The current interest rate on Kisan Vikas Patra (KVP) account deposits is 7.2% compounded annually. The revised rate was announced on December 30. This rate would apply to KVP deposits made in the first quarter of the New Year 2023. Amid rising inflation and repo rate hikes by the Reserve Bank of India, KVP depositors were expecting an upward revision in the interest rate. More so because even several banks are now offering higher interests on Fixed Deposit schemes than KVP. In past, KVP depositors have enjoyed a higher interest than bank FDs.
Kisan Vikas Patra (KVP) Interest Rate 2023:
The KVP interest rate applicable in the first quarter of 2023 (January-March) was announced on December 30, 2022. The new interest rate is 7.2%. The Union Government revises the Kisan Vikas Patra (KVP) interest rate on a quarterly basis. The next revision of the KVP interest rate will take place by the end of March 2023. At 7.2% interest, the amount invested in the KVP account will double in 10 years.
About Kisan Vikas Patra (KVP):
- KVP is a saving certificate scheme which was first launched in 1988 by India Post wherein invested money doubled during the maturity period.
- The amount (Principal) invested in KVP would get doubled in 120 months. The rate of interest is 7.2%.
- It was discontinued in 2011 and later reintroduced in 2014. It is considered a part of the National Small Savings Fund.
- KVP certificates are available in the denominations of Rs 1000, Rs 5000, Rs 10000 and Rs 50000.
- The minimum amount that can be invested is Rs 1000. However, there is no upper limit on the purchase of KVPs.