The government has recently raised the interest rates for the Sukanya Samriddhi Yojana by 40 paise for the period of April to June 2023. As a result, the new interest rate for this quarter is now set at 8%.
About Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana (SSY) is a government savings scheme for the girl child. It was launched in 2014 under the Beti Bachao Beti Padhao (BBBP) campaign. The objective of the scheme is to encourage people to save for the future of their girl child.
Key Features
- The account can be opened in the name of a girl child who is less than 10 years old.
- The account can be opened by the natural or legal guardian of a girl child who is less than 10 years old.
- The minimum annual deposit is Rs. 250 and the maximum is Rs. 1.5 lakh.
- If the minimum deposit is not made, a penalty of Rs. 50 will be imposed.
- The interest rate is between 7-9% per annum (compounded annually).
- The account matures after 21 years.
- The account can be opened in any post office or bank.
- The entire amount can be withdrawn after the account matures.
- Partial withdrawals are allowed after the girl child turns 18 years old.
- The interest earned on SSY is tax-free.
Sukanya Samriddhi Yojana is a good option for parents who want to save for their girl child’s future. The high-interest rate and tax benefits make it a very attractive investment option.
Benefits
- Tax benefits: The interest earned on SSY is tax-free under Section 80C of the Income Tax Act, 1961. This means that you can save tax on the interest earned on your investment.
- High-interest rate: The interest rate on Sukanya SSY is 7.6% per annum (compounded annually). This is a very high-interest rate, especially when compared to other savings schemes.
- Long maturity period: The SSY matures after 21 years. This gives you plenty of time to save for your girl child’s future.
- Partial withdrawals: You can withdraw up to 50% of the balance in the account after the girl child turns 18 years old. This can be used for her education or marriage.
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FAQs
Who can open a Sukanya Samriddhi Yojana account?
A Sukanya Samriddhi Yojana account can be opened by the natural or legal guardian of a girl child who is less than 10 years old. The account can be opened in any post office or bank.
What is the minimum and maximum deposit amount in Sukanya Samriddhi Yojana?
The minimum annual deposit in Sukanya Samriddhi Yojana is Rs. 250 and the maximum is Rs. 1.5 lakh. However, there is no maximum limit on the total amount that can be deposited in the account over the entire 21-year period.
What are the tax benefits of Sukanya Samriddhi Yojana?
The interest earned on Sukanya Samriddhi Yojana is tax-free under Section 80C of the Income Tax Act, 1961. This means that you can save tax on the interest earned on your investment.
