Is Kisan Vikas Patra guaranteed?

Yes. KVP is a sovereign backed small savings certificate scheme of the Government of India.

How is KVP interest taxed?

Interest is fully taxable as income from other sources in the year of receipt (maturity) unless you voluntarily accrue it annually.

What is the current KVP tenure?

About 115 months at present (changes when the government revises the notified rate).

Can I encash KVP early?

Premature encashment is generally allowed only after 2 years 6 months (earlier only on death/court order).

Kisan Vikas Patra Calculator (KVP) | Doubling Period & Maturity

Calculate maturity value, effective annual yield & approximate time to double your KVP investment.

Kisan Vikas Patra (KVP) – Complete Guide

Kisan Vikas Patra is a Government of India small savings certificate aimed at stable wealth multiplication. Your money grows at a notified fixed rate and is paid out only on encashment (maturity or permitted premature closure). The scheme is popular for its predictable doubling period.

Key Features & Advantages

Assured Doubling: Tenure adjusts (presently ~115 months) so the invested amount approximately doubles.
Compounding: Interest compounded annually; no periodic payout handling.
Transferable: Certificates can be transferred or pledged (loan collateral in some cases).
Premature Encashment: Allowed after 2 years 6 months (except special cases: death / court order).
Sovereign Backing: Virtually zero default risk.

Eligibility & Denominations

Resident individuals (single or joint), and minors through guardian.
Available in standard denominations (e.g. ₹1000, ₹5000, ₹10,000 etc.) enabling laddering.

How the Calculator Works

Maturity = P × (1 + r)^t
Effective Annual Yield = ((Maturity / P)^(1/t) - 1)
Approx Doubling Period = ln(2) / ln(1 + r)

Because tenure is tied to rate, if the government revises the KVP rate, the doubling tenure changes for NEW purchases. Existing certificates retain the original terms.

KVP vs NSC vs PPF

Scheme	Tax Benefit	Liquidity	Ideal For
KVP	None	Encash after 2y6m	Assured doubling goal
NSC	80C on contribution	5‑year lock-in	Tax saving + fixed return
PPF	EEE (fully tax free)	Partial after year 7	Long-term compounding

Tax Treatment

No Section 80C deduction on investment.
Interest is taxable (add to "Income from Other Sources").
TDS not generally deducted by Post Office – self declare in return.

When to Prefer KVP

You have exhausted PPF / SSY / ELSS 80C limits.
You want a simple, no-renewal product with defined doubling horizon.
You need a secure parking vehicle for medium-term goals (7–10 years).

Limitations / Risks

Inflation Risk: Real return may compress if inflation spikes.
Tax Drag: Interest fully taxable – post-tax CAGR lower than tax-free PPF.
Liquidity: Funds blocked for at least 30 months (standard premature rule).

Strategy Tips

Ladder purchases each quarter so all amounts do not mature simultaneously.
Align maturity year with planned goal (e.g. child higher education).
Compare post-tax yield with debt mutual funds (indexation) for large sums.

FAQs

Is KVP guaranteed? Yes, it carries sovereign assurance.

Can NRIs invest? Fresh investment not allowed after becoming NRI; existing certificates can be held to maturity.

Is interest paid yearly? No, it is cumulative – you receive maturity value only.

What if I encash early? Encashment before 2y6m normally not allowed (except death/court). After that, a prescribed premature value table applies (slightly less than full compounding).

Explore other small savings tools: NSC Calculator, SCSS Calculator, PPF Calculator.