For parents planning for their daughter’s future, the Post Office Kisan Vikas Patra (KVP) is a simple and safe way to double your investment. By depositing a fixed amount today, you can secure her financial future for education, marriage, or other important needs.
What is Kisan Vikas Patra (KVP)?
KVP is a government-backed saving scheme that allows your investment to double over a fixed period. It is safe, easy to open, and comes with assured returns.
The scheme is available at all post offices in India and requires minimal paperwork, making it ideal for first-time investors. Certificates can be issued in the name of your daughter, ensuring the maturity amount legally belongs to her.
How Much Time Does It Take to Double Your Money?
The current KVP interest rate ensures that your invested amount doubles in approximately 124 months (about 10 years and 4 months).
For example, if you deposit ₹5 lakh today, it will grow to ₹10 lakh by the end of the maturity period. Interest is compounded quarterly, which steadily increases your investment without extra effort.
How to Invest in Your Daughter’s Name
Investing in KVP for your daughter is simple:
- Visit your nearest post office.
- Fill out the KVP form.
- Provide identity proof for both yourself and your daughter.
You can deposit money in multiples of ₹1,000. In this case, ₹5 lakh will be the principal amount. Once deposited, a certificate is issued in her name, ensuring the maturity amount legally belongs to her.
Tax Benefits and Rules to Know
KVP does not offer tax deductions under Section 80C, but the scheme is exempt from TDS (Tax Deducted at Source).
The maturity amount is taxable according to the investor’s income tax slab. There is no restriction on the number of KVP certificates you can buy, giving flexibility for larger investments.
Early withdrawal is allowed after 2.5 years, but withdrawing early may reduce the full doubling benefit.
Advantages of KVP for Your Daughter’s Future
KVP is a safe and reliable investment:
- Guaranteed returns: Your principal is secure and will double over time.
- Instills saving habit: Helps parents and children plan finances systematically.
- Government-backed: No risk of losing capital.
By planning early and depositing ₹5 lakh today, your daughter can have ₹10 lakh in the future for her important life goals.
Conclusion
The Post Office KVP scheme is an excellent choice for long-term financial planning. Depositing ₹5 lakh in your daughter’s name ensures she will have ₹10 lakh in about 10 years and 4 months. With government backing and assured returns, KVP is a safe and disciplined way to build a financial corpus for your child.
FAQs
What is KVP?
Kisan Vikas Patra (KVP) is a government saving scheme that doubles your investment in a fixed period with guaranteed returns.
How long does it take for ₹5 lakh to double?
Currently, it takes about 124 months (10 years 4 months) for ₹5 lakh to become ₹10 lakh.
Can I invest KVP in my daughter’s name?
Yes, you can open a KVP certificate in your daughter’s name by providing identity proof for both parent and child.
Is KVP tax-free?
KVP is not tax-free. The invested amount does not qualify for 80C deduction, and maturity amount is taxable. It is, however, exempt from TDS.
Can I withdraw KVP before maturity?
Partial withdrawal is allowed after 2.5 years, but you may not get the full doubling benefit if withdrawn early.