KVP at a glance
| Interest rate | 7.5% a year (October–December 2026), compounded yearly |
|---|---|
| Maturity | Doubles in 115 months (9 years 7 months) |
| Deposit | ₹1,000 minimum, in multiples of ₹100; no maximum |
| Who can buy | Resident adults, singly or jointly (up to three); a guardian for a minor; a minor of 10 or more |
| Early encashment | After 30 months, at a reduced value |
| Tax | Interest taxable; no 80C deduction |
| Transfer and pledge | Can be transferred to another person or post office, and pledged for a loan |
| Where to buy | Any post office or authorised bank |
Worked example: ₹1 lakh in KVP
| After | Value |
|---|---|
| 1 year | ₹1,07,500 |
| 2 years | ₹1,15,562 |
| 3 years | ₹1,24,230 |
| 4 years | ₹1,33,547 |
| 5 years | ₹1,43,563 |
| 6 years | ₹1,54,330 |
| 7 years | ₹1,65,905 |
| 8 years | ₹1,78,348 |
| 9 years | ₹1,91,724 |
| 115 months (maturity) | ₹2,00,000 |
Values before maturity show growth at 7.5% a year; the amount paid if you encash early follows the government’s table and is a little lower. Try any amount with the KVP calculator.
Encashing early
KVP is locked for the first 30 months (2½ years). After that you can cash it at any time, and receive the amount set out for that period in the scheme rules, which works out to slightly less than the full rate. Before 30 months it can be cashed only on the death of a holder, when a lender that holds it as security forfeits it, or on a court order.
Tax on KVP
KVP gives no deduction under Section 80C, under either regime. The interest is taxable at your slab rate; you can show it each year as it accrues, or all in the year of maturity. No TDS is deducted, so remember to include it in your return.
How to buy KVP
At a post office or authorised bank, fill in the application and show your Aadhaar and a photograph; PAN is compulsory for ₹50,000 or more, and for more than ₹10 lakh you also need proof of where the money came from (salary slips, bank statements or an ITR). The certificate is issued in electronic form, recorded in a passbook. Name a nominee when you buy it.
KVP compared with the alternatives
- NSC pays 7.7% for 5 years and counts for 80C under the old regime, but cannot be cashed early.
- The 5-year post office time deposit pays 7.5%, compounded quarterly, with interest paid out yearly.
- Bank FDs can be broken at any time, usually with a 0.5–1% penalty; see bank FD rates.
Frequently asked questions
In how many months does KVP double in 2026?
115 months (9 years 7 months) at the current rate of 7.5% a year. The period is fixed on the day you buy the certificate.
How much will ₹1 lakh in KVP become?
₹2 lakh after 115 months. Along the way it is worth about ₹1,24,230 after 3 years and ₹1,43,563 after 5.
Can KVP be encashed before maturity?
Yes, after 30 months (2½ years), at a reduced value set out in the rules. Earlier encashment is allowed only on a holder’s death, forfeiture by a pledgee, or a court order.
Is KVP interest taxable?
Yes, at your slab rate, and the investment does not qualify for Section 80C. You can declare the interest each year as it accrues or all at once at maturity.
Is there a maximum limit for Kisan Vikas Patra?
No. The minimum is ₹1,000, in multiples of ₹100. PAN is required for ₹50,000 or more, and proof of the source of funds above ₹10 lakh.
Do you have to be a farmer to buy Kisan Vikas Patra?
No. Despite the name, any resident Indian adult can buy KVP, alone or jointly with up to two others, or on behalf of a minor.
Sources
- National Savings Institute – Kisan Vikas Patra
- Department of Economic Affairs – small savings interest rates
- India Post – savings schemes
Last checked on 6 October 2026. The rate and the doubling period for new certificates are reviewed every quarter.