death of a holder, by court order, or by a pledgee. The details are on KVP premature closure and rules.
Using KVP for a child
A parent invests ₹1 lakh in KVP in a child's name when the child turns eight. At 115 months, close to the child's eighteenth birthday, the certificate pays ₹2 lakh. If needed earlier for school costs, it can be encashed from 30 months onward at the table value.
Because KVP is transferable, a certificate first bought in a parent's name can also be moved to the child later, subject to post office approval. Compare other choices for children on post office schemes for children.
Tax on Kisan Vikas Patra
Neither tax regime lets you deduct the KVP purchase. The interest is taxable: you can report it each year as it accrues, or all at once at maturity. Spreading it yearly keeps you in a lower slab for most savers. No TDS is cut on KVP at maturity.
What is KVP in post office, in one paragraph
Kisan Vikas Patra (KVP) is a Kisan Vikas Patra post office scheme certificate: you pay a lump sum, the government doubles it over 115 months. The KVP minimum amount is ₹1,000. People asking for the KVP meaning, "KVP kya hai" or the KVP ROI (rate of interest, now 7.5%) are all asking about this same certificate.
Who the KVP scheme suits
| Good fit | Poor fit |
|---|---|
| Parents parking a sum for a child's need about ten years out | Anyone needing a monthly or yearly income |
| Savers who value the simple doubling promise | Old regime taxpayers who still need a deduction; see NSC |
| New regime filers wanting a safe lump sum product | Money that may be needed within 30 months |
For a direct comparison, read NSC vs KVP, and for other ways to double money see the post office double money guide.
Why it is called Kisan Vikas Patra
KVP was first launched decades ago to draw savings from farmers into a safe instrument, hence kisan (farmer) and vikas (growth). It was withdrawn for a few years and relaunched for all savers. Today the name is historical; the rules are the same for every holder. People sometimes ask about sarkari KVP or what KVP means; it is simply this government certificate.
How to open KVP in post office
- Fill the common account opening form and tick Kisan Vikas Patra.
- Attach Aadhaar, PAN (for ₹50,000 and above) and income proof if investing ₹10 lakh or more.
- Pay the amount; cheques are needed for large sums.
- Name a nominee and collect the e receipt or passbook.
The current rate and doubling period are on the KVP interest rate page.
Frequently asked questions
What is the KVP scheme?
A post office certificate that doubles your money in a fixed period, now 115 months at 7.5%.
Lowest KVP purchase?
₹1,000, then multiples of ₹100. There is no maximum.
Can I withdraw KVP early?
Yes, after 2 years 6 months, at the value in the encashment table.
Is KVP only for farmers?
No. Any resident adult can buy it.
Does KVP give a tax benefit?
No. There is no deduction, and the interest is taxable.
Is KVP safe?
Yes. Yes. The Government of India stands behind it, and markets cannot touch it.
Can KVP be bought online?
Yes, through India Post net banking linked to your post office savings account. Otherwise buy it at the counter.
What happens to KVP if the holder dies?
The nominee or legal heir can encash it at the table value, even before 30 months, or have it transferred to their name and hold it to maturity.