POTD, Sukanya Samriddhi Yojana interest rates hiked; investors who will get higher rates on these small saving schemes The government assesses the interest rates of small savings schemes on a quarterly basis
The government has hiked the interest rates for Sukanya Samriddhi Yojana by 20 basis points for this quarter and it has rates hiked by 10 basis points (bps) on select Post Office time deposits for the January-March 2024 quarter.The government regularly assesses the interest rates of small savings schemes on a quarterly basis.
Sukanya Samriddhi, 3-year post office FD rates hiked up to 20 bps; check latest small savings schemes interest rates
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The rate of interest as specified in the table below will be applicable to the deposit made on or after the 1st day of January 2024 under the Scheme.
According to a Ministry of Finance notification dated February 12, 2024, “in sub-paragraph 1(E), for the words, figures and letters, “on or after 1st day of July, 2023”, the words, figures, letters and brackets “between the 1st day of July, 2023 and 31st day of December, 2023 (both days inclusive)” shall be substituted;”
The government increased the interest rate on three-year time deposits by ten basis points (bps), from 7% to 7.10%. These prices are effective from January 1, 2024.
Category of accountRate of interestOne-year6.9Two-years7Three-years7.1Five-years7.5”
Features of Post Office Time Deposit
Interest payable annually but calculated quarterly.The annual interest may be credited to the savings account of the account holder by submitting application.The investment under 5 year TD qualifies for the benefit of section 80C of Income Tax Act, 1961.No deposit shall be withdrawn before the expiry of six months from the date of deposit.TD account can be closed prematurely by submitting prescribed application form with pass book at concerned Post Office. Any number of account can be opened.Minimum Rs 1000/- and in multiple of 100. No maximum limit.Also read: 3-year POTD interest rate hiked; FD rates of SBI vs ICICI Bank vs HDFC Bank vs PNB
Sukanya Samriddhi Account (Amendment) Scheme, 2024
The government recently raised interest rates on the Sukanya Samriddhi Yojana (SSY) for the January-March 2024 quarter by up to 20 basis points. The rate presently stands at 8.2%.According to the Ministry of Finance, “(a) in sub-paragraph (1B), for the words, figures and letters, “on or after the 1st day of April, 2023”, the following words, figures, letters and brackets “between 1st day of April, 2023 to 31 st day of December, 2023 (both days inclusive)” shall be substituted; (b) after sub-paragraph (1B), the following sub-paragraph shall be inserted, namely:- “(1C) The deposits made in the account on or after the 1st day of January, 2024 and the balances at the credit of the account shall earn interest at the rate of 8.2 per cent. per annum.” It will come into force from January 1 2024.
Features of SSY
Rate of interest 8.2% Per Annum (with effect from 01-01-2024 ),calculated on yearly basis ,Yearly compounded.Minimum INR. 250/-and Maximum Rs. 1,50,000/- in a financial year.Subsequent deposit in multiple of INR 50/- Deposits can be made in lump-sum No limit on number of deposits either in a month or in a Financial year. Deposit can be made maximum up to completion of 15 years from the date of opening.Deposits qualify for deduction under section 80C of Income Tax Act.Account will be operated by the guardian till the girl child attains the age of majority (i.e. 18 years).Withdrawal may be taken from account after girl child attains age of 18 or passed 10th standard. withdrawal may be taken up to 50% of balance available at the end of preceding F.Y.Also read: Sukanya Samriddhi Yojana interest rate hiked for Jan-March quarter; check latest SSY rate
This story originally appeared on: India Times - Author:Faqs of Insurances
