Sukanya Samriddhi Yojana: The Narendra Modi-led government has hiked the interest rates for ‘Sukanya Samriddhi Yojana’ by 20 basis points. The Union Finance Ministry said that the deposit under the Sukanya Samriddhi Yojana scheme will now fetch an interest rate of 8.2 per cent instead of 8 per cent.
OVERVIEW
- The most recent updated list states that for the final quarter of the current fiscal year, the interest rate on the Sukanya Samriddhi Scheme will be 8.2%, and for the 3-year TD, it will be 7.1%.
- Prior to this, the interest rates on the 3-year TD and Sukanya Samriddhi Scheme were 7.1% and 8.0%, respectively.
- For longer than three years, the PPF rates remained unaltered.
Sukanya Samriddhi Scheme: For the January–March 2024 quarter, the Center increased the interest rates on a few small savings plans, including the Sukanya Samriddhi Scheme, a 3-year Time Deposit. The Union Finance Ministry announced in a notification that, with the exception of the Sukanya Samriddhi Scheme and the 3-year time deposit, most schemes had interest rates that were the same.
The most recent updated list states that for the final quarter of the current fiscal year, the interest rate on the Sukanya Samriddhi Scheme will be 8.2%, and for the 3-year TD, it will be 7.1%. Prior to this, the interest rates on the 3-year TD and Sukanya Samriddhi Scheme were 7.1% and 8.0%, respectively.
For longer than three years, the PPF rates remained unaltered. The most recent adjustment was made in April and June of 2020, when it was reduced from 7.9 percent to 7.1 percent.
With the exception of a slight increase in five-year recurring deposit rates, the Center maintained small savings interest rates at the same level for the October–December quarter in its most recent announcement.
Prior to the revision made today, small savings plans had interest rates ranging from 4% (post office savings deposits) to
Interest rates from January to March of 2024
4% for savings deposits
6.9% of one-year post office time deposits
Post Office Time Deposits for Two Years: 7.0%
Post Office Time Deposits for Three Years: 7.1%
Post Office Time Deposits for Five Years: 7.5%
5.-Year Recurring Deposits: 6.7% (previously 6.5%).
7.7% of National Savings Certificates (NSCs)
7.5% of Kisan Vikas Patra will mature in 115 months.
7.1% is the Public Provident Fund.
8.2 percent of Sukanya Samriddhi Accounts
Senior Citizens Savings Program: 8.2%
7.4% of the monthly income is in the account.
Interest rates for the quarter ending in October–December 2023
4% for savings deposits
6.9% of one-year post office time deposits
Post Office Time Deposits for Two Years: 7.0%
Post Office Time Deposits for Three Years: 7%
Post Office Time Deposits for Five Years: 7.5%
5.-Year Recurring Deposits: 6.7% (previously 6.5%).
7.7% of National Savings Certificates (NSCs)
7.5% of Kisan Vikas Patra will mature in 115 months.
7.1% is the Public Provident Fund.
Account Sukanya Samriddhi: 8.0 percent
Senior Citizens Savings Program: 8.2%
7.4% of the monthly income is in the account.
There are three types of small savings plans: monthly income plans, social security plans, and savings deposits. The interest rates provided by the government on the majority of small savings plans, such as Post Office Fixed Deposits, are already competitive with those of bank term deposits.
Small savings plans are excellent tools for reducing personal income taxes. By investing in PPF, SCSS, NSC, SSY, and the 5-Year Post Office Time Deposit Scheme, individuals can deduct up to Rs 1.5 lakh annually from their taxable income under Section 80C of the Income Tax Act.
Based on a formula developed by a committee led by former Reserve Bank of India Governor Shyamala Gopinath, the interest rate on small savings instruments like the National Savings Certificate, Sukanya Samriddhi Account Scheme, Kisan Vikas Patra, and Public Provident Fund is revised every quarter in line with the market rate for the 10-year government security. The committee’s recommendation was for interest rates on various schemes to be 25–100 basis points higher than the yields on government bonds with comparable maturities.
Prior to now, the NDA government asserted that the interest rates on a range of Small Savings Plans were superior to those on fixed deposit plans provided by both public and private banks.
