Post office schemes are long term investments. They are for those who prefer traditional investments and have a long term goal.
Though post schemes give fewer returns than the stock market, they are less risky than the latter. In such a situation, investing in the post office can be a way for you to earn profit with almost zero risk.
But if you have more risk appetite then you can invest in equities like mutual funds, but if you are looking for a safe and zero risk investment then Post Office Saving Schemes can be a better option. One such post office scheme is Kisan Vikas Patra.
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Kisan Vikas Patra (KVP)
This scheme was started in 1988, back then, its objective was to double the investment of farmers, but now it has been opened to all. The Kisan Vikas Patra is a one-time investment scheme. The duration of this scheme is 124 months i.e. 10 years and 4 months.
If you invested in this scheme from 1st April 2022 to 30th June 2022, then the lump sum amount deposited by you doubles in 10 years and 4 months. Under this scheme, you get an annual compound interest of 6.9%.
Invest unlimited
You can buy a Kisan Vikas Patra certificate with a minimum investment of Rs 1,000, and there is no maximum investment limit in this scheme. That means you can put as much money as you want into this scheme.
PAN and Aadhaar are mandatory
There is also the risk of money laundering as there is no investment limit in this particular scheme, so the government has made PAN card mandatory in 2014 for investments above Rs 50,000. Apart from this, you also have to give your identity card.
If someone invests Rs 10 lakhs or more, then income proof will also have to be submitted, such as ITR, salary slip and bank statement etc.
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Three options
1. Single holder type certificate: This type of certificate is purchased for self or for a minor
2. Joint A account certificate: It is issued jointly to two adults. Returns are paid to both holders, or whoever is alive
3. Joint B account certificate: It is issued jointly to two adults. Returns are paid to only one holder.
