Kisan Vikas Patra (KVP) interest rate from October 1: Doubling period stays at 9 years 7 months

Your money invested in the Kisan Vikas Patra (KVP) during the October-December 2026 quarter will double in 115 months. The Finance Ministry on Wednesday, September 30, retained the scheme's interest rate at 7.5%. KVP rate has remained unchanged for 14 quarters since since April 1, 2023.

All small savings rates for October-December 2026

KVP scheme details

The KVP is a certificate-based scheme with a minimum investment limit of ₹1,000 and no maximum limit. KVPs can be bought singly or jointly, and on behalf of minors. They can also be pledged as loan collateral.

Premature encashment of KVP is allowed after two years and six months. However, there is no Section 80C benefit and the interest is fully taxable at slab rate.

KVP rate history

Government data shows the KVP paid 6.9% between 2020 and 2022, with certificates then maturing in 124 months. The rate was raised to 7.2% in January 2023 and it is 7.5% from April 2023, bringing the doubling period down to 115 months.

As per the Shyamala Gopinath Committee formula, the KVP is benchmarked against a comparable maturity with the standard 25-basis-point spread. The 10-year G-sec is the closest match to its 115-month tenure.

The 10-year G-sec averaged roughly 6.85-6.9% over the July-September quarter, implying a formula rate of about 7.1% against the 7.5% paid.

The KVP rate is locked at the time of purchase. This means, a certificate bought during the October-December quarter will double in 115 months regardless of what the next several notifications say. Any future revision would only change the doubling period on fresh certificates.