- 7.5%Interest a yearCompounded yearly
- 115 monthsMoney doubles9 years 7 months
- ₹1,000MinimumNo maximum
- 30 monthsLock-in2 years 6 months
What is Kisan Vikas Patra (KVP)?
Kisan Vikas Patra is a savings certificate of the Government of India. You buy it at a post office with a one-time amount. The money grows at a fixed rate and becomes double on the maturity date. There is no regular income in between.
It was first started in 1988 for farmers, which is where the name comes from ("kisan" means farmer). Today anyone who is eligible can buy it. It runs under the Kisan Vikas Patra Scheme, 2019.
- Step 1Invest once₹1,000 or more at a post office. There is no maximum.
- Step 2Let it grow7.5% a year, compounded yearly. Locked for the first 30 months.
- Step 3Get doubleAfter 115 months (9 years 7 months), you get twice the amount.
Example: Suresh, 40. He buys a KVP of ₹1,00,000 at 7.5%. He does not touch it. After 115 months, the post office pays him ₹2,00,000.
- He puts in
- ₹1,00,000
- After 115 months
- ₹2,00,000
- Interest earned
- ₹1,00,000
KVP interest rate 2026: 7.5%
The KVP rate is 7.5% a year for October to December 2026. The Ministry of Finance reviews it every 3 months. When the rate changes, the time to double changes too.
- Interest is compounded once a year. This means each year's interest also earns interest.
- Nothing is paid in between. You get all the interest at maturity, or when you cash the certificate early.
- The rate and the maturity period on the day you buy stay the same until maturity.
| Bought | KVP rate | Money doubles in |
|---|---|---|
| From April 2023 | 7.5% | 115 months (9 years 7 months) |
| From January 2023 | 7.2% | 120 months (10 years) |
| From October 2022 | 7% | 123 months (10 years 3 months) |
| From April 2020 | 6.9% | 124 months (10 years 4 months) |
See every past rate on the KVP interest rate page.
KVP maturity value: how much you get
KVP pays exactly double at maturity, whatever the amount. For certificates bought at 7.5%:
| You invest | You get after 115 months | Interest |
|---|---|---|
| ₹10,000 | ₹20,000 | ₹10,000 |
| ₹50,000 | ₹1,00,000 | ₹50,000 |
| ₹1,00,000 | ₹2,00,000 | ₹1,00,000 |
| ₹5,00,000 | ₹10,00,000 | ₹5,00,000 |
| ₹10,00,000 | ₹20,00,000 | ₹10,00,000 |
| ₹25,00,000 | ₹50,00,000 | ₹25,00,000 |
A bank FD with interest added every quarter would need a rate of about 7.30% to double in the same 115 months. For your own amount and tax slab, use the KVP calculator.
KVP eligibility: who can buy Kisan Vikas Patra?
- Yes: A resident Indian adult, in their own name
- Yes: Up to 3 adults together, as a joint certificate
- Yes: A parent or guardian, for a minor or a person of unsound mind
- Yes: A minor aged 10 or more, in their own name
- No: NRIs (non-resident Indians)
- No: HUFs (Hindu Undivided Families)
- No: Trusts, companies and other institutions: the 2019 scheme is only for individuals
Two kinds of joint certificate: in a Joint A certificate, the money is paid to all holders together, or to the ones still alive. In a Joint B certificate, the money can be paid to any one of the holders, or to the ones still alive.
How to buy Kisan Vikas Patra: documents and steps
- Step 1Visit a post officeAny post office that handles savings schemes.
- Step 2Fill in the formThe KVP application form (Form-1), also on the India Post website.
- Step 3Give KYC documentsAadhaar, PAN and a passport-size photo.
- Step 4Pay the amountIn cash, by cheque or by demand draft.
- Step 5Add a nomineeSo your family can claim the money easily.
- Step 6Get your certificateKeep it safe. You need it to cash the KVP.
Documents to carry:
| Who | Documents |
|---|---|
| Everyone | Filled application form, Aadhaar, PAN, passport-size photo |
| Investing more than ₹10 L | Also proof of where the money came from: a bank statement, income tax return, sale deed, will or similar document |
| For a minor | Proof of the child's date of birth, and KYC documents of the parent or guardian |
| Joint certificate | KYC documents of every holder |
KVP investment rules: minimum, maximum and PAN
- Minimum: ₹1,000. Above that, any amount in multiples of ₹100.
- Maximum: no limit. You can buy as many certificates as you like.
- One payment: each certificate takes one payment. To invest more later, buy a new certificate. It gets the rate of that time.
- PAN: needed when you invest. It is a must for more than ₹50,000.
- Proof of income: for more than ₹10,00,000, you must show where the money came from. These rules help stop money laundering.
KVP lock-in period and premature encashment rules
"Premature encashment" means cashing the certificate before maturity. KVP has a lock-in of 30 months, or 2 years 6 months. For a ₹1,00,000 certificate:
- Before 30 months: early closure is allowed only in 3 cases: the holder (or all joint holders) dies, a pledgee who is a gazetted officer takes the certificate, or a court orders it. You then get your money back with simple interest at the Post Office Savings Account rate (4% now) for the complete months held.
- After 30 months: you can cash it for any reason. You get a fixed amount from India Post's premature encashment table. The amount goes up for every 6 months you hold it. Cashing early pays less than holding to maturity.
- To cash a KVP early, fill in the closure form (Form-3) and give it with your certificate at the post office.
KVP maturity: what happens at the end
On the maturity date, the certificate is worth double. Take the certificate to the post office to get the money paid into your savings account or by cheque. The KVP rules do not give an option to extend a certificate. To keep investing, buy a new KVP at the rate of that time.
