KVP Interest Rate 2019

What is the interest rate on KVP (Kisan Vikas Patra) for 2019? How and when the interest rates of KVP set? We try to answer these common queries in this post.

Kisan Vikas Patra (KVP) is a deposit scheme by Government of India where the investor deposits the money and gets back double of the same at the time of maturity

How and when does the interest rates change?

Starting April 2016, Government of India announces interest rate on small saving schemes including KVP,  NSC, Senior Citizen Savings Scheme, PPF, Sukanya Samriddhi Account, Post Office Fixed and Recurring Deposits every quarter. This is done to keep these interest rates in sync with the market rates.

The good thing about KVP is unlike PPF or Sukanya Samriddhi  once invested the interest rate remains unchanged over the tenure of the deposit.

The table below shows the interest reset schedule:

Quarterly Interest Reset Schedule for Small Savings Schmes

Quarterly Interest Reset Schedule for Small Savings Schemes

Also Read: Best Tax Saving Investments u/s 80C

KVP Interest Rate:

Interest Rate: Government of India declares the interest rates every quarter. The interest rates for Jul to Sep 2019 is 7.6% compounded annually.

Maturity Period: Depending on the interest rate the maturity tenure changes as its dependent on the months it takes to double the money. For Jul to Sep 2019 the maturity tenure is 113 months with interest rate of 7.6%.

For Kisan Vikas Patra, you may many times just find the maturity period rather than interest rate. The table below gives the details of KVP interest rates (& maturity period) over the years

Financial yearApr – JunJul – SepOct – DecJan – Mar
2019 – 207.70% (mature in 112 months)7.60% (mature in 113 months)  
2018 – 197.80% (mature in 110 months)7.80% (mature in 110 months)7.80% (mature in 110 months)7.70% (mature in 112 months)
2017 – 187.60% (mature in 113 months)7.50% (mature in 115 months)7.50% (mature in 115 months)7.80% (mature in 110 months)
2016 – 177.80% (mature in 110 months)7.80% (mature in 110 months)7.70% (mature in 112 months)7.70% (mature in 112 months)

Also Read: Kisan Vikas Patra – Eligibility, Features & Maturity

Before Quarterly Reset of Interest Rates:

Time PeriodInterest RateMaturity Duration
23 Mar 1988 to 23 Apr 199213.43%66 Months
24 Apr 1992 to 1 Sep 199314.87%60 Months
2 Sep 1993 to 31 Dec 199813.43%66 Months
1 Jan 1999 to 14 Jan 200012.25%72 Months
15 Jan 2000 to 28 Feb 200111.25%80 Months
1 Mar 2001 to 28 Feb 200210.03%87 Months
1 Mar 2002 to 28 Feb 20039.46%92 Months
1 Mar 2003 to 30 Nov 20118.41%103 Months
1 Dec 2011 to 17 Nov 2014XDiscontinued
18 Nov 2014 to 31 Mar 20168.70%100 Months
KVP Interest Rate

KVP Interest Rate

KVP – Investment Rules

  • The minimum investment limit is Rs 1,000
  • There is NO upper limit for investment in KVP
  • Aadhar number is compulsory for investing in KVP
  • PAN card is required if the investment is more than Rs 50,000
  • In case the deposit is more than Rs 10 Lakhs, investors need to submit income proof like Salary slips, bank statement, Income tax return, etc
  • KVP is available in denominations of Rs. 1000, Rs. 5000, Rs. 10,000 and also Rs. 50,000 for investment.

Download: Free ebook for Income Tax Planning for FY 2019-20

TDS & Tax on KVP:

  • Taxation: The interest income is fully taxable and taxed at your marginal income tax rates.
  • TDS: There is NO TDS (Tax Deducted at Source) for KVP
  • Tax Benefit: There is NO tax benefit on purchase of KVP

Download: Excel based Income Tax Calculator

Who can Invest in KVP?

  • Any Indian citizen with age of more than 18 years can buy Kisan Vikas Patra.
  • A parent/guardian may also invest on behalf of a minor.
  • KVB can also be purchased in joint name
  • HUFs and NRIs are not eligible to buy KVP. However trusts can buy

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