Kisan Vikas Patra (KVP) Calculator
What is Kisan Vikas Patra?
Kisan Vikas Patra was introduced in 1988 by the India Post as a small savings certificate scheme. The main objective of this scheme is to promote long-term financial planning among the public. At present, it offers an investment tenure of 9 years and 5 months, allowing individuals to start with a minimum investment of ₹1,000, with no maximum limit on the amount that can be invested.
Key Features of KVP:
- Guaranteed returns.
- Fixed interest rate (varies, currently ~7.5% p.a. — check latest).
- Money doubles in a pre-defined period (usually ~115 months).
- Minimum investment: ₹1,000; No maximum limit.
- Compounded annually.
How to Use the KVP Calculator
- Enter the Investment Amount (₹)
- Enter the Interest Rate (%)
- Enter or select Duration (Years/Months) or leave it to auto-calculate
- The calculator displays the Maturity Amount, Time to Maturity
KVP Formula
The maturity amount is calculated using the compound interest formula:
Where:
- A = Maturity Amount
- P = Principal Investment
- r = Annual Interest Rate
- t = Time in Years
Example:
Mahesh had invested ₹50,000 in Kisan Vikas Patra so after 9.7 years his investment is doubled now to ₹100000
KVP Eligibility Criteria
1. Individuals
KVP can be purchased by any individual who is an adult (18 years and above) and has a valid identity proof.
2. Joint Accounts
KVP can also be opened in joint names, where the individuals can hold the certificates together. However, only one person can be designated as the nominee.
3. Minors
Parents or guardians can open KVP accounts in the name of minors, helping them to cultivate a habit of saving from an early age.
FAQs
Is the interest on KVP fixed?
Yes, but it may change periodically based on government announcements. Always check the latest rate before investing.
What is a Kisan Vikas Patra (KVP) Calculator?
A KVP calculator lets you forecast your returns and compare scenarios for the Kisan Vikas Patra investment scheme.
Can I encash KVP early?
Yes, but only after 2.5 years (30 months) from the date of issue, except in case of the holder’s death or court order.
Is KVP available online?
No, KVP certificates must be purchased physically through India Post offices or select banks.
Can the KVP Calculator estimate interest for partial withdrawals?
No, a standard KVP calculator typically cannot estimate interest for partial withdrawals. This is because KVPs are designed for lump-sum investments with guaranteed returns upon maturity. The interest calculations are pre-defined based on the original investment amount and maturity period.
Is KVP Kisan Vikas Patra Calculator free to use?
Yes, it is free to use and you do not even have to login to use the tool.