Latest Sukanya Samriddhi Yojana Interest Rate: How Much Can You Earn?

Aug 04, 2023 / Reading Time: Approx. 3.5 mins

Listen to Latest Sukanya Samriddhi Yojana Interest Rate: How Much Can You Earn?

00:00 00:00

Latest Sukanya Samriddhi Yojana Interest Rate: How Much Can You Earn?

Launched in 2015 by the honourable Prime Minister Narendra Modi, Sukanya Samriddhi Yojana is a government-endorsed social scheme that was developed as a part of the 'Beti Bachao, Beti Padhao' initiative. This plan enables a parent or a guardian to open a Sukanya Samriddhi Yojana account in the name of a girl child aged ten or under, aiming to accumulate funds for her future needs. This article elucidates the scheme in detail and helps you understand the Sukanya Samriddhi Yojana interest rates.

What Is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana (SSY) is a government-backed saving scheme designed for the equal rights and betterment of the girl child in India. The scheme aims to financially secure a girl child's future by helping the parents build a corpus for their child's future goals, such as higher education, wedding, etc.

The government has set Sukanya Samriddhi Yojana eligibility criteria as follows:

  • This program exclusively caters to girls residing in India

  • Girls must be under the age of ten at the time of opening the account

  • Up to two girls from the same family can be registered in this scheme. A third account can be opened for twin girls within a family

  • It is mandatory to provide proof of age for the children during the account opening process

To open a SSY account, a minimum deposit of Rs 250 is required. The upper limit for deposits in this account is capped at Rs 1.5 lakh per account in a financial year. There are no constraints on the number of deposits within a month or a financial year. Failure to maintain a minimum deposit of Rs 250 incurs a penalty of Rs 50 to keep the account active.

A Sukanya Samriddhi Yojana account has a lock-in period of 21 years. Deposits can be made monthly or annually for the initial 15 years from account opening. While investments cannot be made beyond 15 years, the account continues to accumulate interest for the subsequent six years, reaching maturity after 21 years.

The Sukanya Samriddhi Yojana maturity proceeds are directed to the girl child and not used by the parent or guardian for personal financial purposes. Upon turning 18, the girl is eligible for a single early withdrawal under specific circumstances, limited to 50% of the remaining balance in the SSY account.

What Is the Latest Sukanya Samriddhi Yojana Interest Rate?

The Sukanya Samriddhi Yojana interest rate is determined by the government, considering the returns from government securities. This interest rate undergoes assessment every three months and remains constant once set. As of 2023, the annual interest rate for the Sukanya Samriddhi Account stands at 8%. Here are the scheme interest rates since inception:

Period Rate of Interest (%) p.a.
03.12.2014 to 31.03.2015 9.1
01.04.2015 to 31.03.2016 9.2
01.04.2016 to 30.09.2016 8.6
01.10.2016 to 31.03.2017 8.5
01.04.2017 to 30.06.2017 8.4
01.07.2017 to 31.12.2017 8.3
01.01.2018 to 30.09.2018 8.1
01.10.2018 to 30.06.2019 8.5
01.07.2019 to 31.03.2020 8.4
01.04.2020 to 31.03.2023 7.6
01.04.2023 to 30.09.2023 8
 

How Does the Calculation Work?

The government can adjust the SSY interest rates every three months. However, you can estimate the potential maturity amount by considering the latest Sukanya Samriddhi Yojana interest rates using the different Sukanya Samriddhi Yojana calculators available online.

Here's an example for your easy understanding.

Suppose you wish to invest Rs 1,00,000 annually for your two-year-old daughter's future. Opting for the SSY scheme at the present 8% annual interest rate, you can start a 15-year investment journey. This would accumulate to a total investment of Rs 15 lakhs over the span of 15 years.

Nonetheless, the scheme's maturity period extends to 21 years. This means that your investment duration covers 15 years, after which you continue to receive interest on your deposited sum for an additional 6 years.

Ultimately, upon the completion of the full 21-year term, you can withdraw the maturity amount. In our example, your accrued interest amount would be a total of Rs 29,89,690. Assuming a consistent 8% annual interest rate throughout, the final sum would be Rs 44,89,690.

Annual Investment Amount Rs 1,00,000
Investment Tenure 15 years
Total Investment in 15 Years Rs 15,00,000
Latest Interest Rate 8% p.a.
Maturity Tenure 21 years
Maturity Year (15 years + 6 years lock-in period) 2044
Total Interest Earned on Maturity Rs 29,89,690
Total Maturity Amount Rs 44,89,690
 

What is the Sukanya Samriddhi Yojana Tax Benefit?

