NEW DELHI: In a move ahead of the 2024 Lok Sabha election, the Narendra Modi-led government has augmented the interest rates offered by the Sukanya Samriddhi Yojana (SSY) scheme. The interest rates have been raised by 20 basis points for the January-March quarter. This decision, outlined in a recent finance ministry circular, escalates the interest rate for deposits under the Sukanya Samriddhi scheme from the existing 8% to 8.2%. The government regularly notifies the interest rates applicable to small savings schemes, primarily managed through post offices, on a quarterly basis.
Benefits of the SSY Scheme:
Government-backed, the Sukanya Samridhi Yojana assures guaranteed returns.
Investors can claim income tax benefits on investments up to ₹1.50 lakh in an SSY account within a financial year under Section 80C of the Income Tax Act.
The interest earned through the Sukanya Samriddhi Account (SSA) remains tax-free.
Key SSY Account Details:
The minimum annual contribution to the Sukanya Samriddhi Account stands at ₹250, while the maximum allowed contribution is ₹1.5 lakh in a financial year.
Withdrawal and Maturity Rules for Sukanya Samriddhi Account:
Once a girl reaches 18 years of age, guardians can withdraw up to 50% of the account balance in a financial year. Withdrawals, according to the Department of Posts regulations, can be made in a single transaction or in installments, limited to one withdrawal per year, up to a maximum of 5 years.
Adjustment in Interest Rates for Small Savings Schemes:
The government has not only increased the interest rates for the three-year term deposit scheme by 10 basis points for the January-March quarter but has maintained the rates for all other small savings schemes. Consequently, the 3-year term deposit will now yield 7.1%, up from the existing 7%.
Latest Interest Rates for Small Savings Schemes (January-March 2024 Quarter):
To sum up, the Narendra Modi-led government has increased the interest rates for the Sukanya Samridhi Yojana and certain other small savings schemes just ahead of the 2024 Lok Sabha election. These adjustments aim to provide improved financial benefits to investors and beneficiaries under these schemes, offering higher returns on deposits and tax advantages, particularly for the SSY account holders.
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