You can invest in post office plans if you want long-term earnings that are assured. Investors receive higher interest rates on several Post Office programs than on many banks’ fixed deposits (FDs).
Some of the programs that offer yields greater than 7% include the Senior Citizen Savings Scheme (SCSS), Post Office Public Provident Fund (PPF), and Sukanya Samriddhi Yojana. At the same time, you can benefit from 6.9 percent compound interest annually in Kisan Vikas Patra (KVP), another well-known program. Here, we’ll explain what makes the Kisan Vikas Patra (KVP) scheme unique.
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An intriguing scheme is KVP. At the current interest rate, this strategy can double your deposit amount in 124 months, or 10 years and 4 months. A KVP contribution of Rs. 1 lakh made now will grow to Rs. 2 lakh in the following 124 months.
KVP deposits currently offer an interest rate of 6.9%, which is greater than the interest rate on many bank fixed deposits. Here are some of the main characteristics of this little savings program:
- Deposit: Deposits can be made in multiples of Rs. 100 beginning with a minimum of Rs. 1000. Under this plan, there is no upper limit on investment. Any number of KVP accounts may be opened.
- Maturity: The money deposited under the KVP matures during the time frame set forth from time to time by the Ministry of Finance. Right now, if you make a deposit, it won’t mature till 124 months. Premature withdrawal is permitted, but, under unique conditions.
- Transfer: In the event of the account holder’s passing, the KVP account for the nominee or legal heir may be transferred from one individual to another, to the joint holder upon the account holder’s passing; On the instructions of the Court; and Upon mortgage of the account to the Specified Authority.
Should I make a small savings scheme investment?
Investors who cannot afford to lose their hard-earned money can take advantage of assured returns offered by small savings programs like KVP, which the post office offers. In addition, compared to bank term deposits, many post office schemes, such as PPF, SSY, and SCSS, offer better interest rates and tax advantages. However, if you don’t mind taking chances, you can invest in market-oriented plans like stocks and mutual funds. In comparison to the post office system, you can obtain better returns and double your money faster here. However, you should conduct extensive research and speak with a qualified financial counselor before investing in mutual funds or stocks.
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