Beginner guide · 3-minute read
KVP, explained simply
Kisan Vikas Patra (KVP) is a government savings certificate that doubles your money. At today's 7.5% rate, that takes 115 months: 9 years and 7 months.
Checked on 14 Oct 2026 against the Ministry of Finance small savings rate notice for Oct–Dec 2026.
In one minute
- Who runs it
- The Government of India, through post offices and some banks.
- What it pays
- 7.5% a year, compounded yearly (Oct–Dec 2026).
- How long
- 115 months at today's rate. The term is set by the rate on the day you buy.
- How much
- From ₹1,000, with no upper limit.
How it works, with real numbers
Invest ₹1,00,000 today and get ₹2,00,000 back after 115 months.
Nothing is paid out along the way, but the interest is still taxable at your slab rate. You can pay tax on it each year as it builds up, or on all of it at maturity.
How the KVP rate has changed
KVP pays 7.5% today, unchanged since April 2023. Since its relaunch in September 2014, it has ranged from 6.9% (2020–2022) to 8.7% (2014–2016).
- The rate on the day you invest stays fixed for your whole term. Later changes, up or down, don't affect money you've already put in.
- The chart starts when KVP was relaunched in September 2014. The original KVP ran from 1988 to 2011: it doubled money in 5½ years at first, and in 8 years 7 months by the time it closed.
See every rate change (12)
| Period | Rate a year | Doubles in |
|---|---|---|
| Apr 2023 – now | 7.5% | 115 months |
| Jan 2023 – Mar 2023 | 7.2% | 120 months |
| Oct 2022 – Dec 2022 | 7% | 123 months |
| Apr 2020 – Sep 2022 | 6.9% | 124 months |
| Jul 2019 – Mar 2020 | 7.6% | 113 months |
| Oct 2018 – Jun 2019 | 7.7% | 112 months |
| Jan 2018 – Sep 2018 | 7.3% | 118 months |
| Jul 2017 – Dec 2017 | 7.5% | 115 months |
| Apr 2017 – Jun 2017 | 7.6% | 113 months |
| Oct 2016 – Mar 2017 | 7.7% | 112 months |
| Apr 2016 – Sep 2016 | 7.8% | 110 months |
| Sep 2014 – Mar 2016 | 8.7% | 100 months |
Source: National Savings Institute, Ministry of Finance, rates since launch; Oct–Dec 2026 from the Ministry's latest notice.
Pros and cons
Good things
- Simple promise. Your money doubles at a known date.
- Government-backed. As safe as it gets in India.
- No upper limit. And it can be transferred or pledged for a loan.
- Some flexibility. You can cash it after 2½ years, at a lower value.
Things to watch
- Long term. Nearly 10 years if you want the full doubling.
- No tax deduction. It doesn't count towards the ₹1.5 lakh deduction.
- Interest is taxable. At your slab rate.
- Same rate family as NSC. Similar return to other small savings schemes, with less flexibility than some.
Is it right for you?
Mistakes to avoid
- Forgetting the tax at maturity. If you haven't paid tax each year, the whole interest is taxable when it pays out.
How to start
- Visit a post office.
- Complete KYC with PAN and Aadhaar.
- Pay the amount and add a nominee.
Words you'll see
- Doubling period
- How long it takes to double: 115 months at 7.5%.
- Encash
- Cash in the certificate.
This guide explains how things work. It is not advice on what you should invest in. NetReturns is not SEBI-registered.