The KVP interest rate is 7.5% a year, compounded yearly, for Kisan Vikas Patra certificates bought in the October to December quarter. At that rate the KVP maturity period is 115 months, or nine years and seven months, by which time the money has doubled.
For KVP, rate and maturity period are two sides of one number: the higher the rate, the shorter the wait. This page explains that link, the rate's history and what it means after tax.
At a glance
Rate
7.5% a yearMaturity period
115 monthsDoubling
Exactly 2× at maturityRate locked
Yes, at purchaseSame everywhere
Yes, national rate
KVP interest rate and maturity period together
KVP promises to double your money, so when the government sets a new rate, it also sets a new number of months to reach double. The rule of thumb is 72 divided by the rate gives the years: 72 ÷ 7.5 = 9.6 years, close to the official 115 months.
| KVP rate | Months to double |
|---|---|
| 6.9% | 124 |
| 7.0% | 123 |
| 7.2% | 120 |
| 7.5% | 115 |
That table is also the KVP rate history over recent years, in the order the rates applied.
KVP double in how many years
At the current rate, nine years and seven months. A certificate bought when the rate was 6.9% takes ten years and four months, because each certificate keeps the doubling period of its purchase quarter. Check your receipt for the exact maturity date.
How the government decides the KVP rate
KVP's rate is reviewed every quarter with the other small savings schemes and is linked to long term government bond yields plus a small spread. When the rate changes, the doubling period changes with it, and the post office publishes a new maturity table. In practice, KVP's rate has usually been set level with the 5 year time deposit, which is the case today at 7.5%.
Because each certificate keeps its own rate, you may hold several KVPs with different maturity periods if you bought them in different quarters. Your passbook lists each one separately.
KVP interest rate after 2.5 years
If you encash between 30 months and maturity, you do not get a fresh rate; you get the value from the encashment table for your certificate's issue. That value reflects growth at slightly below the full KVP rate for the time held. At 30 months, ₹1 lakh is worth roughly ₹1.19 lakh at most. The clerk can quote your certificate's exact value; the KVP rules page covers the conditions.
Post office KVP interest rate vs other schemes
| Scheme | Rate | Term |
|---|---|---|
| KVP | 7.5% | 115 months |
| NSC | 7.7% | 5 years |
| 5 year TD | 7.5% | 5 years |
| PPF | 7.1% | 15 years |
KVP's rate matches the 5 year FD and is a little below NSC. Its strengths are the long compounding run and the option to transfer. All current rates are on the interest rate hub.
KVP interest after tax
The interest is taxable. On ₹1 lakh doubling to ₹2 lakh, the ₹1 lakh gain is taxed either year by year as it accrues or entirely at maturity. At a 20% slab, roughly ₹80,000 of the gain stays with you. Buying KVP gives no deduction.
Answers people look for
- KVP rate of interest: 7.5% a year.
- Post office Kisan Vikas Patra interest rate: the same, at every branch.
- KVP time period: 115 months for new certificates.
- KVP interest rate last 10 years: see the table above, from 6.9% up to 7.5%.
To run your own numbers, open the KVP calculator, and for the overall scheme the KVP scheme guide.
Frequently asked questions
What is the KVP interest rate now?
7.5% yearly on purchases in October to December.
What is the KVP maturity period now?
115 months, which is nine years and seven months.
Will my KVP doubling period change if rates change?
No. It is fixed when you buy the certificate.
Is KVP interest paid yearly?
No. It compounds inside the certificate and is paid at maturity or encashment.
Is the KVP interest rate the same in all post offices?
Yes. It is a national rate.
Is there a senior citizen KVP rate?
No. KVP pays every holder the same rate and doubling period.
Why did the KVP maturity period get shorter?
Because the rate rose. A higher rate reaches double sooner, so the period fell from 124 months to 115 as the rate climbed to 7.5%.