Farmer development letter
If you also want safe and good returns in the long term, then the post office schemes can be a better option for you. On many post office schemes, investors are getting more interest than the fixed deposits (FD) of banks. Public Provident Fund (PPF), Sukanya Samriddhi Yojana and Senior Citizen Savings Scheme (SCSS) are some such popular schemes in which 8% or more interest benefits. Similarly, there is another popular scheme of the post office. Kisan Vikas Patra (KVP). In this, investors get 7.50% compound interest annually.
Why is the farmer development letter special?
Kisan Vikas Patra is considered one of the most trusted schemes of the post office. Money is completely safe in this and its return is also fixed. Any citizen over 18 years of age can open an account in this scheme. If you want, 3 people can also take a joint account. You can start with just Rs 1,000 and there is no maximum investment limit.
Another specialty of this scheme is that even a child over 10 years of age can invest in it. Its maturity period is about 10 years, but if needed, you can withdraw premature after 2 years 6 months. Nominee facility is also available, so that your family will also get the benefit of your investment.
If you invest 1 lakh rupees in the farmer development letter, then this amount on maturity will be about 2 lakh rupees. Similarly, you can get about 10 lakh rupees by applying 5 lakh rupees.
Will it get tax exemption?
The Kisan Vikas Patra comes under the purview of Income Tax Act, 1961, so it can get tax exemption under section 80C. If you invest more than Rs 50,000, then you have to give PAN card details. The special thing is that you can also take a loan by mortgaging this scheme.
How to buy Kisan Vikas Patra?
- First of all go to the nearest post office or a government bank branch.
- From there, take the application form of Kisan Vikas Patra and fill the correct information.
- Apply a photo copy of the necessary documents by applying passport size photos, sign or thumb, submit the form. For more information, you can also call 1800 266 6868 helpline number.
- Some banks like ICICI Bank, HDFC Bank and IDBI Bank also provide facility to open KVP accounts online.