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Small savings scheme doubles money in 123 months, pays more interest than SBI FD


Fixed-income investors are scrambling to find the bank guaranteeing the highest interest rates in light of the rising interest rates on bank fixed deposits. Individuals ought to be aware that the State Bank of India (SBI) recently announced an increase in interest rates of up to 80 basis points on October 22, 2022. Following the most recent uptick, SBI is now providing the general public with a maximum interest rate of 6.25% on deposits maturing in 2 to 3 years, and senior citizens with a maximum interest rate of 6.90% on deposits maturing in 5 to 10 years. Fixed-income investors looking for even better interest rates should be aware that the Kisan Vikas Patra, a post office savings scheme not only doubles investors’ money but also offers interest rates that are significantly higher than SBI FD.

Kisan Vikas Patra

A small savings scheme backed by the Indian government is Kisan Vikas Patra (KVP). The investment amount doubles during the term of the scheme, which is 123 months (10 years and 3 months). A KVP account can be opened at any post office in the nation by a single adult, a joint account (up to 3 adults), a guardian on behalf of a minor or a person of unsound mind, or a minor over 10 years old in his own name. A minimum deposit of Rs. 1000, in multiples of Rs. 100, is required with no upper limit to make the account operational. 

Under the scheme, a resident customer may open an unrestricted number of accounts. KVP can be transferred from one individual to another when the account holder passes away leaving nominated or legal heirs when the account holder passes away leaving joint holders, when the court issues an order, or when the account is pledged to the designated authority.

Kisan Vikas Patra Calculator

On a number of small savings schemes, the government had raised interest rates by as much as 30 basis points (bps) for the third quarter (October to December) of the current fiscal year, or FY23. The government has modified the tenure and interest rates for Kisan Vikas Patra (KVP). In comparison to the previous interest rate of 6.9 per cent and the maturity period of 124 months, the new rate for KVP would be 7 per cent and the maturity period would be 123 months. As a consequence, the interest rate offered by KVP is higher than that of SBI as well as that of FDs from a variety of prestigious institutions, including ICICI Bank, HDFC Bank, Axis Bank, BoB, PNB, and many more. If you invest Rs. 1 lakh in KVP today, you would receive Rs. 2,00,000 when it matures on December 29, 2031.

Kisan Vikas Patra Calculator

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Kisan Vikas Patra Calculator (

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