What is the latest Kisan Vikas Patra interest rate?

Kisan Vikas Patra, popularly known as KVP, is a savings program offered by the India Post. This account can be opened by an adult in his own name or on behalf of a minor and it can also be opened jointly up to three individuals.

Kisan Vikas Patra - Interest Rates

The interest rate for the quarter ending September 30, 2022, is 6.9 % which is compounded annually. The minimum investment can be made is for Rs 1000 and in multiples of Rs 100. There is no limit on the maximum amount.

KVP tax benefits

The returns are completely taxable, and the plan is not eligible for tax deductions under Section 80C of the Income-tax. However, withdrawals made after the maturity period are not subject to TDS (Tax Deducted at Source).

Payment on maturity

An account's maturity period is nine years and five months starting on the date of deposit. On an application in Form-2 made to the accounts office, the maturity amount may be refunded to the account holder. The interest rate in effect at the time the account was opened will be used to determine the maturity duration of the deposit made under KVP.

KVP premature closure
KVP may be closed before maturity at any time if the following requirements are met: -
(i) When a single account, or any or all of the account holders in a joint account, passes away.
(ii) On forfeiture by a pledgee being a Gazette officer.
(iii) When ordered by court.
(iv) After 2 years and 6 months from the date of deposit.
(v) Transfer of account from one person to another person

Pledging of account
KVP may be pledged or transferred as security, by submitting the prescribed application form at the concerned Post Office supported by an acceptance letter from the pledgee.
(ii) Transfer/pledging can be made to the following authorities.

• The President of India/Governor of the State.
• RBI/Scheduled Bank/Co-operative Society/Co-operative Bank.
• Corporation (public/private)/Govt. Company/Local Authority.
• Housing finance company.

KVP account can be transferred from one person to another person
KVP may be transferred from one person to another person on the following conditions only.
(i) On the death of account holder to nominee/legal heirs.
(ii) On the death of account holder to joint holder(s).
(ii) On order by the court.
(iii) On pledging of account to the specified authority.