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Sukanya Samriddhi Yojana (SSY) scheme

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:

ObjectiveAims to ensure equitable share to a girl child in resources and savings of a family.
SchemeSmall 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 Date2015
Investment TypeSmall 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.
WherePost office and selected banks
Max Number of Accounts1 account per girl, Maximum of 2 girl children
Age EligibilityFrom birth to 10 years of the girl’s child
Min. DepositRs. 250 per year (Previously Rs. 1000), further multiples of Rs. 100
Max. DepositRs. 1.5 lakh per year
Interest Ratesubject to annual changes
Partial Withdrawal50% allowed at the age of 18 years of the girl
Maturity21 years from the date of account opening or marriage, whichever is earlier