The Sukanya Samridhi Yojana resulted in higher interest rates. In anticipation of the 2024 Lok Sabha elections, the Narendra Modi administration increased interest rates on the Sukanya Samriddhi Yojana (SSY) scheme by 20 basis points for the January–March quarter.
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A circular from the finance ministry stated that the interest rate on deposits made under the Sukanya Samriddhi scheme would increase from the existing 8 percent to 8.2 percent. Every quarter, the government releases the interest rate on small savings programmes, many of which are run by post offices.
Advantages of SSY
- Under the government-sponsored Sukanya Samridhi Yojana, guaranteed returns are provided
- Under Section 80C of the Income Tax Act, an investor may claim income tax benefits on up to ₹1.50 lakh invested in an SSY account in a single financial year.
- There is no tax on interest deposited into the Sukanya Samriddhi Account (SSA).
- The Sukanya Samriddhi Account requires a minimum deposit of ₹250 and a maximum commitment of ₹1.5 lakh every financial year.
Rules for the maturity and withdrawal of Sukanya Samriddhi Yojana accounts
A girl’s guardians may withdraw up to 50% of her account balance in the same fiscal year after she reaches 18. Withdrawals may be made in full or in installments, once a year for a maximum of five years, in accordance with Department of Posts regulations.
Interest rates on small savings plans increased by 20 basis points in Q4 of FY24.
For the January–March quarter, the government maintained the interest rates on all other modest savings plans but raised them by 10 basis points on the three-year term deposit plan. Instead of 7%, the three-year term deposit’s current yield is 7.1%.
The present interest rates for small-savings plans for the quarter ending in January–March of 2024
- 7.1% PPF
- SCSS: 8%
- About 8.2% of the total comes from the Sukanya Yojana.
- 7.7% NSC
- In reference to the PO-Monthly Income Plan, 7.4%
7.5% is Kisan Vikas Patra.
- 6.9% annual growth
- Annual Savings: 7.0%
- 7.1% Annual Growth Rate
- Deposit for five years: 7.5%
- Year RD: 6.7%
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