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Business News/ Money / Personal Finance/  Modi govt raises Sukanya Samridhi Yojana interest rate ahead of Lok Sabha election 2024. Check latest SSY rates here
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Modi govt raises Sukanya Samridhi Yojana interest rate ahead of Lok Sabha election 2024. Check latest SSY rates here

The Sukanya Samriddhi Yojana scheme raised interest rates by 20 basis points for the January-March quarter.

Sukanya Samridhi Yojana: The interest generated through the Sukanya Samriddhi Account (SSA) is tax-free. (Pixabay)Premium
Sukanya Samridhi Yojana: The interest generated through the Sukanya Samriddhi Account (SSA) is tax-free. (Pixabay)

Sukanya Samridhi Yojana interest rate hiked: 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. According to a finance ministry circular, the deposit under the Sukanya Samriddhi scheme would attract an interest rate of 8.2 per cent from the existing 8 per cent. The government notifies the interest rate on small savings schemes, majorly operated by post offices, every quarter.

Benefits of SSY

1) Being a government-backed scheme, the Sukanya Samridhi Yojana offers guaranteed returns.

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.

Sukanya Samriddhi account withdrawal and maturity rules

After a girl reaches 18 years of age, 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.

Small savings schemes' interest rates hiked up to 20 bps for Q4FY24

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 per cent from the current 7 per cent.

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%

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ABOUT THE AUTHOR
Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 30 Dec 2023, 08:23 AM IST
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