Facts for Prelims (FFP)
Source: LM
Context: The government has increased the interest rate on the Sukanya Samriddhi Yojana (SSY) scheme by 20 basis points for the January-March quarter ahead of the 2024 Lok Sabha polls. The new interest rate is 8.2%, up from the previous 8%.
About the scheme:
| Objective | Aims to ensure equitable share to a girl child in resources and savings of a family. |
| Scheme | Small deposit scheme for a girl child launched under the “Beti Bachao, Beti Padhao” initiative. Offers a higher interest rate than PPF, exclusive to girls below 10 years with a longer lock-in period. |
| Start Date | 2015 |
| Investment Type | Small deposit account. The scheme offers income tax benefits under Section 80C. Interest earned through the Sukanya Samriddhi Account is tax-free. Withdrawals can be made after the account holder turns 18, with a maximum annual withdrawal limit of 50% of the balance. |
| Where | Post office and selected banks |
| Max Number of Accounts | 1 account per girl, Maximum of 2 girl children |
| Age Eligibility | From birth to 10 years of the girl’s child |
| Min. Deposit | Rs. 250 per year (Previously Rs. 1000), further multiples of Rs. 100 |
| Max. Deposit | Rs. 1.5 lakh per year |
| Interest Rate | subject to annual changes |
| Partial Withdrawal | 50% allowed at the age of 18 years of the girl |
| Maturity | 21 years from the date of account opening or marriage, whichever is earlier |
