The interest rate on KVP has been lowered to 7.6% for the September quarter, compared with 7.7% in the April-June period. The interest rates on the government's small saving instruments are revised every quarter.
In view of falling interest rates, the government has increased the time period by 1 month for doubling the money invested in Kisan Vikas Patra (KVP) to 9 years and 5 months. The funds parked in KVP with effect from 1st July, 2019, will double in "9 years and 5 months" or 113 months as against "9 years and 4 months" or 112 months earlier, the finance ministry said while amending the Kisan Vikas Patra Rules, 2014.
Individuals can invest their money in saving instrument KVP in multiples of Rs1,000 and there is no upper ceiling for investments. KVPs are issued in denominations of Rs1,000, Rs5,000, Rs10,000 and Rs50,000. KVPs are sold at post offices and the certificate can be encashed after two-and-a-half years from the date of issue.
In case of premature withdrawal after two-and-a-half years, a person will get Rs1,173 for every Rs1,000 invested. After 3 years, the amount will go up to Rs1,211 and after three-and-a-half years, the amount would be Rs1,251.
The withdrawal amount would gradually go up with time and double after 9 years and 5 months.