Should I invest in Kisan Vikas Patra?

[Mr.X]

Hi.

I recently got to know about the Kisan Vikas Patra (KVP). Is it worth it to invest in it? What are the current interest rates and maturity periods? Are there any tax advantages for me in it?

[Reema]

It's a safe investment that is backed by the government, making it worthwhile for long-term, low-risk savings. It offers a 7.5% interest rate per annum, compounded yearly, and your investment doubles in approximately 115 months. There are no specific advantages under Section 80C for KVP investment, and the interest earned is fully taxable.