A government-backed savings programme in India called the Sukanya Samriddhi Yojana aims to improve the financial security of young girls. It was introduced as part of the Beti Bachao, Beti Padhao initiative and comes with tax advantages and a high interest rate. For a girl under the age of ten, parents or guardians may start an account and make yearly contributions for the girl’s duration until she turns twenty-one. Through long-term savings and wealth growth, the programme seeks to empower girl children by providing financial security for marriage and schooling costs.
However, The Union Finance Ministry announced in a notification that, with the exception of the Sukanya Samriddhi Scheme and the 3-year time deposit, most programmes had interest rates that were the same. Here are some reforms that the Modi Government made before the elections of 2024:-
- The most recent updated list states that for the final quarter of the current financial 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.
The union also made few changes in other sectors of saving schemes. However, we must revise some of the benefits of the Sukanya Samriddhi Yojana here.
- The Sukanya Samriddhi Account (SSA) generates tax-free interest.
- The Sukanya Samriddhi Account has a minimum yearly deposit of ₹250 and a maximum commitment of ₹1.5 Lakh every financial year.
- Under Section 80C of the Income Tax Act, an investor may claim income tax savings on as much as ₹1.50 lakh invested in an SSY account in a single financial year.
