What is the Kisan Vikas Patra?
Kisan Vikas Patra is a post office certificate that doubles your investment over a fixed period determined by the prevailing rate — currently about 9 years 7 months at 7.5%.
Unlike NSC, KVP offers no 80C deduction and the interest is fully taxable. Its appeal is simplicity, sovereign backing, and the ability to pledge it for loans.
Formula & worked example
The doubling period comes from the rule of compounding:
Worked example: at 7.5%, ln(2)/ln(1.075) = 9.58 years, or 9 years and 7 months. A ₹2,00,000 investment becomes ₹4,00,000 at maturity — ₹2 lakh of taxable interest.
How to use this kisan vikas patra calculator
- Enter the investment amount (minimum ₹1,000, no upper limit).
- The rate is revised quarterly; the doubling period changes with it.
- The maturity value is always exactly double the investment.
- Read the doubling period to compare against an FD of similar tenure.
Smart tips
- KVP has no 80C benefit — if tax saving matters, NSC or a tax-saving FD is the better choice.
- Premature encashment is allowed after 2 years 6 months, at reduced returns.
- KVP can be pledged as security for a loan, which term deposits at some banks cannot.
- Interest is taxable annually on an accrual basis, though no TDS is deducted.
- For long horizons, PPF beats KVP on both rate and tax treatment.
Frequently asked questions
How long does KVP take to double money?
About 9 years 7 months at the current 7.5% rate. The period is announced with each quarterly rate revision.
Is KVP interest tax-free?
No. KVP interest is fully taxable at your slab rate and there is no 80C deduction on the investment.
Can I withdraw KVP early?
Yes, after a lock-in of 2 years and 6 months, though you receive a reduced return.
Is KVP better than a fixed deposit?
Rates are comparable. KVP has sovereign backing and can be pledged; FDs are more liquid and available for shorter tenures.
Want the theory behind the numbers? Read our small savings guides on the Money Blog.