The Finance Minister wants Indians to save more. The press release from the fin ministry says:
The Finance Minister said that in last few years due to slower rate of economic growth, the rate of domestic savings had come below 30 % while it had once touched the peak of 36.8%. He stressed the urgent need for raising the domestic rate of savings.
This has led them to relaunch the “Kisan Vikas Patra” (translates to “Farmer Benefit Bond”). These will be issued by the Postal department. The product is simple, and the gazette notification states:
- You buy them for Rs. 1000 (minimum), and no maximum exists (each certificate has a max value of Rs. 50,000)
- Your money doubles in 100 months (8 years, 4 months) – the annualized rate of return is 8.7%. (this is the maturity of the KVP)
- You can pledge the certificates for a loan
- You can exit partially after 2.5 years, rates […]