Sukanya Samriddhi Yojana (SSY) provides a substantial tax-free yield as it comes under exempt-exempt-exempt (EEE) tax status. The yearly deposit (contributions) qualifies for a deduction under Section 80C, while the benefits upon maturity are exempt from taxes. However, take note that the highest per annum investment cap is set at Rs 1,50,000.

How to Open a Sukanya Samriddhi Yojana Account?

An SSY account can be opened at any post office or a participating public or private bank. Presently, there is no provision for opening an online Sukanya Samriddhi Account.

You need to provide the girl child's birth certificate and Know Your Customer (KYC) documentation for a parent or guardian. The KYC documents include a photograph, identity proof, and address proof. Furthermore, you should complete a SSY form and provide a check or demand draft as an initial payment. The bank or post office might request supplementary documentation.

The Sukanya Samriddhi Yojana form can be obtained from various sources, including:

  • The official website of the Reserve Bank of India

  • The website of the Indian Post

  • The official websites of participating public or private banks

Click here to know more about the Sukanya Samriddhi Yojana benefits, features, and downsides.

To conclude:

Opting for the Sukanya Samriddhi Yojana proves to be a prudent decision when seeking an enduring plan offering assured return. Nevertheless, keep in mind that the government periodically assesses and can modify the scheme's interest rates as required. Hence, prior to making an investment, it is recommended to use the online Sukanya Samriddhi Yojana calculator available on various financial websites. This tool aids in providing you with an estimate of the potential returns.

Join Now: PersonalFN is now on Telegram. Join FREE Today to get PersonalFN’s newsletter ‘Daily Wealth Letter’ and Exclusive Updates on Mutual Funds.


KETKI JADHAV is a Content Writer at PersonalFN since August 2021. She is an MBA (Finance) and has over seven years of experience in Retail Banking. Ketki specialises in covering articles around banking, insurance, personal finance, and mutual funds and has been doing it for over three years now.


Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.
This article is for information purposes only and is not meant to influence your investment decisions. It should not be treated as a mutual fund recommendation or advice to make an investment decision in the above-mentioned schemes.

PersonalFN' requests your view! Post a comment on "Latest Sukanya Samriddhi Yojana Interest Rate: How Much Can You Earn?". Click here!



Most Related Articles

Will Interest Rates in India Fall Soon? Know Here Interest rates in India have remained elevated for quite some time now (since April 2023). There are key challenges before the RBI to reduce the policy repo rate.

Apr 18, 2024

Sukanya Samriddhi Yojana: Latest Interest Rate, Eligibility, and Benefits Sukanya Samriddhi Yojana (SSY) is a government-backed saving scheme designed for the equal rights and betterment of the girl child in India.

Apr 04, 2024

Why You Should Resist Withdrawing from a Bank FD Discover the hidden costs and financial implications of premature withdrawals from Bank FDs in this insightful exploration.

Mar 18, 2024

Sovereign Gold Bond 2023-24 Series IV Opens for Subscription Today: Should You Invest? Consider investing in Sovereign Gold Bond 2023-24 Series IV to diversify your portfolio, hedge against uncertainty, and benefit from potential capital appreciation and fixed returns.

Feb 12, 2024

Bank Fixed Deposits: Why This Could Be Your Investment Sweet Spot in 2024 On a global scale, monetary policy sentiment has shifted towards a less aggressive stance, indicating that the period of the rising interest rate cycle is now in the past.

Jan 09, 2024

Most Popular

Manufacturing Mutual Funds Shine. Are they Worthy of Your Investment Portfolio?Currently contributing around 17% to the GDP, the manufacturing sector is expected to grow to 21% in the next 6-7 years.

May 06, 2024

6 Equity Mutual Funds to Benefit from India’s Defence SectorThe potential to benefit by sensibly taking exposure to defence sector stocks is huge!

Apr 17, 2024

Top 5 Mutual Funds with High Exposure to EV RevolutionThis article will evaluate the top mutual funds to invest in 2024 that have a high allocation to EV stocks.

Feb 06, 2024

Top 5 Mutual Funds That Are Betting on the Manufacturing BoomThis article will evaluate the top mutual funds to invest in 2023 that have a high allocation to Manufacturing stocks.

Sep 01, 2023

HDFC Mutual Fund launches HDFC Manufacturing FundHDFC Mutual Fund launches HDFC Manufacturing Fund

May 08, 2024