Modi govt hikes interest rate for this savings scheme ahead of 2024

The Narendra Modi government has hiked the interest rates for ‘Sukanya Samriddhi Yojana’ by 20 basis points. As per a finance ministry circular, the deposit under this scheme will now have an interest rate of 8.2 per cent instead of earlier 8 per cent, PTI reported.

The Centre’s ‘Sukanya Samriddhi Yojana’ is a savings scheme for girl child as part of its ‘Beti Bachao – Beti Padhao’ initiative(Representative image)

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

A parent or guardian of a girl child aged 10 or younger can open an account in either authorised bank or nearest post offices under this scheme, which offers a higher interest rate as well as several tax benefits.

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The Sukanya Samriddhi Yojana scheme account matures after 21 years, or in the event of marriage of the girl child after she turns 18. However, the depositor can prematurely withdraw up to 50 per cent of the investment after the girl turns 18, even if she does not marry.

What about interest rates of other schemes?

The government raised the interest rates on three-year term deposits from 7 per cent to 7.1 per cent. But the interest rate for Public Provident Fund is unchanged at 7.1 per cent. Also, interest rate on savings deposit remains at four per cent.

The interest rate on Kisan Vikas Patra stands at 7.5 per cent. If you have invested in the scheme, your investment will mature in 115 months. The National Savings Certificate (NSC) interest rate remains at 7.7 per cent for January 1 to March 31, 2024, period.

The government has decided not to hike the interest rate for the monthly income scheme, i.e 7.4 per cent.

The government notifies the interest rate on small savings schemes, majorly operated by post offices, every quarter in the financial year.

The Reserve Bank since May 2022 has raised the benchmark lending rate by 2.5 per cent to 6.5 per cent, prompting banks to raise interest rates on deposits as well.

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