Kisan vikas patra is another small scale saving scheme offered by the post offices in India. Kisan vikas patra scheme is not for tax saving but is a trusted method of saving money for future. Our detailed information on kisan vikas patra at moneysuperbazaar.com can be helpful for you to take a decision regarding investing in them or not.

Kisan vikas patra scheme is popular among the rural areas and old aged people as an instrument to save money because kisan vikas patra interest returns are quite good, even though kisan vikas patra is not meant for tax savings. Current rate of kisan vikas patra interest is 8.4% compounded annually. In a layman terms, the money earned as kisan vikas patra interest becomes equal to the original sum of money invested in 8 years and 7 months from the date of investment. Also, the kisan vikas patra interest earned is completely taxable.

Any Indian resident can invest in kisan vikas patra scheme individually or joint with another person. There is no upper limit of amount to invest in kisan vikas patra scheme but of course more is the money invested, more is the kisan vikas patra interest accrued. However, there is a minimum limit of 100 rupees to invest in kisan vikas patra. The kisan vikas patra is available for various denominations like 100 rupees, 500 rupees etc. Based on your choice of amount to invest in the kisan vikas patra scheme, you can choose your denominations.

Though the kisan vikas patra post office scheme offers doubling the invested money in more than 8 years after the maturity, but the locking period is 2.5 years after which there is a facility of premature encashment. Encashment for the kisan vikas patra post office certificates can be done at almost any post office in case the officer is satisfied by the identity proofs or the officer can also opt for verification from the post office which issued the kisan vikas patra post office certificates.

Kisan vikas patra post office to post office transfers or person to person transfers anywhere within india is also possible. Also, if you damage or loose your kisan vikas patra post office can issue a duplicate copy to you.