Modi govt raises Sukanya Samridhi Yojana interest rate ahead of Lok Sabha election 2024. Check latest SSY rates here

livemint.com:

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.

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. 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.

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. 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