Children’s Day 2023: Every year, on November 14, Children’s Day is celebrated as a mark of respect to the first Prime Minister of independent India. Jawaharlal Nehru was fondly called ‘Chacha Nehru’. To celebrate the day, every year, several activities are organised for students in schools nationwide.
On this day, let’s look at the benefits of the Sukanya Samriddhi Yojana (SSY), the popular girl-child saving scheme. The government offers nine types of small saving schemes including SSY. The interest rates on these saving schemes are revised every quarter. The interest rate on small savings schemes was last revised on 30 September.
SSY latest interest rates
Sukanya Samriddhi Yojana is a savings scheme designed to improve the lives of girls in the nation.
SSA will continue to give an interest rate of 8 per cent per year for the quarter ending December 31, 2023. This interest rate is calculated on an annual basis and is compounded annually. The available balance in the account between the fifth day and the end of the month will be used to determine interest for the month, and interest will be issued to the account after each fiscal year.
Sukanya Samriddhi account withdrawal and maturity rules
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.
Benefits of SSY
1) Being a government-backed scheme, the Sukanya Samridhi Yojana offers guaranteed returns.
2) Sukanya Samriddhi Yojana (SSY) offers a competitive interest rate of 8 per cent.
3) 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. 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.
Recently, the government has relaxed the norms for various small savings schemes, including the Public Provident Fund (PPF), National Savings Time Deposit Scheme, and Senior Citizen’s Savings Scheme.
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Updated: 14 Nov 2023, 01:14 PM IST