Accumulate Rs. 1,46,000 with a Daily Contribution of Rs. 200 in KVP
Kisan Vikas Patra (KVP) is a popular savings scheme offered by India Post. It is a safe and secure investment option that offers attractive returns. One of the key benefits of KVP is that it allows investors to accumulate a substantial amount of wealth with a small daily contribution.
Investment Details
To invest in KVP, you need to make a minimum contribution of Rs. 1,000. The maximum investment limit is Rs. 2 lakhs per person. The interest rate on KVP is currently set at 6.9% per annum. The maturity period of KVP is 124 months (10 years and 4 months).
Accumulation Plan
Let’s consider an example of how you can accumulate Rs. 1,46,000 with a daily contribution of Rs. 200 in KVP.
Year 1
* Total contribution in Year 1 = Rs. 200 x 365 days = Rs. 73,000
Year 10
* Interest earned in Year 10 = Rs. 73,000 x 6.9% x 10 = Rs. 50,531
* Total value at the end of Year 10 = Rs. 73,000 + Rs. 50,531 = Rs. 1,23,531
Year 10.3
* Maturity value = Rs. 1,23,531 x (1 + 6.9% x 3/12) = Rs. 1,25,369
* Amount to be invested in additional months = Rs. 1,46,000 – Rs. 1,25,369 = Rs. 20,631
Year 10.4
* Total contribution in additional months = Rs. 20,631 / Rs. 200 = 103 days
Therefore, by making a daily contribution of Rs. 200 in KVP for 10 years and 4 months, you can accumulate Rs. 1,46,000.
Benefits of KVP
* **Safe and secure:** KVP is backed by the Government of India, making it a safe and secure investment option.
* **Attractive returns:** KVP offers attractive returns compared to other savings schemes.
* **Tax benefits:** Interest earned on KVP is tax-free.
* **Liquidity:** KVP can be encashed at any time after 2 years and 6 months from the date of investment.
Conclusion
Kisan Vikas Patra is an excellent savings scheme for individuals who want to accumulate wealth with a small daily contribution. By investing Rs. 200 per day in KVP, you can accumulate Rs. 1,46,000 in just 10 years and 4 months.
Kind regards
J. Ross
