Investment Plans

Post Office Scheme To Double The Money

Dec 01, 2021

Plethora of investment opportunities, but a wisely chosen investment option can even double the capital. One such traditional scheme for wealth creation is offered by the post office. But, these investment tools are supposed to serve long-term financial goals. 

Time dependent deposit scheme

The time deposit scheme of the traditional investment instrument of the post office. This is a great way to enhance the money within a short span. This is because the rate of interest offered by these options is higher than any bank interest. No bank offers more than 6% p.a. interest rate on an average. The post office, however, offers 6.7% p.a. In the time deposit scheme, one can choose between 1 year, 2 years, 3 years or 5 years. 

If the amount is invested for 5 years for the interest of 6.7% p.a., then the money will get doubled in approximately 10.74 years or 129 months, for that matter, whereas, it takes around 152 months for the bank to reach that mark. Under this scheme, a maximum of three accounts can be opened by a single individual. Responsible and concerned parents can open it in the name of their child or children above the age of 10 years. 

In case of premature withdrawal, there are penalty charges. Moreover, nomination facilities are also applicable under this scheme. It even offers tax redemption benefits under Section 80C of the Income Tax Act.

Kisan Vikas Patra (KVP)

KVP or the Kisan Vikas Patra is one of the most popular investment instruments and a safe small savings scheme option offered by the Indian Post. The total maturity scheme is 124 months with a rate of interest of 6.9% p.a. 

KVP is backed by the government. Therefore, the investor receives the guarantee of safety and security. The rate of interest remains fixed for any particular investment throughout the tenure, irrespective of any sort of market revisions. This paves the way for doubling the money of any investor faster than any bank facilities. 

The maximum tenure of KVP is 124 months i.e. 10 years and 4 months. An INR 1,000 investment will double itself within the 10-year tenure. One of the most highlighting features of this scheme is that there is no upper limit restriction margin for KVP investment while the minimum limit is INR 1,000. The investment should be in multiples of 100. 

The key to a successful investment is diversification. It is advisable to invest a certain percentage of the total invested amount into the KVP scheme for a safe and secured investment option with assured good returns. Moreover, there are nomination facilities too. 

Any departmental post office with the nomination facilities deals with the sales of KVP. The KVP certificate is transferable from person to person as well as branch to branch. The investor is eligible to withdraw or encash the amount, not before the initial 2.5 years has elapsed, since the date of the issue. 

Eligibility for opening KVP account

  • Single adult
  • Joint A account with a maximum of 3 members
  • Joint B account with a maximum of 3 members
  • Any legal guardian of a mentally unstable person

Post office investments being one of the most conventional sorts of investment options offers the guaranteed assurance of doubling the invested amount in the long run, faster than banks. Any successful investor, with a diversified investment portfolio, cannot ignore KVP investment because of its security and assured return guarantee.

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