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FD Interest Rates Vs PPF Vs KVP: Investment Options To Earn Better Than Fd Returns

The post office is operating many such schemes by investing in which you can earn more interest than fixed deposits.

The Public Provident Fund (PPF) of the post office is getting 7.1% interest and the Kisan Vikas Patra (KVP) is getting 6.9% interest. Presently SBI is offering a maximum interest of 5.40% on Fixed Deposit (FD). We are telling you about 5 such schemes of the post office where any person can get more interest than FD by investing.




Public Provident Fund (PPF)

  1. It can be opened with only 100 rupees, but then it is necessary to deposit 500 rupees in one go every year. The maximum amount that can be deposited in this account every year is Rs 1.5 lakh.
  2. This scheme is for 15 years. The amount cannot be withdrawn midway, but it can be extended after 15 years for another 5 to 5 years.
  3. It cannot be closed before 15 years, but after 3 years loan can be taken against this account.
  4. 7.1% interest is being available on PPF account.
  5. By investing in this scheme, the benefit of tax exemption can be availed under section 80C of the Income Tax Act on investment up to Rs 1.5 lakh.
  6. PPF comes under the exempt-exempt-exempt (EEE) category of income tax. This means that income from returns, maturity amount and interest are exempted from income tax.

How long will the money be double: It is getting 7.1% interest, so according to the rule of 72, if you invest money in this scheme, then it will take 10 years and 2 months for the money to double.

Kisan Vikas Patra (KVP)

  1. The Kisan Vikas Patra (KVP) savings scheme is currently getting 6.9% interest.
  2. There is no maximum limit to invest in KVP. However, your minimum investment should be Rs 1000.
  3. The age of the investor should be at least 18 years. Apart from the single account, there is also the facility of joint account.
  4. Minors can also join the scheme, but it will have to be supervised by their parents.
  5. If you want to withdraw your investment then you have to wait for at least 2.5 years. It has a lock-in period of two and a half years.
  6. By investing in this scheme, tax exemption can be availed under section 80C of the Income Tax Act on investments up to Rs 1.5 lakh.



How long will the money be double: It is getting 6.9% interest, so according to the rule of 72, if you invest money in this scheme, then it will take 10 years 5 months for the money to double.

National Saving Certificate (NSC)

  • Investment in NSC is getting interest at 6.8% per annum.
  • To open an NSC account, you have to invest a minimum of Rs 1000.
  • In this, a joint account can also be opened in the name of a minor and in the name of 3 adults.
  • You can invest any amount in NSC. There is no maximum investment limit in this.
  • By investing in this, under section 80C of the Income Tax Act, the benefit of tax exemption can be taken on investment up to Rs 1.5 lakh.

How long will the money be double: It is getting 6.8% interest, so according to the rule of 72, if you invest money in this scheme, then it will take 10 years 7 months for the money to double.

Time deposit

  1. Any person can open a fixed deposit account in the post office through cash or cheque.
  2. According to India Post, in case of cheque, the account will be deemed to be open from the date of receipt of the check amount in the account of the government.
  3. In this, a joint account can also be opened in the name of a minor and in the name of two adults.
  4. A minimum deposit of Rs 1000 is required to open a post office FD account. There is no maximum investment limit in this.
  5. It is getting an interest of 5.5 to 6.7% per annum for tenures ranging from 1 to 5 years.
  6. 5.5% interest on deposits of 1 to 3 years, while 6.7% per annum on investment for 5 years.
  7. Under section 80C of the Income Tax Act, a tax exemption of up to Rs 1.5 lakh can be taken on investment of 5 years.

How long will the money be double: It is getting 6.7% interest, so according to the rule of 72, if you invest money in this scheme, then it will take 10 years 9 months for the money to double.




Monthly Income Scheme

  • It is getting 6.6% interest. Under this scheme, the account can be opened with a minimum of Rs 1000.
  • If your account is single then you can deposit maximum up to Rs 4.5 lakh. On the other hand, if you have a joint account, then a maximum of Rs 9 lakh can be deposited in it. The maturity period is 5 years.
  • Under this scheme, if you invest Rs 4.5 lakh, you will get Rs 29,700 per annum as interest at an interest rate of 6.6% per annum.
  • On the other hand, if you invest 9 lakhs under a joint account in this, then you will get an interest of Rs 59,400 annually.
  • In this, a joint account can also be opened in the name of a minor and in the name of 3 adults.

How long will the money be double: It is getting 6.6% interest, so according to the rule of 72, if you invest money in this scheme, then it will take 10 years 11 months for the money to double.

What is Rule of 72?

Experts consider this to be the most accurate rule, which determines in how many days your investment will double. You can understand this in such a way that if you have selected a particular scheme of the bank, where you are getting annual percentage interest, then you will have to divide 72 by 8 under Rule 72. That is, 72/8 = 9 years, that is, your money under this scheme will double in 9 years.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ praveshmaurya24@gmail.com
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