Kisan Vikas Patra (KVP) 2026: Rate, Doubling Period & Tax
Last verified: June 2026. Investments carry risk and rates/rules change — small-savings rates are reviewed quarterly. Verify current details before investing. General information, not investment advice.
Kisan Vikas Patra (KVP) is a government-backed savings certificate that roughly doubles your money over a fixed period — simple, safe, and available at post offices and many banks. Here is how it works in 2026.
Key features
| Feature | Detail |
|---|---|
| Interest rate | 7.5% p.a. (compounded annually) |
| Maturity | 115 months (9 years 7 months) — money roughly doubles |
| Minimum | ₹1,000 (in multiples of ₹100); no maximum limit |
| Lock-in | 2 years 6 months (premature encashment allowed after) |
| Risk | Government-backed — very low risk |
Rates are reviewed quarterly; the doubling period moves with the rate, so confirm the current terms at the time of purchase.
Who it suits
Conservative savers who want guaranteed, sovereign-safe growth over the long term and don’t need the money in between. It’s capital-protected but illiquid for the first 30 months.
Tax treatment
KVP offers no 80C deduction, and the interest is taxable at your slab rate (no TDS on maturity for residents, but you must declare it). For tax-saving alternatives, compare 80C options like PPF and ELSS.
KVP vs other safe options
KVP suits a “set and forget” doubling goal. If you want tax benefits, PPF or NSC may be better; if you want monthly income, consider POMIS. Match the instrument to whether you need growth, income or a tax break.
FAQs
How long does KVP take to double money?
About 115 months (9 years 7 months) at the current 7.5% rate; the period changes if the rate changes.
Is there a maximum investment in KVP?
No maximum; the minimum is ₹1,000.
Does KVP give a tax deduction?
No. There is no 80C benefit, and the interest is taxable at your slab rate.
Can I withdraw early?
Yes, after a lock-in of 2 years 6 months, subject to the applicable value.
