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Kisan Vikas Patra (KVP) vs SBI, PNB, HDFC Bank FDs: Where to Invest Your Money for Higher Profit?

Highest interest rates: Here is a comparison of interest rates and maturity value of bank FDs and the post office's Kisan Vikas Patra (KVP).

Aarushi Chadha
This is a comparison between bank FD interest rates and KVP maturity values.
This is a comparison between bank FD interest rates and KVP maturity values.

Do you want to make long-term investments that will produce certain returns? Are you unsure whether to invest in bank fixed deposits or the Kisan Vikas Patra (KVP)? The interest rates on fixed deposits have been rising at the biggest banks including SBI, HDFC Bank, and PNB, and the government has also raised KVP rates for the current quarter.

This is a comparison between bank FD interest rates and KVP maturity values.

Kisan Vikas Patra, one of the popular small savings plans provided by the Post Office, offers an interest rate of 7.2% from January through March 2023. The Union Government adjusts the interest rate every three months. After 10 years, the value of every investment deposited into a KVP account will double.

The minimum KVP amount is Rs 1,000, and there is no limit. The provided interest rate is 7.2% for the quarter from January to March, and the government changes rates quarterly. In ten years, the invested money doubles.

KVP Maturity Value

Since interest is compounded yearly, a regular citizen investing Rs 100,000 in KVP for 10 years will receive Rs 2,00000 at maturity.

KVP Taxation

Because KVP is not qualified for 80C deductions, the returns are totally taxable. Nevertheless, withdrawals made beyond the scheme's maturity are not subject to Tax Deducted at Source (TDS).


SBI provides 6.8% interest for a ten-year term. Deposits under Rs 2 crore are subject to these interest rates. The SBI FD calculator estimates that an investment of Rs 1 lakh over 10 years will return around Rs 1,90,555 lakh when interest is compounded quarterly.


For deposits under Rs 2 crore, HDFC Bank is offering 7% interest over 10 years. Your investment amount is Rs. 1,00,000, and the interest earned will be Rs. 1,00,160 on Mar. 23, 2033, according to the HDFC Bank FD calculator. There will be a maturity payment of Rs 2,00,160.


PNB provides a 6.5% return on deposits under Rs 2 crore for a 10-year term. Your investment totals Rs. 1,00,000.00, plus interest; as of Mar. 23, 2033, your maturity value will be Rs. 190556.

Ba​nk FD Taxation

PAN users must pay a 10% tax and non-PAN users must pay a 20% tax on interest if the interest on an FD is more than 40,000. When the annual interest was credited, this interest would be deducted as TDS (tax deducted at source).

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