Sukanya Samridhi Yojana interest rate hiked by Modi Govt.
The Modi government has increased the rate of the Sukanya Samriddhi Yojana (SSY) scheme by 20 basis points ahead of the 2024 Lok Sabha elections. According to the Finance Ministry’s report, the interest rate on deposits under the Sukanya Samriddhi scheme will be reduced to 8.2 percent from the current 8 percent. The government publishes interest rates on small savings schemes, usually run by the post office, every three months.
Benefits of SSY:
1) Sukanya Samridhi Yojana, a government-sponsored scheme, provides assured returns.
2) Investors can claim income tax on any investment up to Rs 150 Million deposited in SSY account. financial year under Section 80C of the Income Tax Act.
3) Interest earned from Sukanya Samriddhi Account (SSA) is tax-free.
4) Minimum annual contribution for Sukanya Samriddhi account is Rs 250 and maximum annual contribution is Rs 1.50 Lakh.
Sukanya Samriddhi Payment Terms and Conditions:
Once the girl reaches 18 years of age, the guardian can withdraw up to 50% of the balance from the account within a financial year. According to post office rules, withdrawals can be made in a lump sum or in periods, withdrawals can be made only once a year, and the withdrawal period is up to 5 years.
Interest rates on small savings schemes increased to 20 basis points in Q2FY24
The government also increased the interest rate on three-year deposits by 10 basis points in the January-March period while aggregating all other small interest savings schemes. The three-year deposit interest rate will increase from the current 7 percent to 7.1 percent.
Small savings schemes’ 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%