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

  1. The Sukanya Samridhi Yojana offers guaranteed returns as a government-backed scheme.
  2. 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.
  3. The interest generated through the Sukanya Samriddhi Account (SSA) is tax-free.
  4. The minimum annual contribution to the Sukanya Samriddhi Account is ₹250 and the maximum contribution is ₹1.5 Lakh in a financial year.
interest rate

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.


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%

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