KVP interest rate
Deposits made into KVP accounts currently earn an interest rate of 7.2% annually compounded. For KVP deposits made in the first quarter i,e January – March 2023, this rate would be applicable.
According to the Ministry of Finance notification dated January 20, 2023, ““(1D) The maturity period of an account opened on or after the 1st day of January, 2023 shall be ten years and the deposits made in the account shall double on maturity.”
How to calculate premature closure value?
Here is a table showing premature closure value of account opened on or after 1st day of January, 2023 with 1000 rupees
| Period from the date of the certificate to the date of its encashment | Amount payable inclusive of interest (Rupees) |
| Two and half years but less than three years | 1162 |
| Three years but less than three and half years | 1198 |
| Three and half years but less than four years | 1234 |
| Four years but less than four and half years | 1272 |
| Four and half years but less than five years | 1311 |
| Five years but less than five and half years | 1351 |
| Five and half years but less than six years | 1392 |
| Six years but less than six and half years | 1435 |
| Six and half years but less than seven years | 1478 |
| Seven years but less than seven and half years | 1524 |
| Seven and half years but less than eight years | 1570 |
| Eight years but less than eight and half years | 1618 |
| Eight and half years but less than nine years | 1667 |
| Nine years but less than nine and half years | 1718 |
| Nine and half years but before Maturity of Certificate | 1771 |
| On maturity of certificate | 2000” |
The sums indicated may vary depending on how the interest rate on KVP changes. For the most recent values, please refer to the government statement.
Premature closure
According to the India Post website, KVP may be prematurely closed any time before maturity subject to the following conditions : –
(i) On the death of a single account, or any or all the account holders in a joint account
(ii) On forfeiture by a pledgee being a Gazette officer.
(iii) When order by court.
(iv) After 2 years and 6 months from the date of deposit.