What is the latest Kisan Vikas Patra (KVP) interest rate for January- March 2025?

Kisan Vikas Patra (KVP) is a government-backed small savings scheme offered by the Indian Post Office, designed to encourage long-term investments and financial security among individuals. KVP is a fixed-income investment scheme offering assured returns on maturity, irrespective of market fluctuations.

The government revises small savings scheme interest rates every quarter. However, for this quarter, the government has not revised any interest rate on small savings schemes for January- March 2025.

Also read: How to open, close KVP, NSC accounts online via India Post internet banking facility


"The rate of interest on various Small Savings Schemes for the fourth quarter of FY 2024-25 starting from 1st January, 2025 and ending on 31st March, 2025 shall remain unchanged from those notified for the third quarter (1st October, 2024 to 31st December, 2024) of FY 2024-25," the Department of Economic Affairs, Finance Ministry said in a press release dated December 31, 2024.

What is the latest KVP interest rate for January- March 2025?

Deposits made into KVP accounts currently earn an interest rate of 7.5% annually compounded.
To double your money under this savings plan, at the current interest rate, you will need in 115 months (9 years & 7 months).

Tax benefits of KVP
Taxable Returns: The interest earned is taxable under the "Income from Other Sources" category.

No Deductions: Investments in KVP are not eligible for tax benefits under Section 80C of the Income Tax Act.

TDS: Not applicable, but individuals must declare the income.

KVP: Minimum investment amount, documents required
The scheme is available to Indian residents aged 18 and above, with a minimum investment of Rs1,000 and no upper limit. KVP certificates can be held individually or jointly and require Aadhaar and PAN for KYC verification. While the returns are taxable and not eligible for deductions under Section 80C, the scheme offers a secure investment avenue with a mandatory lock-in period of 2.5 years, after which premature withdrawal is allowed under specific circumstances like the holder's death or a court order.

How to open KVP online in through Post Office internet banking

Step 1: Login into Department of Post (DOP) internet banking .
Step 2: Under ‘General Services' >'Service Requests' > 'New Requests' .
Step 3: Click on NSC Account - Open a NSC account and KVP Account to open a KVP account.
Step 4: Enter Amount for which NSC to be opened minimum is Rs 1000 and in multiple of < 100) .
Step 5: Select the Debit Account linked Post Office Saving Account
Step 6: Click on 'Click Here' to read terms and conditions and accept terms and conditions .
Step 7: Submit online
Step 8: Enter transaction password and submit.
Log in again to view the details of NSC opened under ‘Accounts'.