Kisan Vikas Patra (KVP) Interest Rate 2023: The current interest rate on KVP account deposits is 7.2% compounded annually. The revised rate was announced on December 30. This rate would apply to KVP deposits made in the first quarter of the New Year 2023.
Amid rising inflation and repo rate hikes by the Reserve Bank of India, KVP depositors were expecting an upward revision in the interest rate. More so because even several banks are now offering higher interests on Fixed Deposit schemes than KVP. In past, KVP depositors have enjoyed a higher interest than bank FDs.
KVP Interest Rate 2023
The KVP interest rate applicable in the first quarter of 2023 (January-March) was announced on December 30, 2022. The new interest rate is 7.2%. The Union Government revises the Kisan Vikas Patra (KVP) interest rate on a quarterly basis. The next revision of the KVP interest rate will take place by the end of March 2023.
Also Read: What will be SSY account interest rate in New Year?
KVP Features 2023
Following are some features of the KVP account that you should know.
Guaranteed returns: KVP deposit is offered by Post Office. It enjoys a sovereign guarantee. So even if the post office fails, your deposits will be secure.
Amount doubles in 120 months: At 7.2% interest, the amount invested in the KVP account will double in 10 years.
Also Read: What will be the Public Provident Fund interest rate in New Year?
Deposit limit: The minimum amount you can deposit is Rs 1000 and there is no maximum investment limit.
Account for minors: Children above 10 years of age can have a KVP account in their own name.
No limit on the number of KVP accounts: Any number of KVP accounts can be opened under the scheme.
Also Read: What will be the SCSS Interest Rate in New Year?
Pledging as security: The KVP account can be pledged or transferred as security by submitting the prescribed application form at the concerned Post Office supported with an acceptance letter from the pledgee.
Premature closure: A KVP account can be closed prematurely after 2 years and 6 months from the date of deposit.