Kisan Vikas Patra (KVP) 2026
Invest once and double your money in 115 months at a government-guaranteed rate.
Rates for July–September 2026 (Q2 FY 2026-27) · Updated 27 September 2026What is Kisan Vikas Patra (KVP)?
Kisan Vikas Patra is a savings certificate that doubles the invested amount over a fixed period. Originally launched for farmers in 1988, it is now open to all resident individuals. At the current 7.5% rate the maturity period is 115 months. KVP suits investors who want a guaranteed doubling of a lump sum and do not need a tax deduction.
KVP at a glance
| Particular | Details |
|---|---|
| Current interest rate | 7.5% p.a. compounded (Jul–Sep 2026) |
| Maturity period | 115 months — the amount doubles |
| Investment | Min ₹1,000, multiples of ₹100, no maximum |
| Lock-in | 2 years 6 months |
| Holding | Single, joint (up to 3 adults), minor through guardian |
| Transfer | Between persons (specified cases) and between post offices |
| Pledge | Can be pledged as collateral |
| PAN | Mandatory above ₹50,000; income proof above ₹10 lakh |
Government-notified terms for July–September 2026 (Q2 FY 2026-27). Verify the latest notification before investing.
Features & benefits of KVP
Maturity amount is fixed at twice the investment at purchase.
Encash after 2.5 years at predetermined values.
Invest any amount for guaranteed returns.
Accepted for secured loans.
Eligibility — who can invest?
- Resident Indian adults (single / joint up to 3).
- Guardian on behalf of a minor or person of unsound mind.
- Minor above 10 years in own name.
- NRIs, HUFs and trusts not eligible.
How does KVP work?
- Buy a certificate at the post office.
- Interest compounds annually and is paid only at maturity (115 months) or at encashment.
- On maturity, you receive exactly double the invested amount.
Tax benefits of KVP
| Stage | Tax treatment |
|---|---|
| Investment | No Section 80C / 123 deduction |
| Interest | Taxable — can be declared yearly on accrual or at maturity |
| TDS | None |
| Maturity | Principal returned tax-free; interest portion taxable |
Section 80C of the Income-tax Act, 1961 is Section 123 of the Income-tax Act, 2025 from tax year 2026-27. Deductions apply only in the old tax regime.
Withdrawal, premature closure & maturity rules
| Situation | Rule |
|---|---|
| Before 1 year | Only on death / court order — no interest |
| 1 year to 2.5 years | Only on death / court order; reduced interest |
| After 2.5 years | Premature encashment permitted at predetermined values |
| At maturity | Double the investment |
At maturity
| Option | What happens |
|---|---|
| On 115 months | ₹1 lakh → ₹2 lakh |
| Uncollected after maturity | Post-maturity interest at POSA rate for limited period — collect promptly |
Loan against KVP
| Parameter | Rule |
|---|---|
| Loan against KVP | Can be pledged / transferred as security to banks and financial institutions |
KVP returns — worked examples
| Investment | Maturity (115 months) | Effective annual growth |
|---|---|---|
| ₹10,000 | ₹20,000 | ≈7.5% compounded |
| ₹1,00,000 | ₹2,00,000 | ≈7.5% compounded |
| ₹5,00,000 | ₹10,00,000 | ≈7.5% compounded |
Maturity period and value are fixed at the time of purchase.
KVP calculator
How to open / invest in KVP
- Visit a post office with KYC.
- Fill the KVP application form (Form A).
- Pay by cash, cheque or DD.
- Receive certificate / passbook.
Documents required
- Aadhaar
- PAN (above ₹50,000)
- Income proof — salary slip / ITR / bank statement (above ₹10 lakh)
- Photographs
Important forms
| Form | Purpose |
|---|---|
| Form A | Purchase |
| Form A1 | Purchase through agent |
| Form B | Transfer to another person |
| Form C | Encashment |
Advantages & limitations
- Guaranteed doubling
- No investment ceiling
- Early exit after 30 months
- Pledgeable
- No tax deduction
- Interest taxable
- Long 115-month tenure
- No periodic income
Mistakes to avoid
- Confusing KVP with a tax-saving product
- Not declaring accrued interest
- Choosing KVP over NSC when a deduction is needed
KVP vs other saving schemes
| Scheme | Rate | Tenure | Minimum | Tax |
|---|---|---|---|---|
| KVP | 7.5% p.a. (compounded) | 115 months (9 years 7 months) | ₹1,000 | Taxable — no deduction |
| NSC | 7.7% p.a. | 5 years | ₹1,000 | EET (reinvested interest deductible) |
| PO TD | 6.9% – 7.5% p.a. | 1, 2, 3 or 5 years | ₹1,000 | 5-year TD qualifies for deduction; interest taxable |
| POMIS | 7.4% p.a. | 5 years | ₹1,000 | Taxable — no deduction |
| PPF | 7.1% p.a. | 15 years + 5-year extension blocks | ₹500 per financial year | EEE |
Frequently asked questions
How long does KVP take to double money?
115 months at the current 7.5% rate.
Is KVP tax-free?
No. Interest is taxable and there is no deduction.
Can KVP be withdrawn before maturity?
Yes, after 2 years 6 months.
Can I buy KVP online?
Yes, through India Post internet banking for post-office savings account holders.
Information is for education and comparison. Interest rates are notified by the Government every quarter and scheme rules can change — confirm with India Post, your bank, EPFO or PFRDA before investing. FinancePortal is not a financial or tax adviser.