new delhi the government on tuesday relaunched kisan vikas patras kvps and offered to double your investment in 100 months as it looked to boost savings in the economy and step up investment the revamped scheme offers an annualized return of 87 but requires you to pay tax on the interest that accrues on your investment as a result some experts believe that the real rate of return may be negative during periods when the rate of inflation is high in contrast public provident fund offers a similar interest rate but have a 15year term but given that it is a completely taxfree product the actual returns are much higher especially for those in the 30 bracket on the flip side ppf investment is capped at rs 15 lakh while there is no such cap on kvps which come in denomination of rs 1000 5000 10000 and 50000 while the interest rate is fixed ppf also comes with the risk of interest rate changing during the 15 year term even bank fixed deposits taxfree for more than fiveyear maturity offer rates that are similar to ppf for instance sbi offers 85 on deposits with 510 year maturity 875 for senior citizens it depends on what your needs are to me a bigger risk is holding it kvp certificate physically said personal finance expert gaurav mashruwala for the government however kvp could prove to be a money spinner and in the process boost savings in the economy between 1998 and november 2011 kvp generated up to 29 of the gross collections finance minister arun jaitley said kvp will be a good investment option especially for the poor and help keep them away from ponzi schemes in the last two to three years savings rate in country has declined from a record high of 368 to below 30 due to slowdown in the economy it is therefore necessary to encourage people to save more jaitley said while launching the revamped product kvp would serve two purposes he said adding one it would help poor gullible investors to channelize their savings towards a trusted government scheme instead of some ponzi schemes where hard earned savings disappear secondly there is an urgent need to raise savings in the countrythese savings are then used for nation building such saving instrument not only earns interest but helps in development of the country he said