In preparation for the upcoming Lok Sabha polls in 2024, the Narendra Modi government has announced a 20 basis points increase in the interest rates for the Sukanya Samriddhi Yojana (SSY) scheme during the January-March quarter. As per the finance ministry circular, the new interest rate for deposits under the Sukanya Samriddhi scheme will be 8.2%, up from the previous 8%. The government regularly notifies interest rates for small savings schemes, predominantly operated by post offices, on a quarterly basis.
The Sukanya Samridhi Yojana, being a government-backed initiative, ensures guaranteed returns for investors. Under Section 80C of the Income Tax Act, individuals can claim income tax benefits on investments of up to ₹1.50 lakh in an SSY account within a single financial year.
Moreover, the interest accrued through the Sukanya Samriddhi Account (SSA) remains tax-free. The minimum annual contribution to the Sukanya Samriddhi Account is ₹250, with a maximum limit of ₹1.5 lakh per financial year.
Upon reaching 18 years of age, guardians can withdraw up to 50% of the balance from the account in a financial year. The Department of Posts stipulates regulations for withdrawals, allowing them to be executed either in a single transaction or in installments, with a maximum of one withdrawal per year within a limit of 5 years.
Additionally, the government has raised the interest rates for the three-year term deposit scheme by 10 basis points for the January-March quarter. The new interest rate for the 3-year term deposit stands at 7.1%, up from the previous 7%. Other small savings schemes, however, retain their existing interest rates.
Here is a summary of the revised interest rates for various small savings schemes:
- 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%