What this scheme offers
First launched in 1988 and relaunched in 2014 after a brief discontinuation, KVP is a lump-sum deposit certificate, unlike recurring schemes that need monthly contributions. You deposit once, and the government guarantees your money will double by the maturity date printed on the certificate — currently 115 months (9 years, 7 months) at the prevailing 7.5% annual interest rate (Q3 FY2026-27), compounded yearly. The rate that applies is locked in at the time you invest, so later rate revisions don't affect your existing certificate. Interest earned is taxable, and KVP doesn't carry a Section 80C deduction — it's built purely for guaranteed capital growth, not tax saving. A loan can be taken against your KVP certificate, and it can also be pledged as security with certain institutions.
Who is eligible
- Any resident Indian adult — individually, or jointly with up to three adults.
- A minor who has completed 10 years of age can hold a KVP account in their own name; an adult can also purchase one on behalf of a younger minor, issued in the child's name.
- No maximum investment limit; minimum deposit is ₹1,000.
Documents required
- Aadhaar card
- PAN card
- Address proof
- Passport-size photograph
How to open an account
- Visit any post office or authorised bank, and collect Form A (or download it from the official portal in advance).
- Fill out the form and submit it along with your KYC documents (Aadhaar, PAN, address proof).
- Deposit your investment amount by cash, cheque, demand draft or pay order.
- If you pay by cash, the certificate is issued on the spot; for cheque, DD or pay order, you'll wait until the payment clears.
- Your KVP certificate shows the investment amount, maturity date, and the guaranteed payout — keep it safe until maturity.
- Nominate a beneficiary at account opening to ensure smooth transfer in case of unforeseen events.