Sukanya Samriddhi Yojana interest rate increased by 0.2%
Now it is 8.2%, also 0.1% profit on three year time deposit. The government on Friday, December 29, announced the interest rates on small savings schemes for the January-March 2024 quarter. Sukanya Samriddhi Yojana has increased by 0.20% and 3 year time deposit rates by 0.10%. The rates of other schemes have not been changed.
Bhavika Nandwana
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Earlier on September 29, the government had increased the rates on RD by 0.20% for October-December. Earlier the interest rate of Sukanya Scheme was 8% and the interest rate of three year time deposit was 7%. This is the sixth consecutive quarter when the rates of these schemes have increased.
The Finance Ministry had not changed the interest rates of small savings schemes for nine consecutive quarters. After this, it has started increasing from October-December 2022.
SSY scheme was launched on 22 January 2015
Sukanya Samriddhi Yojana was launched by Prime Minister Narendra Modi on 22 January 2015 as a part of the Beti Bachao Beti Padhao campaign. This scheme is to meet the education and marriage expenses of the daughter.
The age of the daughter should be less than 10 years. Only one account is allowed for a daughter. A family can open only two SSY accounts. SSY account can be opened in bank or post office.
The minimum investment in this is ₹250 per year. Maximum investment is ₹1,50,000 per year. Maturity period is 21 years. For this, daughter's birth certificate, photo ID of parents or legal guardian and address proof will have to be given.
Interest rates are reviewed every quarter
The interest rates of Small Savings Scheme are reviewed every quarter. The formula for determining their interest rates was given by the Shyamala Gopinath Committee. The committee had suggested that the interest rates of these schemes should be 0.25-1.00% higher than the yield of government bonds of similar maturity.
These schemes are the major source of household savings
Small Savings Scheme is the major source of household savings in India and comprises 12 instruments. In these schemes, depositors get fixed interest on their money. Collections from all small savings schemes are deposited in the National Small Savings Fund (NSSF). Small savings schemes have emerged as a source of financing government deficit.
Classification
Small savings instruments can be divided into three parts:
- Postal Deposit: Saving Account, Recurring Deposit, Time Deposit and Monthly Income Scheme
- Saving Certificate: National Small Savings Certificate (NSC) and Kisan Vikas Patra (KVP)
- Social Security Schemes: Sukanya Samriddhi Yojana, Public Provident Fund (PPF) and Senior Citizens Savings Scheme (SCSS)
