Children's Day 2023: Four benefits of investing in Sukanya Samriddhi Yojana (SSY)
Children's Day is celebrated as a mark of respect to the first Prime Minister of independent India. Jawaharlal Nehru was fondly called ‘Chacha Nehru’. To celebrate the day, every year, several activities are organised for students in schools nationwide.
On this day, let's look at the benefits of the Sukanya Samriddhi Yojana (SSY), the popular girl-child saving scheme. The government offers nine types of small saving schemes including SSY. The interest rates on these saving schemes are revised every quarter.
The interest rate on small savings schemes was last revised on 30 September. Sukanya Samriddhi Yojana is a savings scheme designed to improve the lives of girls in the nation. SSA will continue to give an interest rate of 8 per cent per year for the quarter ending December 31, 2023.
This interest rate is calculated on an annual basis and is compounded annually. The available balance in the account between the fifth day and the end of the month will be used to determine interest for the month, and interest will be issued to the account after each fiscal year. 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. 1) Being a government-backed scheme, the Sukanya Samridhi Yojana offers guaranteed returns. 2) Sukanya Samriddhi Yojana (SSY) offers a competitive interest rate of 8 per cent.
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