KVP transfer, pledge, nominee and death of the holder
- Step 1Moving cityTransfer the certificate to another post office. The rate and maturity stay the same.
- Step 2Transfer to a personAllowed only in some cases: to the nominee or heirs after death, to the surviving joint holder, by court order, or to a pledgee.
- Step 3Pledge for a loanGive KVP as security to a bank or other approved lender, with Form-4.
- Step 4NomineeAdd a nominee when you buy, or later at the post office.
- Who can take a pledge: the President or a Governor, the Reserve Bank of India, scheduled banks, co-operative societies and banks, government companies and corporations, local authorities, and housing finance companies approved by the National Housing Bank.
- If the holder dies: the money goes to the nominee, or to the legal heirs if there is no nominee. If there are not more than 3 nominees or heirs, they can keep the certificate until maturity, or close it early.
- Joint certificate: if one holder dies, the ones still alive become the owners.
KVP tax rules: is Kisan Vikas Patra tax free?
- No deductionOn the amount investedNot under Section 123 (earlier 80C)
- TaxableInterestAt your slab rate
- Yearly or at the endWhen to show interestPick one method and keep to it
- No TDSOn KVP interestYou pay the tax yourself
- Not tax free: KVP interest is added to your income under "income from other sources" and taxed at your slab rate.
- No deduction: unlike NSC or PPF, the money you put in KVP does not get a deduction under Section 123 (earlier 80C), in either tax regime.
- When to pay tax: you can show the interest each year as it grows, or all at once in the year you cash the certificate. Showing it yearly spreads the tax over many years.
- TDS: the post office does not cut TDS on KVP, so you do not need to give Form 121 (which replaced Forms 15G and 15H from April 2026). Pay any tax due when you file your return.
Kisan Vikas Patra: strengths and limits
- Yes: Backed by the Government of India
- Yes: Fixed return: the money doubles in 115 months
- Yes: No upper limit on the amount
- Yes: Can be cashed after 30 months if needed
- Yes: Can be pledged for a loan
- No: Interest is taxable
- No: No tax deduction on the amount invested
- No: Locked for the first 30 months
- No: Long term of almost 10 years
- No: No regular income
KVP vs NSC vs bank FD
| KVP | NSC | Bank FD | |
|---|---|---|---|
| Interest rate | 7.5%, compounded yearly | 7.7%, compounded yearly | Set by each bank |
| Term | 115 months (9 years 7 months) | 5 years | 7 days to 10 years |
| ₹1 L becomes | ₹2,00,000 at maturity | ₹1,44,903 after 5 years | Depends on the rate and term |
| Early exit | After 30 months | Only on death, pledge forfeiture or court order | Usually any time, with a small penalty |
| Tax deduction | No | Old regime, Section 123 (earlier 80C) | Only the 5-year tax-saver FD |
| TDS | No | No | Yes, if interest is over ₹50,000 a year |
| Safety | Government of India | Government of India | Bank, with DICGC deposit insurance |
Compare the numbers on the NSC calculator and the FD calculator, or read the National Savings Certificate page.
Frequently asked questions
What is Kisan Vikas Patra?
Kisan Vikas Patra (KVP) is a savings certificate of the Government of India, sold at post offices. You invest a lump sum once, and it doubles at maturity. At the current rate of 7.5%, it doubles in 115 months (9 years 7 months).
What is the KVP interest rate in 2026?
7.5% a year, compounded yearly, for October to December 2026. The rate and the maturity period on the day you buy stay fixed until maturity, even if the rate changes later.
In how many months does KVP double the money?
115 months, or 9 years 7 months, for certificates bought from April 2023 at 7.5%. A ₹1,00,000 KVP becomes ₹2,00,000.
Who can buy Kisan Vikas Patra?
Any resident Indian adult, alone or jointly with up to 3 adults. A parent or guardian can buy it for a minor or a person of unsound mind, and a minor aged 10 or more can buy it in their own name. NRIs and HUFs cannot buy KVP.
What is the minimum and maximum amount for KVP?
The minimum is ₹1,000, and more in multiples of ₹100. There is no maximum. You can buy any number of certificates.
Is PAN card needed for KVP?
Yes. Aadhaar and PAN are needed to open small savings accounts, and PAN is a must if you invest more than ₹50,000. For more than ₹10 L, you must also show proof of where the money came from, like a bank statement or an income tax return.
Can I withdraw KVP before maturity?
Yes, any time after 30 months (2 years 6 months) from the date of purchase, at the encashment value fixed by India Post. Before that, it can be closed only if the holder dies, a gazetted officer who holds it as a pledge takes it, or a court orders it.
What do I get if KVP is closed before 30 months?
In the allowed cases (death, pledge forfeiture or court order), you get the amount you put in plus simple interest at the Post Office Savings Account rate (4% now) for the complete months it was held.
Is KVP interest taxable?
Yes. The interest is added to your income and taxed at your slab rate. You can show it every year as it grows, or all at once in the year you cash the certificate. The post office does not cut TDS on KVP.
Does KVP give a tax deduction?
No. The money you put in KVP does not get a deduction under Section 123 (earlier 80C). NSC, PPF and the 5-year tax-saver FD do, in the old tax regime.
Can I take a loan against KVP?
Yes. You can pledge the certificate as security with a bank or other approved lender. The lender sets the loan amount and the interest rate.
Which is better: KVP or FD?
KVP doubles your money in 115 months. A bank FD compounded every quarter needs about 7.30% to do the same in that time. KVP is backed by the government; an FD has more choice of term and can be closed at any time. Both are taxable.