This post office scheme doubles your investment in just 10 years; details here

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It is never certain when people could need a huge amount of money at the time of emergency. But at that time, arranging that amount at once can be difficult. So, people want to invest a little amount day by day to secure their future.

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In this context, fixed deposit schemes are regarded as reliable for those who may not be very familiar with financial products and how they work, and rising interest rates are causing their popularity to increase. While it can seem complicated to open a fixed deposit account at any bank, there are some post office schemes that are secured by the government and guarantee handsome returns. People prefer Post Office Savings Schemes because of their modest initial investment, risk-free nature, and accessibility. One such scheme is Kisan Vikas Patra which offers to double the investment in just 10 years and 3 months (123 months).

Minimum investment and interest rate:

You can participate in the Kisan Vikas Patra plan with a minimum investment of Rs 1,000 and earn 7 percent annually. There is no upper cap on the money that can be invested and the amount is compounded annually. If any emergency situation arrives, a customer is able to prematurely terminate the FD account after two years and six months (30 months).

Eligibility criteria:

Any person over the age of 18 can open an account in the scheme. Additionally, three people or a minor’s guardian can hold a joint account. Also, a minor over the age of 10 can use this scheme in their own name. Application forms for the scheme are accessible online at India Post. They can also be collected from local post office branches.

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Reason behind the hike in KVP’s interest rate:

Banks have boosted their FD rates as a result of RBI’s several hikes to the repo rate over the past few months. As a consequence, the central government raised the rate of the small savings program by 0.30 percent for the third quarter (October–December). Due to this situation, the interest rate for the KVP plan was increased by 0.10 percent. Previously, the interest rate for the KVP scheme was 6.9 percent.