Kisan Vikas Patra (KVP) interest rate July-September 2025

Kisan Vikas Patra interest rate July-September 2025: The Finance Ministry has announced the KVP interest rate for the July-September quarter of FY 2025-26 today (June 30, 2025).

The KVP scheme is offering 7.5% interest currently to account holders.

Who can invest in KVP?

The KVP account can be opened by the following:

• A single adult
• Joint Account (up to 3 adults)
• A guardian on behalf of a minor or on behalf of a person of unsound mind
• A minor above 10 years in his own name.

The KVP scheme currently offers 7.5% interest compounded annually. The scheme allows a minimum investment of ₹1000, but there is no upper limit.

However, any amount invested in KVP doubles in 115 months (9 years and 7 months). The amount once deposited in KVP can be withdrawn only on maturity. However, premature closure is allowed in some conditions.

KVP interest rate: What was expected?

The KVP interest rate has remained unchanged at 7.5% since April 1, 2023. However, a reduction in the Kisan Vikas Patra interest rate, along with other small savings schemes, was anticipated on June 30, 2025. This was because of the falling secondary market yield of Central Government securities (G-secs) since January 2025.

Since January 2025, G-sec yields have declined while the Reserve Bank of India (RBI) has also reduced its repo rate by 100 bps (1%). This provided a reason for the Government to reduce the KVP interest rate.

However, it was also expected that the Finance Ministry would keep the KVP interest rate unchanged, as the scheme helps millions of depositors double their money in 9 Years 7 Months with a sovereign guarantee. If the interest rate is reduced, then the time required to double the investment will increase.