Table of Contents
Introduction
The Narendra Modi government has raised the interest rates on the Sukanya Samriddhi Yojana (SSY)scheme by 20 basis points for the January-March quarter, ahead of Lok Sabha polls 2024.
Finance Ministery circular
According to a finance ministry circular, the deposit under the Sukanya Samriddhi scheme would attract an interest rate of 8.2 percent from the existing 8 percent. The government notifies the interest rate on small savings schemes, majorly operated by post offices, every quarter
Benefits of Sukanya Samriddhi Scheme
- The Sukanya Samridhi Yojana offers guaranteed returns as a government-backed scheme.
- An investor can claim income tax benefits on up to ₹1.50 lakh invested in an SSY account in the single financial year under Section 80C of the Income Tax Act.
- The interest generated through the Sukanya Samriddhi Account (SSA) is tax-free.
- The minimum annual contribution to the Sukanya Samriddhi Account is ₹250 and the maximum contribution is ₹1.5 Lakh in a financial year.
Withdrawal and Maturity rules
After a girl reaches 18, guardians can withdraw money from the account up to 50% of the balance in a financial year. According to the regulations set by the Department of Posts, withdrawals can be accomplished in a single transaction or installments, with a maximum of one withdrawal per year with up to a limit of 5 years.
Also, Read SUKANYA SAMRIDDHI SCHEME- 2022
Interest rates hiked up to 20 bps for Q4 FY24
The government has also hiked the three-year term deposit scheme by 10 basis points for the January-March quarter while retaining the rates for all other small savings schemes. The 3-year term deposit would now fetch 7.1 percent from the current 7 percent.
Latest interest rates for the January- March 2024 quarter
PPF – 7.1%
SCSS – 8.2%
Sukanya Yojana – 8.2%
NSC – 7.7%
PO-Monthly Income Scheme – 7.4%
Kisan Vikas Patra – 7.5%
1-Year Deposit – 6.9%
2-Year Deposit – 7.0%
3-Year Deposit – 7.1%
5-Year Deposit – 7.5%
5-Year RD – 6.7%