Modi Government Boosts Sukanya Samriddhi Yojana Returns Ahead of 2024 Election

Sukanya Samriddhi Yojana Rates Elevated for the Upcoming Quarter

The Indian government, led by Prime Minister Narendra Modi, has increased the interest rates for the Sukanya Samriddhi Yojana (SSY) scheme. This initiative comes just before the 2024 Lok Sabha elections. As per the recent finance ministry circular, the SSY deposit will now earn an interest rate of 8.2%, up from the previous 8%.

Benefits of SSY

  1. Assured Returns: Backed by the government, SSY guarantees returns.
  2. Tax Benefits: Investors can claim tax benefits on investments up to ₹1.5 lakh in an SSY account under Section 80C of the Income Tax Act.
  3. Tax-Free Interest: The interest generated through the Sukanya Samriddhi Account (SSA) remains tax-free.

Contribution and Withdrawal Rules

  • The minimum annual contribution is ₹250, while the maximum is ₹1.5 lakh in a financial year.
  • Once a girl reaches 18, guardians can withdraw up to 50% of the balance annually. Withdrawals can be made in one transaction or installments, limited to one withdrawal per year within a span of 5 years.

Interest Rates for Small Savings Schemes

Apart from SSY, the government has made adjustments to other schemes too. The three-year term deposit scheme’s rate has been raised by 10 basis points, while the rates for other small savings schemes remain unchanged.

Latest Interest Rates for January-March 2024

  • 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%

This move by the government aims to bolster savings opportunities for investors, particularly for young girls through the SSY scheme, ensuring better financial planning and security for the future.

Also Read:-

Leave a Reply