Kisan Vikas Patra calculator used to plan long term investment plan. The primary purpose of KVP scheme was to introduce long-term financial planning concepts to the public.
You can check KVP return by using Fincal KVP Calculator Online or Fincal Mobile APP. A Fincal Kisan Vikas Patra calculator can be used to determine the return amount at the time of maturity. It is a simple-to-use tool available in market.
What is KVP?
KVP stands for Kisan Vikas Patra, a savings scheme offered by the Government of India through post offices. It is designed to encourage long-term savings among individuals by providing guaranteed returns. KVP is especially popular among risk-averse investors due to its simplicity and government-backed security.
The KVP scheme was launched in 1988 as a small saving certificate scheme. Its main objective was to encourage people to adopt long-term financial discipline. At the time of launch, this scheme was directed towards farmers and the name. But today, anybody who fulfils its eligibility criteria can invest in it.
KVP is Risk-Free investment since it is backed by the Government of India, the investment is safe and secure. It does not have upper limit and allows investors to save substantial amounts without restrictions. This provides tax-free withdrawal of the maturity amount which is not subject to Tax Deducted at Source (TDS). If have feature of liquidity as the scheme has a lock-in period of 2.5 years, premature withdrawal is allowed thereafter under certain conditions, such as the death of the holder or a court order.
Key Features of Kisan Vikas Patra Online:
- Guaranteed Returns: The scheme guarantees that the invested amount will double over a fixed tenure.
- Fixed Tenure: The time required for the investment to double depends on the KVP interest rate, which is revised quarterly by the government. For example, if the interest rate on KVP is 7.5%, the amount will double in approximately 9 years and 7 months.
- Eligibility: Any Indian resident aged 18 or above can invest. Trusts can invest, but HUFs (Hindu Undivided Families) and NRIs are not eligible.
- Minimum Investment: ₹1,000 and multiples thereof. There is no upper limit.
- Transferability: The certificate can be transferred from one person to another or from one post office to another.
- Nomination Facility: Investors can nominate beneficiaries at the time of purchase.
- Loan Against KVP: Certificates can be used as collateral to avail loans from banks.
What is a Kisan Vikas Patra Calculator?
A KVP Calculator refers to a Kisan Vikas Patra Online Calculator, a tool that helps estimate the maturity amount and interest earned on an investment in the Kisan Vikas Patra scheme. KVP is a savings instrument backed by the Government of India, designed for long-term investment and generally used by individuals looking to invest in a safe, low-risk asset.
Key Features of a Kisan Vikas Patra Online Calculator:
- Principal Amount (Investment): The amount you invest in KVP.
- Tenure: The maturity period for KVP is typically 115 months (around 9 years and 7 months).
- Interest Rate: The government sets interest rate in Kisan Vikas Patra periodically (e.g., around 7.5% per annum).
- Compounding Frequency: Interest is compounded annually.
- Maturity Value: The total amount you receive when the KVP matures, including the principal and interest.
How to Calculate Maturity Amount of Kisan Vikas Patra
Formula Used to Calculate Maturity Amount:
A = P × (1 + r)^n
Where:
- A: Maturity amount.
- P: Principal amount (initial investment).
- r: Annual interest rate (in decimal form).
- n: Number of years (The amount invested doubles in about 9.5 years (115 months)).
However, the maturity amount for KVP is calculated differently because it is designed to double the investment over the set tenure (in this case, approximately 9 years and 7 months). So, KVP typically provides an easy way to understand the returns: your investment will double at the prevailing interest rate over the given period.
Example: If you invest ₹10,000 in KVP, and the scheme doubles the investment in around 9 years and 7 months, you will receive ₹20,000 at maturity, including interest.
Below Fincal KVP Calculator Online tool provide you graphical representation of your KVP investments. Also Fincal Mobile app available on Android play store which provide Kisan Vikas Patra calculator service on the go.
Benefits of a Kisan Vikas Patra Calculator:
- Quick Calculation: It simplifies the process of estimating the returns on your KVP investment.
- Accurate Estimates: Provides an exact maturity amount by factoring in the interest rate and compounding effects.
- Financial Planning: Helps individuals plan their savings and investment goals with certainty.
Frequently Asked Questions (FAQs)
What is Kisan Vikas Patra (KVP)?
KVP is a savings instrument backed by the Government of India that offers fixed returns and guarantees doubling your investment over a fixed period.
What is the tenure for KVP?
The tenure for KVP is 115 months (around 9 years and 7 months), at the end of which the investment doubles.
How is the interest calculated on KVP?
The interest on KVP is compounded annually, and the maturity amount is typically calculated based on the doubling of your initial investment over the set tenure. See more about financial calculator
Can I withdraw money from KVP before maturity?
No, premature withdrawal from KVP is not allowed. However, you can transfer the KVP to another person after a certain period.
Is KVP taxable?
The interest earned on KVP is taxable under the Income Tax Act, but the principal amount is not taxed.
Can I invest in KVP for a shorter duration?
No, the investment period is fixed at 115 months, and you cannot withdraw before the maturity period. However, the investment is flexible in terms of transfer to another person or reinvestment at maturity.
Which best mobile app or website available to calculate KVP returns?
Android Fincal Mobile App or Fincal KVP Calculator Online tool accurately calculate KVP return for you.