Kisan Vikas Patra vs Fixed Deposit: Which Safe Investment Works Better for You?

When you're planning for the future, two investment tools often rise to the top: Kisan Vikas Patra (KVP) and Fixed Deposits (FDs). Both are considered safe, low-risk options ideal for conservative investors. But while they share the promise of guaranteed returns, they’re designed for very different needs.

Let us decode the key differences so you can choose what suits your financial goals best—whether it’s long-term wealth creation or liquidity with predictable growth.

What is Kisan Vikas Patra (KVP)?

KVP is a government-backed savings scheme available at India Post offices. It is best known for doubling your investment in a fixed period, currently 115 months (9 years and 7 months), with an interest rate of ~7.5% compounded annually.

• Guaranteed by the Government of India
• Ideal for long-term savers
• Cannot be withdrawn before 2.5 years
• No tax benefits under Section 80C

Who it’s for: Investors looking for assured returns and who don’t need access to their funds anytime soon.

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Topic	Mandatory/ Optional	Char Limit	Content to update on page
Heading Text	Mandatory	90 Char	Highest Credit Ratings | Trusted with 1.4 million Deposits | Assured Returns on FD
CTA Text	Mandatory	40 Char	Open FD
CTA Link	Mandatory		https://www.bajajfinserv.in/webform/Deposit/depositLandingPage#fd
Nudge 1	Mandatory		Senior Citizen
Title 1 (Rate of Interest) R1	Mandatory	17 Char	Interest Rate*
Value		10	Up to 7.30% p.a.
Title 2 (Min. Deposit) R1	Mandatory	17 Char	Flexible Tenure
Value		10	12-60 months
Title 3 (Min. Tenor) R1	Mandatory	17 Char	Deposit Amount
Value		10	Rs. 15,000 to Rs. 3 cr
Nudge 2	Mandatory		Non-Senior Citizen
Title 1 (Rate of Interest) R1	Mandatory	17 Char	Interest Rate*
Value		10	Up to 6.95% p.a.
Title 2 (Min. Deposit) R1	Mandatory	17 Char	Tenure
Value		10	12-60 months
Title 3 (Min. Tenor) R1	Mandatory	17 Char	Deposit Amount
Value		10	Rs. 15,000 to Rs. 3 cr
Field 1			Enter your mobile number
Field 2			Please enter your 10-digit mobile number to proceed
Disclaimer text	Mandatory		By proceeding, you agree to ourTerms and Conditions
XF Path			/content/experience-fragments/bajajfinserv/web/in/en/investment/deposits/fd/form-widget/master

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Topic	Mandatory/ Optional	Char Limit	Content to update on page
Heading Text <H1>	Mandatory	45 Char	Fixed Deposit
Description Text	Mandatory	90 Char	Trusted by over 5 lakh customersFixed Deposits worth more than Rs. 50,000 crorebookedRated CRISILAAA/STABLEand [ICRA]AAA(STABLE)Special tenure of 18, 22 and 33 months offered for higher returnsUp to 0.35% p.a. extra interest offered for senior citizensFlexible interest payout optionsavailable - Monthly, Quarterly, Half-yearly, Annually or at Maturity

New Component – INSTA FD :-

For ETB Customers (Logged-in) :

For web:-

Topic	Mandatory/ Optional	Char Limit	Content to update on page
Heading 1 Text	Mandatory	90 Char	Your consolidated deposits summary
Right CTA 1 Text	Mandatory	40 Char	View Portfolio
Right CTA Link	Mandatory		https://bajajfinserv.in/myaccountlogin?Source=Loan_FD
Main CTA Text			OPEN FD IN 3 STEPS
Main CTA Link			https://www.bajajfinserv.in/webform/Deposit/insta-landing-page
Title 1 (Rate of Interest) R1	Mandatory	17 Char	Total Amount Invested
Value		10	<API driven>
Title 2 (Min. Deposit) R1	Mandatory	17 Char	Total Interest Earned
Value		10	<API driven>
Title 3 (Min. Tenor) R1	Mandatory	17 Char	As on Date
Heading 2		10	Book a new FD Instantly
Description 2			Click to replicate a previous FD investment or initiate a new one

Note - As the values are API driven, we will be updating the title of the fields/ sections.

