Kisan Vikas Patra, generally known as KVP is one of the best short savings plans proposed by the Post Office. At present, KVPs are suggesting an interest rate of 6.9% compounded annually. As per the modern interest rate, a KVP can double your investment in 124 months or 10 years and four months. A KVP account can be opened with the least amount of ₹1,000 and in multiples of ₹100 following. There is no maximum limit. A Kisan Vikas Patra can be opened at any post office. Here are more further details about Kisan Vikas Patra.
A single Person, a joint account with up to three Persons can open a KVP account. A guardian on behalf of a minor or on behalf of a person of ill-founded mind can also open an account. A minor over 10 years can get his Kisan Vikas Patra account in his or her own name.
A suitable person can open any number of accounts.
Premature closure of the account
KVP may be precipitately closed any time before maturity if the following conditions are true:
(i) On the demise of a single account, or any or all the account holders in a joint account
(ii) On forfeiture by a pledgee being a Gazette officer
(iii) When order by the court
(iv) After 24 months and 6 months from the date of deposit
KVP is transferable to another person
KVP may be assigned from one person to another person in the following conditions:
(i) On the demise of the account holder to nominee/legal heirs.
(ii) On the death of account holder to the joint holder(s).
(ii) On order by the court.
(iii) On pledging of account to the particularized authority.
KVP allows pledging
KVP may be promised or transferred as security, by submitting a prescribed application form at the concerned Post Office supported with an agreement letter from the pledgee.
(ii) Transfer/pledging can be given 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