In KVP Vs SBI FD- Post Office Savings Scheme, banks get more interest than FDs. But, it is important to know where the money will double soon?
Traditional investment or, say, the old savings system is still considered successful today. This is the reason that when it comes to investing or saving, getting FDs in post office schemes or banks like State Bank of India is the first choice. In post office small savings scheme, banks get more interest than FDs. However, keeping in mind where your money will grow quickly and how much will increase, you should invest in it. Post Office Kisan Vikas Patra or SBI Fixed Deposit Scheme (KVP Vs SBI FD), which is beneficial for you. Let’s know ..
KVP Vs SBI FD: 6.9% interest is received on investment in the Post Office Kisan Vikas Patra (KVP) scheme. At the same time, the country’s largest bank offers a maximum interest of 5.40% on SBI Fixed Deposit. There is a great difference in interest rates between the two. In such a situation, a direct advantage is visible here. However, one should invest by looking at many aspects and not just the interest rate.
Kisan Vikas Patra (KVP)
- 6.9% interest on investment in Kisan Vikas Patra (KVP).
- The minimum investment in KVP is 1000 rupees. There is no maximum investment limit.
- The age of the investor is required to be at least 18 years. Single and joint account facility.
- Minors cannot directly invest in it, but parents can open their account.
- After 2.5 years of lockin, you can withdraw the invested money.
Tax is exempted under Section 80C of the Income Tax Act on deposits.
SBI Fixed Deposit
In State Bank of India (SBI), you can FD for 7 days to 10 years. The bank pays 2.9 to 5.4% interest on it. Investing in FD for 5 years gives the benefit of tax exemption under section 80C of Income Tax Act 1961. Under 80C, tax rebate is available for investments up to Rs 1.5.
How much interest is SBI paying on FD
| Period | Interest rate |
| 7 to 45 days | 2.9% |
| 46 to 179 days | 3.9% |
| 180 to 210 days | 4.4% |
| 211 to one year | 4.4% |
| 1 year to less than 2 years | 4.9% |
| 2 years to less than 3 years | 5.1% |
| 3 years to less than 5 years | 5.3% |
| 5 years to 10 years | 5.4% |
Where will the money quickly double?
Maximum 6.90% interest is being earned on investing in KVP. According to the rule of 72, if you invest money in this scheme, then it will take about 10 years and 4 months for the money to double. The maximum interest is getting 5.40% in SBI FD, according to the rule of 72, if you put money in this scheme, then it will take 13 years and 4 months for the money to double.
