KVP Interest Rate

Discover the current KVP interest rate and make informed investment decisions for your financial goals.
KVP Interest Rate
3 min
16 July 2024

Kisan Vikas Patra (KVP) is a time-tested small savings instrument that combines the dual benefits of assured return and complete safety. The KVP interest rate is a crucial factor for investors, as it directly impacts the maturity value of the investment. Currently, the KVP offers an appealing investment avenue for those looking for guaranteed returns, with the interest rate being periodically revised by the government. The KVP current interest rate (Q1 FY 2024-25) is 7.5% per annum.

For those seeking flexibility, fixed deposits can be a good option. FD offer competitive interest rates and the option to choose tenure that aligns with your financial goals.

Pro tip

Enjoy higher interest rate with Bajaj Finance Digital FD. Unlock returns of up to 8.65% p.a. by investing for 42 months via website and app.

KVP interest rate chart


KVP Interest Rate

Q1 FY 2024-25 7.5% p.a.

Q4 FY 2023-24

7.5% p.a.

Q3 FY 2023-24

7.5% p.a.

Q2 FY 2023-24

7.5% p.a.

Q1 FY 2023-24

7.5% p.a.

Q4 FY 2022-23

7.2% p.a.

Q3 FY 2022-23

7% p.a.

Additional read: 
Fixed Deposit Interest Rates

Benefits of Kisan Vikas Patra (KVP)

Benefits of Kisan Vikas Patra (KVP) include:

  • Guaranteed returns: Kisan Vikas Patra offers a fixed interest rate, ensuring your investment grows steadily over time, regardless of market conditions.
  • Safety: As a government-backed scheme, KVP investments are considered highly secure.
  • Accessibility: KVP certificates are easily purchased from any post office.
  • Loan collateral: KVP certificates can serve as collateral against loans.

Eligibility criteria

The eligibility criteria for Kisan Vikas Patra (KVP) include:

  • Must be an adult Indian citizen.
  • Minors can invest with a parent/guardian as the account holder.
  • Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not eligible.

Documents needed to get a KVP certificate

To obtain a Kisan Vikas Patra (KVP) certificate, you typically need the following documents:

  • Identity Proof: Aadhaar card, Voter ID, PAN card, Passport, or Driving license
  • Address proof
  • Birth certificate
  • KVP application form

Application process for KVP

  • Find the KVP application form online or at any post office branch
  • Fill the form and submit it with the required documents
  • Pay the amount you want to invest
  • Your KVP certificate will be issued after your investment payment is processed

Premature closure

NSCs have a strict 5-year lock-in period. Premature closure is only allowed under these specific circumstances:

  • Death of the account holder(s).
  • Forfeiture by a pledgee (Gazetted Officer).
  • Court order.

How to transfer KVP from one person to another

  • Post Office Transfer: Fill out the KVP transfer form (download it here) and submit it with the necessary documents at your desired post office.
  • Transfer to Another Person: You can transfer your KVP to someone else, but you'll need approval from the post office where you bought it.

Taxability of Kisan Vikas Patra

Taxation of KVP interest depends on your accounting method. If you use the "cash basis," KVP interest is taxed in the year the certificate matures or is prematurely cashed out. The tax rate will be based on your income bracket for that specific year. However, if you use the "accrual basis," you'll calculate the KVP interest earned each year and pay taxes accordingly, with rates based on your income bracket for each individual year. Important to note: KVP investments don't qualify for tax deductions under Section 80C, and the interest earned isn't subject to TDS.

Kisan Vikas Patra vs Bajaj Finance Fixed Deposit


Kisan Vikas Patra

Bajaj Finance Fixed Deposit

Interest Rate


Up to 8.65% p.a.

Investment Lock-in

115 months

12 months to 60 months

Minimum investment

Rs. 1000

Rs. 15,000

Maximum investment

No maximum limit

Rs. 5 crore

Kisan Vikas Patra vs NSC


Kisan Vikas Patra

National Savings Certificate (NSC)

Interest Rate


7.7% p.a.

Tax Benefits


Yes, qualify for deduction Section 80(C)

Investment Tenure

115 months

5 years





Who should consider investing in KVP?

Individuals looking for a risk-free investment option with guaranteed returns and a flexible investment amount should consider investing in Kisan Vikas Patra. It's particularly suited for conservative investors who wish to increase their investment over a fixed period without any market-related risks.


The Kisan Vikas Patra (KVP) provides a reliable savings option for those who want guaranteed returns. Before investing, always check the latest KVP interest rate. Consider if its maturity period, tax implications, and features align with your overall financial goals.

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Frequently asked questions

What is the highest interest rate for KVP?

The KVP interest rate changes quarterly. As of April 2024 KVP offers 7.5% p.a.

Is KVP safe to invest?

Yes, KVP is considered a safe investment since it's backed by the Government of India. Your investment and interest are guaranteed.

Can I buy Kisan Vikas Patra in cash?

Yes, you can buy a KVP certificate using cash, subject to cash transaction rules in place at the time of purchase.

How many months will Kisan Vikas Patra double?

Kisan Vikas Patra can double your money in 115 months, which is equivalent to 9 years and seven months.

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As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.