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Kisan Vikas Patra (KVP)

Government of India — small savings scheme · Government & Post Office Schemes

A certificate that doubles your money over 115 months at the notified rate, with no tax deduction attached.

7.50% Interest rate · Notified quarterly; current for Oct–Dec 2026

As of 1 Oct 2026. Rates change — check the source before acting.

Source: National Savings Institute · confirmed via Outlook Money, 1 October 2026

Source India Post — saving schemes

www.indiapost.gov.in/banking-services/savings

The official page listing every post office savings scheme, with the current rates and rules.

How it works

Kisan Vikas Patra (KVP) is a government schemes product from Government of India — small savings scheme, in the guaranteed category: fixed by contract. A certificate that doubles your money over 115 months at the notified rate, with no tax deduction attached.

Because the return type is guaranteed, the questions that matter most are: Is the rate fixed for the whole tenure, or revised during it? Who is actually promising to pay, and what happens if they don't?

  • A simple, no-frills commitment with a known maturity value
  • Money that can be pledged rather than sold

Key facts

Provider
Government of India — small savings scheme
Source
India Post — saving schemes ↗ https://www.indiapost.gov.in/banking-services/savings
Rate
7.50% Interest rate, as of 1 Oct 2026
Category
Government & Post Office Schemes
Minimum investment
₹1,000 and in multiples of ₹100; no upper limit
Tenure
115 months
Payout
At maturity
Eligibility
Resident individuals, singly or jointly, and some trusts and institutions. A guardian can invest for a minor.
Getting your money back
Encashable after a minimum period, subject to the scheme's rules. The certificate can be transferred or pledged.
Protection
A sovereign liability of the Government of India.
Tax
No deduction is available for the investment. The interest is taxable as income, and tax may be deducted at source above the threshold.

What can go wrong

  • There is no tax benefit, unlike NSC or PPF, so the post-tax return is weaker.
  • Almost ten years is a long time to have money locked away.
  • The rate is fixed at purchase; if rates rise, you are left on the older one.

Before you decide anything

  • The exact maturity value for the amount you deposit
  • The rules and deduction for encashing before maturity

These are questions to take to the provider, not a checklist that makes a product suitable. Whether something fits your situation is a decision only you — or an adviser you choose — can make.

Official sources

These link to the regulator or provider where the rules for this type of product are set out. They are the pages worth checking before you act, because they are the ones that get updated.

Other products in this category

The same rules and the same kind of trade-offs, described the same way.