New Kisan Vikas Patra (Vs) Varishtha Pension Bima Yojana (2014)

A few days ago, I had published an article on new Kisan Vikas Patra. I had received requests from many investors, Friends’ parents and blog visitors to compare the features of Kisan Vikas Patra (2014) with that of Varishtha Pension Bima Yojana (2014) scheme. KVP is a small savings scheme and VPBY is a pension plan. So, it may not be prudent enough to compare both the schemes.

However, I have tried to  list some of the important  features of both the schemes as below. Kindly go through them before before buying any of these schemes. If you need more information or details on KVP / Varishtha Pension Plan then kindly leave your query in Comments section.

(You may visit my posts on  ” New Kisan Vikas Patra ”  and ” Varishtha Pension Bima Yojana ” for more details).

Features of New Kisan Vikas Patra & VPBY :

(Click on the image to open it in new browser window)New Kisan Vikas Patra KVP Vs VPBY  (2014)

# Return on KVP Investment is 8.7% if your taxable income is nil. For 10%, 20% and 30% tax brackets, the returns are 7.8%, 6.91% and 6.01% respectively.

* The VPBY policy can be surrendered after completion of 15 years. The Surrender Value payable will be the refund of Purchase Price. Under exceptional circumstances, if the pensioner requires money for the treatment of any critical/terminal illness of self or spouse then the policy can be surrendered before the completion of 15 years.The Surrender Value payable shall be 98% of Purchase Price.

  • Swati says:

    Hello sir
    Can u tell me abt vpby actually I’m confused
    Hw to apply nd Whts d processor …

  • Trishito says:

    VPBY is an absolute NO.
    You can earn way more by investing the amount in an FD.
    All Pension Schemes including Govt. ones are a trap to soak your hard earned money & pay you a fraction of the actuall interest on the name of pension.

    • Dear Trishito,
      I prefer to build my own portfolio with investments across various Asset categories for my Retirement Goal.
      For long-term goals, it is advisable to invest in risk-oriented financial products to achieve positive inflation-adjusted/tax-adjusted returns.

  • vijay says:

    sir,
    what are the current interest rate on KVP & VPBY .

    Is VPBY another name of senior citizen saving scheme.?

  • Siddhartha says:

    nice comparison…….

  • srinivasan says:

    excellent

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