KVP: the simplest guaranteed-doubling investment
Kisan Vikas Patra is perhaps the most straightforward Post Office scheme: invest today, get double the amount in about 9.5 years. No market risk, government guaranteed, no annual deposit requirement.
KVP vs. other doubling investments
At 7.5% CAGR, KVP doubles in 115 months (Rule of 72: 72 ÷ 7.5 ≈ 9.6 years). Compare:
| Instrument | Rate | Doubling period | 80C? | Tax on returns |
|---|---|---|---|---|
| KVP | 7.5% | ~9.6 years | No | Taxable (slab) |
| NSC | 7.7% | ~9.4 years | Yes | Taxable (slab) |
| PPF | 7.1% | ~10.1 years | Yes | Tax-free |
| Sukanya Samriddhi | 8.2% | ~8.8 years | Yes | Tax-free |
KVP doesn't offer 80C deduction — its advantage is no upper investment limit and simple, guaranteed doubling without annual deposit requirements.
KVP for high-value savings
For investors with surplus beyond ₹1.5 lakh (the 80C limit), KVP is one of the few government-backed instruments with no upper limit. PPF, NSC, and SSY are all capped at ₹1.5 lakh/year — KVP has no such cap, making it useful for parking larger amounts safely.
Liquidity: the 2.5-year lock-in
Unlike NSC (no premature exit) or PPF (very restrictive), KVP allows premature encashment after 30 months. This makes it more flexible for medium-term parking.
How to buy KVP
Available at all post offices and authorised banks. You can buy KVP certificates in single or joint holding (up to 3 joint holders). KVP can be transferred between post offices and also used as collateral for loans.