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.
Features of New Kisan Vikas Patra & VPBY :
# 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.