Definition
Kisan Vikas Patra (KVP)
KVP is a post office savings certificate that doubles your invested money over a fixed period at a government-set interest rate.
Kisan Vikas Patra (KVP) is a government-backed post office scheme in which your lump-sum investment doubles over a predetermined period, with the tenure adjusting as the government revises the interest rate each quarter. It offers guaranteed, sovereign-safe returns.
Unlike NSC, KVP does not offer a Section 80C tax deduction, and the interest is taxable. It can be encashed after a lock-in period and is transferable, which adds some flexibility.
KVP suits conservative savers focused purely on safe capital growth who do not need a tax deduction, and is often compared with NSC and fixed deposits.
Related terms
- National Savings Certificate (NSC)NSC is a fixed-income government savings bond sold at post offices, offering guaranteed returns and a Section 80C tax benefit.
- Post Office Monthly Income Scheme (POMIS)POMIS is a post office scheme that pays a fixed monthly interest income on a lump-sum deposit, with capital protection.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.