New Year Gift: Modi Govt Increases Interest Rate For This Savings Scheme

New Delhi: On a day when most eyes in India are on Ayodhya, there was good news filtering through for a certain section of savers.

The Narendra Modi government has hiked the interest rate for ‘Sukanya Samriddhi Yojana’ by 20 basis points, reported PTI.

According to a Finance ministry circular, deposits under this scheme will henceforth earn an interest rate of 8.2% — up from 8%.

The Central government’s ‘Sukanya Samriddhi Yojana’ is a savings scheme for the girl child as part of its ‘Beti Bachao – Beti Padhao’ initiative.

As part of this scheme, a parent or guardian of a girl child aged 10 years or younger can open an account in either authorised bank or nearest post offices. Besides higher rate of interest than savings accounts, it also offers tax benefits to the parents/guardians.

Maturity of Sukanya Samriddhi Yojana account is after 21 years, or if the girl child gets married after turning 18.

The depositor can also prematurely withdraw up to 50% of the deposit after the girl turns 18, even if she does not marry.

Interest Rates Of Other Schemes

As for other accounts, the government increased interest rate on three-year term deposits from 7% to 7.1%.

There is no change in interest other schemes. Public Provident Fund continues to give 7.1% per cent interest, savings deposit are still at 4%.

The interest rate on Kisan Vikas Patra (KVP) and National Savings Certificate (NSC) are stagnant at 7.5% and 7.7%, respectively, for the January 1 to March 31, 2024 quarter.

Monthly income scheme interest — 7.4% — has not been revised either.