Modi Government Boosts Sukanya Samriddhi Yojana Rates Ahead of 2024 Elections

Empowering Families: A Closer Look at the Enhanced Benefits and Interest Rates

In a strategic move ahead of the anticipated Lok Sabha elections in 2024, the Narendra Modi government has announced a 20 basis points increase in the interest rates for the Sukanya Samriddhi Yojana (SSY) scheme. This boost, effective for the January-March quarter, reinforces the government's commitment to

empowering families and securing the financial future of girl children.

Understanding Sukanya Samriddhi Yojana

The Sukanya Samriddhi Yojana, a government-backed savings scheme, has long been recognized for its guaranteed returns and tax benefits. The recent interest rate hike takes the rate from 8% to a more attractive 8.2%, making it an even more compelling option for investors. This move aligns with the government's ongoing efforts to promote financial inclusion and secure the future of young girls in the country.

Key Benefits of Sukanya Samriddhi Yojana

1. Guaranteed Returns: The SSY provides investors with the assurance of guaranteed returns, offering a stable and secure investment avenue.

2. Tax Benefits: Investors can avail themselves of income tax benefits on investments up to ₹1.50 lakh in an SSY account within a single financial year under Section 80C of the Income Tax Act.

3. Tax-Free Interest: The interest generated through the Sukanya Samriddhi Account is entirely tax-free, providing a unique advantage for long-term savings.

4. Affordable Contributions: With a minimum annual contribution of ₹250 and a maximum of ₹1.5 lakh in a financial year, the SSY is accessible to a wide range of income groups.

Withdrawal and Maturity Rules

Once a girl reaches the age of 18, guardians can withdraw up to 50% of the account balance in a financial year. The flexibility in withdrawal options, either in a single transaction or installments, aligns with the account holder's financial needs.

Overall Small Savings Scheme Adjustments

Apart from the SSY, the government has also made adjustments to other small savings schemes. The three-year term deposit scheme sees a 10 basis points increase, now offering a rate of 7.1%. However, the rates for other schemes remain unchanged.

Latest Interest Rates for Small Savings Schemes (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%

The government's proactive measure in enhancing the interest rates for the Sukanya Samriddhi Yojana reflects its commitment to social and economic development. Families can now leverage this opportunity to secure the financial future of their daughters while enjoying the dual benefits of guaranteed returns and tax advantages. As we move into the new year, these positive adjustments provide families with an additional reason to consider the Sukanya Samriddhi Yojana for long-term financial planning.