The interest rate on the Sukanya Samridhi Yojana has been raised: The Narendra Modi administration has increased interest rates on the Sukanya Samriddhi Yojana (SSY) plan by 20 basis points for the January-March quarter, ahead of the 2024 Lok Sabha elections. According to a finance ministry circular, deposits under the Sukanya Samriddhi program will earn 8.2 percent instead of the current 8%. Every quarter, the government announces the interest rate on modest savings plans, which are mostly run by post offices.
Benefits of SSY
1) The Sukanya Samridhi Yojana, being a government-backed initiative, provides guaranteed returns.
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2) Under Section 80C of the Income Tax Act, an investor can claim income tax advantages on up to 1.50 lakh invested in an SSY account in a single fiscal year.
3)The Sukanya Samriddhi Account (SSA) generates tax-free interest.
4) In a fiscal year, the lowest yearly contribution to the Sukanya Samriddhi Account is $250 and the maximum contribution is 1.5 lakh.
Sukanya Samriddhi withdrawal and maturity policies
When a girl reaches the age of 18, her guardians can take up to 50% of the account balance in a fiscal year. According to the Department of Posts regulations, withdrawals can be made in a single transaction or in installments, with a maximum of one withdrawal per year and a maximum of five years.
Interest rates on small savings accounts were raised by up to 20 basis points in Q4FY24.
The government has also increased the three-year term deposit program by 10 basis points for the January-March quarter, while keeping all other modest savings schemes unchanged. The 3-year term deposit is now worth 7.1 percent, up from 7 percent.
The most recent interest rates for small savings programs 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%
