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Small savings plan doubles money in 123 months, pays more interest than SBI FD | Rare Techy

Rare TechyOctober 29, 2022

1 2 minutes read

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Fixed income investors try to find the bank that guarantees the highest interest rates in light of the interest rates on bank fixed deposits. People should know that the State Bank of India (SBI) has recently announced an increase in interest rates by up to 80 basis points on October 22, 2022. Following the latest hike, SBI is now offering maximum interest to the public. a rate of 6.25% on deposits that mature between 2 and 3 years, and senior citizens with a maximum rate of 6.90% on deposits that mature between 5 and 10 years. Fixed income investors looking for even better interest rates should know that Kisan Vikas Patra, a post office savings scheme not only doubles investors’ money but also offers interest rates that are significantly higher than SBI FD does

Kisan Vikas Patra

A small savings scheme sponsored by the Indian government is the Kisan Vikas Patra (KVP). The investment amount doubles during the scheme period, which is 123 months (10 years and 3 months). A KVP account can be opened at any post office in the country by a single adult, a joint account (up to 3 adults), a guardian on behalf of a minor or an incapacitated person, or a minor above 10 years of age. your name A minimum deposit of Rs. 1000, in multiples of Rs. 100, without any upper limit required to operate the account.

Under the scheme, a residential customer can open an unlimited number of accounts. KVP can be transferred from one person to another person when the account holder dies and the nominated or legal heirs leave joint ownership when the account holder dies, when the court issues an order, or when the account is pledged to the designated authority.

Kisan Vikas Patra Calculator

On a number of small savings schemes, the government had hiked interest rates by as much as 30 basis points (bps) for the third quarter (October-December) of the current financial year, i.e. FY23. The government has changed the tenure and interest rates for Kisan Vikas Patra (KVP). Compared to the previous interest rate of 6.9 percent and a period of 124 months, the new KVP rate will be 7 percent and the capital period will be 123 months. As a result, the interest rate offered by KVP is higher than that of SBI as well as FDs from various prestigious institutions including ICICI Bank, HDFC Bank, Axis Bank, BoB, PNB, and more. If you invest Rs. 1 lakh in KVP today, you will get Rs. 2,00,000 when it matures on December 29, 2031.