The Narendra Modi government has increased the interest rates on the Sukanya Samriddhi Yojana (SSY) scheme by 20 basis points for the January-March quarter, strategically timed ahead of the Lok Sabha polls in 2024.
As per a finance ministry circular, the Sukanya Samriddhi scheme’s deposits will now attract an interest rate of 8.2%, up from the existing 8%. The government routinely notifies interest rates for small savings schemes, predominantly managed by post offices, every quarter.
Key Benefits of Sukanya Samriddhi Yojana (SSY):
1. **Government-backed with Guaranteed Returns:** SSY offers guaranteed returns as a government-backed scheme.
2. **Income Tax Benefits:** Investors can claim income tax benefits on up to ₹1.50 lakh invested in an SSY account within a single financial year under Section 80C of the Income Tax Act.
3. **Tax-Free Interest:** The interest generated through the Sukanya Samriddhi Account (SSA) is tax-free.
4. **Contributions:** 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 years of age, guardians can withdraw up to 50% of the balance in the account in a financial year. Withdrawals can be done in a single transaction or installments, with a maximum of one withdrawal per year and up to a limit of 5 years, according to the regulations set by the Department of Posts.
Apart from SSY, the government has also raised the interest rate for the three-year term deposit scheme by 10 basis points for the January-March quarter while maintaining rates for other small savings schemes. The new interest rates for various small savings schemes for the January-March 2024 quarter are as follows:
– PPF (Public Provident Fund) – 7.1%
– SCSS (Senior Citizens Savings Scheme) – 8.2%
– Sukanya Yojana – 8.2%
– NSC (National Savings Certificate) – 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 (Recurring Deposit) – 6.7%
