Interest Rates in Sukanya Samriddhi (SSA)

 

Interest Rates in Sukanya Samriddhi Account Yojana (SSA) 2016-17

Are you planning to secure your girl child’s future?  Are you thinking over investing in PPF or fixed deposits to make sure the money saved for your daughter grows securely over a period of time and matured when she is ready for either marriage or higher education?  Well, if the financial future of your girl child is a concern for you, Sukanya Samriddhi Scheme would be best suited for you and your girl child

Interest Rates in Sukanya Samriddhi Account Yojana

Interest rates in Sukanya Samriddhi Yojana

The government has made rate of interest in this scheme lucrative enough for parents and guardians to pour in more and more money for the security of their girl child.  The interest rate for SSA for the current year 2016-17 is set to be 8.6% compounded yearly.  This happens to be the best interest rates among other saving schemes including PPF. Please read this for SSA Vs PPF

When a guardian or parent is getting such a decent interest rate on Sukanya Samriddhi account and EEE tax exemption under 80C, they are more likely to invest more money into the account.

No other investment or deposit scheme in India offers such a high rate of interest along with tax exemption and security for the girl child.

This rate of interest is however not permanent and would keep changing every fiscal year based on the economic factors.  However, considering the noble intent of the scheme, we are sure that it would continue to fetch higher interest rates than other saving schemes.

SSA Interest Rate change Chart

Sno FY AY Interest Rate Min Amount Rs Limit Max Amount Rs Limit
1 2016-17 (Q3) 2017-18 (Q3) 8.5 Rs 1000 Rs 1.5 Lakhs
1 2016-17 (Q2) 2017-18 (Q2) 8.6 Rs 1000 Rs 1.5 Lakhs
1 2016-17 (Q1) 2017-18 (Q1) 8.6 Rs 1000 Rs 1.5 Lakhs
2 2015-16 2016-17 9.2 Rs 1000 Rs 1.5 Lakhs
2 2014-15 2015-16 9.1 Rs 1000 Rs 1.5 Lakhs

Comparison with PPF with Sukanya Samriddhi Account

The higher rate of interest being offered in SSA makes it a preferred choice while comparing it with PPF.  The interest rate under the scheme is moreover linked with government bond yield.  The SSA would give 50 basis points greater than the yield for 10 year government bonds.  The rate of interest for PPF is 8.1%, whereas the interest rate for current fiscal year for SSA is 8.6%.

Other benefits along with higher interest rates in Sukanya Samriddhi Account

  • Complete EEE tax benefits under 80C
  • Account is transferrable anywhere in India
  • The minimum amount to be deposited every year quite low, i.e. Rs 1,000 per year
  • The girl child can operate the account after 10 years
  • The girl child to get the proceeds on maturity of the account

Till now, there has been no other scheme which offers the dual benefits of growth as well as financial security along with creating an awareness wherein the girl child is no more a burden on parents and guardians.  The Sukanya Samriddhi Yojana, we hope will go a long way in creating better life for the girl child in India.

Other Important Articles to Read

  1. Advantages of Sukanya Samriddhi Yojana
  2. Withdrawl Rules of Sukanya Samriddhi Yojana

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