R1/ R2 – Rows wise distribution of table/ fields. Reach out in case of any query

What is a fixed deposit (FD)?

FDs are one of India’s most popular investment tools, offered by banks and NBFCs. You lock in a lump sum for a chosen period and earn a fixed rate of interest.

• Flexible tenures from 7 days to 10 years
• Interest payout options – monthly, quarterly, or at maturity
• Premature withdrawal allowed (with a small penalty)
• Some FDs qualify for Section 80C tax benefits

Who it’s for: Those seeking short-to-medium-term returns with the flexibility to access funds if needed.

Want flexible tenures and predictable returns?

With Bajaj Finance Fixed Deposit, you get high interest rates of up to 7.30% p.a. and flexible payout options. Open FD Account.

KVP vs FD: A Quick Comparison

Feature	Kisan Vikas Patra (KVP)	Fixed Deposit (FD)
Issuer	India Post (Govt. of India)	Banks & NBFCs
Tenure	Fixed at 115 months	Flexible – 7 days to 10 years
Returns	~7.5% p.a. (doubles in 115 months)	Varies: 6% to 8% p.a.
Interest payout	Only at maturity	Monthly, quarterly, or on maturity
Premature exit	After 2.5 years	Available with small penalty
Tax benefits	None	Available on 5-year tax-saving FDs

Make your money work harderBajaj Finance offers FDs with returns up to 7.30% p.a. for senior citizens—significantly higher than many traditional schemes. Check FD Rates.

Example: Rs. 1 Lakh Investment in KVP vs FD

Let’s say you invest Rs. 1,00,000:

In KVP, it will become Rs. 2,00,000 in 115 months (~9.5 years).

In an FD offering 7.50% interest, you reach the same amount in slightly under 9.5 years—but with flexibility, better liquidity, and optional periodic payouts.

Invest 100% online, from anywhere!Unlike KVP, FDs with Bajaj Finance can be booked online in minutes—no branch visits, no paperwork. Open FD Online.

Component – Fixed deposit variants

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Topic	Mandatory/ Optional	Char Limit	Content
Heading Text <H2>			Fixed deposit variants
Description text			Highest Credit Ratings | Trusted with over 1.4 million Deposits | Assured Returns on FD
Nudge 1	Mandatory		Recommended
Text 1	Mandatory		FD - Special Tenure -18 Months
Subheading	Mandatory		INTEREST RATES UP TO 7.30% p.a.
CTA	Mandatory		Invest Online
CTA Link	Mandatory		https://www.bajajfinserv.in/investments/fixed-deposit
Text 2	Mandatory		FD - Special Tenure - 22 Months
Subheading	Mandatory		INTEREST RATES UP TO 7.10% p.a.
CTA	Mandatory		Invest Online
CTA Link	Mandatory		https://www.bajajfinserv.in/investments/fixed-deposit
Text 3			FD - Special Tenure - 33 Months
Subheading	Mandatory		INTEREST RATES UP TO 7.30% p.a.
CTA Text	Mandatory		Open FD
CTA Link			https://www.bajajfinserv.in/investments/fixed-deposit
Text 4	Mandatory		FD - Age below 60
Subheading	Mandatory		INTEREST RATES UP TO 6.75% p.a.
CTA Text	Mandatory		Open FD
CTA Link	Mandatory		https://www.bajajfinserv.in/investments/fixed-deposit
Text 5	Mandatory		FD - Senior Citizen
Subheading	Mandatory		INTEREST RATES UP TO 7.30% p.a.
CTA Text	Mandatory		Open FD
CTA Link	Mandatory		https://www.bajajfinserv.in/investments/fixed-deposit
Text 6	Mandatory		FD – Minor
Subheading	Mandatory		INTEREST RATES UP TO 6.75% p.a.
CTA Text	Mandatory		Open FD
CTA Link	Mandatory