Sukanya Samriddhi Yojana (SSY) Account Interest Rate 2023: The current interest rate on SSY account deposits is 7.6%. There was no change in SSY interest rate in the revised small savings deposit rates announced by the Government on December 30. This means, the 7.6% SSY interest rate would be applicable to SSY deposits made in the first quarter of New Year 2023.
Amid recent repo rate hikes by the Reserve Bank of India and rising inflation, Sukanya Samriddhi account holders were expecting an upward revision in the SSY interest rate. More so because even several banks are offering higher interests on Fixed Deposit schemes than SSY deposits. In past, SSY deposits have enjoyed a higher interest than bank FDs.
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Sukanya Samriddhi Yojana (SSY) Account Interest Rate 2023
The Union Government revises Sukanya Samriddhi Yojana (SSY) account interest rate on a quarterly basis. The next revision of the SSY interest rate will take place by the end of March 2023. Therefore, the SSY interest rate to be applicable in the first quarter of 2023 (January-March) is 7.6%.
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SSY Account Benefits 2023
SSY account provides several benefits to account holders. Following are some top benefits of the SSY account.
Secure the financial future of your girl child: SSY account is dedicated to the girl child. It can be opened in the name of the girl child aged below 10 years either in a post office or in a bank. Withdrawal from the SSY account can be made after the girl child attains 18 years of age or passes the 10th standard. The account, however, can be closed on maturity after 21 years from the date of opening or at the time of marriage of the girl child.
Guaranteed returns: SSY account deposits enjoy a sovereign guarantee. So even if the bank or the post office fails, your deposits and the financial future of your girlchild will be secure.
Triple tax benefits: Deposits made to the SSY account qualified for deduction under Section 80C of the Income Tax Act, subject to the maximum ceiling of Rs 1.5 lakh/year. The interest earned and the amount withdrawn on maturity are also tax-free.
Higher returns: The SSY account interest rate is generally higher than regular fixed deposit interest rates offered by banks and the post office. The current rate of 7.6% on SSY deposits is higher than many bank FDs. At the current 7.6% interest, one can accumulate up to Rs 66 lakh till maturity by depositing Rs 1.5 lakh/year in the SSY account.
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Low minimum deposits: The minimum deposits you can make in an SSY account is just Rs 250 in a financial year. The idea behind the SSY account is to let you save as much as possible for the benefit of your girl child. The maximum deposit limit is Rs 1.5 lakh in a financial year. You can also set standing instructions for SIP-like monthly deposits in the SSY account.
Benefit of compounding: Deposits made in an SSY account earn compound interest, which provides depositors with an opportunity to grow the wealth for the benefit of their girl child significantly over the long term. There is an option of interest compounded annually with an option for monthly interest pay-outs to be calculated on the balance in completed thousands.