Post office KVP: Did you know that Kisan Vikas Patra, a government-backed savings scheme, doubles the money invested over a period of 10 years? A KVP account, set up in a post office or select branches of PSU banks such as SBI and PNB, requires minimum investment of Rs 1,000 with no upper limit, and offers an interest rate of 7.2 per cent compounded annually, according to India Post’s website, indiapost.gov.in. The amount of money parked in this government-backed savings scheme doubles in 120 months, according to India Post — which has more than 1,55,000 branches across the country.
Here’s a chart estimating the amount of money generated at the end of each year with an investment of Rs 1 lakh in a KVP account:
| End of year | Amount | Compounded return |
| 1 | 1,07,200 | 7,200 |
| 2 | 1,14,918.4 | 14,918.4 |
| 3 | 1,23,192.5 | 23,192.5 |
| 4 | 1,32,062.4 | 32,062.4 |
| 5 | 1,41,570.9 | 41,570.9 |
| 6 | 1,51,764 | 51,764 |
| 7 | 1,62,691 | 62,691 |
| 8 | 1,74,404.7 | 74,404.7 |
| 9 | 1,86,961.9 | 86,961.9 |
| 10 | 2,00,423.1 | 1,00,423.1 |
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