Fixed income investors are scrambling to find the bank that guarantees the highest interest rates as the bank’s fixed deposit rates are on the rise. Individuals should be aware that the State Bank of India (SBI) recently announced a rate hike of up to 80 basis points on October 22, 2022. Following the most recent hike, SBI is now offering to the public the maximum interest rate. interest rate is 6.25% for deposits with a term of 2 to 3 years and the elderly have a maximum interest rate of 6.90% for deposits with a term of 5 to 10 years. Fixed-income investors looking for even better interest should know that Kisan Vikas Patra, a postal savings program that not only doubles investors’ money, but also offers interest. significantly higher than SBI FD.
Kisan Vikas Patra
One small savings scheme backed by the Indian government is Kisan Vikas Patra (KVP). The investment amount doubles over the term of the program, which is 123 months (10 years and 3 months). A KVP account can be opened at any post office nationwide by an adult, a joint account (up to 3 adults), a guardian on behalf of a minor, or a careless person or minors over 10 years old in his or her own name. A minimum deposit is Rs. 1000, in multiples of Rs. 100, which is required with no upper limit to make the account work.
Under this program, a resident customer can open an unlimited number of accounts. KVP can be transferred from one individual to another when the account holder dies leaving designated heirs, or legally upon the death of the account holder leaving co-owners, as the court orders or when the account is committed to a designated authority.
Kisan Vikas Patra Calculator
On some small savings schemes, the government has raised interest rates by up to 30 basis points (bps) for the third quarter (October to December) of the current financial year, or fiscal year 23. Government revised term and interest rate for Kisan Vikas Patra (KVP). Compared to the previous interest rate of 6.9% and maturity of 124 months, KVP’s new interest rate will be 7% and maturity is 123 months. As a result, the interest rates offered by KVP are higher than those of SBI as well as FD rates from many reputable institutions, including ICICI Bank, HDFC Bank, Axis Bank, BoB, PNB, and many others. If you invest Rs. 1 lakh in KVP today you will get Rs. 2,00,000 when it matures on December 29, 2031.
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