This is a small saving scheme that is implemented to which is implemented in the budget scheme of 2014. Earlier this scheme is available only for the farmers later that is modified and made available for everyone. The minimum that should be credited is 1000/- rupees. The renewal time is 9years10 months this is a scheme which is safe to park your saving for a long time. The income of returns will be double to that of the rate of investment. The following documents need to be submitted if the amount is in lakhs 

  1. If the amount is 50,000 and more a pan card needed to be provided as the proof
  2. If the amount is 10,00,000 then he needs to submit income certificate, bank statement   
  3. Each and every account holder need to submit the aadhar card as the proof


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  1. An individual above 18 and a citizen of India is eligible to enrol in this scheme
  2. A minor with a guardian assurance is also eligible under this scheme

FEATURES: There are some features as

  1. PREMATURE WITHDRAWAL: the permanent withdrawal is possible only through court order the amount will be issued after 30 days from the date of application
  2. MATURITY PERIOD: the maturity period of this scheme is 9years and 10 months
  3. ASSURED RETURNS: the scheme initially implemented for the farmers to save their money for the rainy season so they have a higher priority and this scheme definitely provides return after the tenure
  4.  EFFECTIVE INTEREST RATE: the rate of efficiency of interest depends on the number of years you invest
  5. BUDGET FRIENDLY: the minimum investment for this scheme is 1000 and the monthly savings is available in 100,200,500,10000,50000. The amount of 50000 can be credited only in the head post office.
  6.   CERTIFICATE INSURANCE: this doesn’t involve any market risks. The amount you credited will be returned to you after your time of tenure
  7. LOW TAXATION: tax deducted at source (TDS) is applied on withdrawal amount after the maturity period


                The table represents the information when the amount credited is above 1000

Time Amount Repaid (Rs)
2 .5 years but <3 years 1201
3 years but <3.5 years 1246
3 .5 years but <4 years 1293
4 years but <4.5 years 1341
4 .5 years but <5 years 1391
5 years but <5.5 years 1443
5.5 years but <6 years 1497
6 years but <6.5 years 1553
6.5 years but <7 years 1611
7 years but <7.5 years 1671
7.5 years but <8 years 1733
8 years but before the maturity 1798
9 years & 10 months ( 100% Return = 118 Months Investment) 2000


  1. Pan card copy needs to be submitted
  2. Voters id card as the proof of Indian citizen
  3. Driving license


                Step 1: collect the application form and submit it by filling the mandatory fields to the post office. If the investment is done through an agent then the agent will fill the form

                  Step 2: once your documents are verified then a KVP certificate is issued. The certificate needs to be submitted at the time of maturity.

BENEFITS:  There are some benefits that are available in this scheme are as given below

  • Flexibility in investments is available under this scheme
  • There are guarantee returns available as KVP is a government-issued certificate
  1.  As the tenure time is about 10 years this scheme allows you to stay focus for a long period of time
  • The KVP certificate plays a major role at the time of issuing loans by the bank as the KVP acts as the collateral
  • The fixed lock of this scheme is 2years 6 months.
  • The KVP certificate authentication can be changed from one person to the other by some formalities and the permission of postmaster


                      There are certain limitations for the eligibility of this premature amount

  • Withdrawals before 1 year are not accepted and the account holder needs to pay penalty as the rules
  • Withdrawal between 1-2.5 years will be returned with low-interest rates
  • Withdrawal after 2.5 years will receive the interest as per the rules


                   There are some types of KVP  as shown below

  1. Single holder certificate: it’s issued to an adult for self or even for minor
  2. Joint A certificate: it’s issued for two adults and the interest is returned to both the owners
  3. Joint B certificate: it’s issued for two adults but the amount will be returned to only one of the owners


        The following mentioned details needed to be filled in the application form as given below

  1. The amount for investment
  2. What is the mode of payment
  3. What is the type of KVP form
  4. Name of the investor with the date of birth and complete address need to be mentioned

If the applicant is a minor guardian signature is required 

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