Sunday , August 19 2018

Interest Rates in Sukanya Samriddhi Account (SSA)

Interest Rates in Sukanya Samriddhi Yojana (SSA) FY 2018-19 AY 2019-20 is 8.1% (Updated on 4th April 2018)

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 2017-18 is set to be 8.1% 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 2018-19 (Q1) 2019-20 (Q1) 8.1 Rs 1000 Rs 1.5 Lakhs
1 2017-18 (Q4) 2018-19 (Q4) 8.1 Rs 1000 Rs 1.5 Lakhs
1 2017-18 (Q3) 2018-19 (Q3) 8.3 Rs 1000 Rs 1.5 Lakhs
1 2017-18 (Q2) 2018-19 (Q2) 8.3 Rs 1000 Rs 1.5 Lakhs
2 2017-18 (Q1) 2018-18 (Q1) 8.4 Rs 1000 Rs 1.5 Lakhs
3 2016-17 (Q4) 2017-18 (Q4) 8.5 Rs 1000 Rs 1.5 Lakhs
4 2016-17 (Q2) 2017-18 (Q2) 8.6 Rs 1000 Rs 1.5 Lakhs
5 2016-17 (Q1) 2017-18 (Q1) 8.6 Rs 1000 Rs 1.5 Lakhs
6 2015-16 2016-17 9.2 Rs 1000 Rs 1.5 Lakhs
7 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.

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

40 comments

  1. Dears,

    The rate of interest is year by year going down. when govt propose the SSY plan , Rate of interest is 9.1.now it is 8.1.

    we havent seen additional benefits compared to other financial plans. Might be coming years, the rate of interest might be 6, 5 ,4….etc. Requesting to mr’ PM sir, please focus on thease plans and support the baby girls in future.

    If continue the same, people will loose the interest these type of plans.

    Regards,
    sathish

    • Am also depositing 1.5 lakh every year, but nowdays felt as GREAT CHEATING by our PM as interest rate is GOING DOWN quarter by quarter eventhough they can say many reason, but now just as cheating

  2. ya.. correct. the importance of girl child is decreasing day by day

    • yes Agreed, it’s looks like kind of cheating and putting more pressure on savings for girl child. The kind of rules are not clear and difficult to stop and withdraw money for other investments purpose.

      Dear P.M, please make this interest rate constant help girl child fathers.

  3. I agree with the above mentioned point. Government starts a plan with flying colours and we people fall in for the promises given then the Govt. loses its focus on the plan and the interest rate is going down and down.

    May in few years it will become like a savings account without withdrawal facility during lock in period.

    Then what is the point of investing in Govt. schemes.

    Even the bank employees do not encourage customers to put bulk amount the this scheme.

    If Govt. and authorities pay attention it may improve.

    Thank you,
    Siva Dhanam

  4. Mr PM Sir you are playing with middle class girls and families.You proposed this plan for child benefit but what us going on now.please look into it we are loosing interest to deposit more in this plan.

  5. jitendra mittal

    Whether interest rate varied on existing account

  6. JYOTI RANJAN TRIPATHY

    Respected P.M. Sir

    Please Increase the rate of Interest for the betterment of Girl child.

  7. Yes, you are correct. It is going down and down and down…..please help the middle class.

  8. The girls will be the future for our any nations, need to support them. Government should understand and
    and give more considerations for them

  9. Dear PM Sir,

    Requesting to focus on interest rate. When SSY started , the interest rate was 9.1 and now in 2018 , the interest is reduced to 8.1. May be in future ,there is a chance to reduce further. Please don’t reduce the interest rate due to lot of peoples are investing money for their daughters. Please consider this point

  10. shahadev palve

    It is better that invest money in other private bank account with 8% interest rate for long term period
    so goverment will wake up to increase rate of interest of SSA.cause govmt is going to reduce year by year and will be equal to FD rate

  11. this is very ridiculous. people are kept in disguise. the rate of interest of SSA has substantially decreased. please keep your word and increase the interest for SSA

  12. Prinit Bhambure

    I also request the authorities to keep the interest rate higher than PPF so that this scheme remains attractive to people. Else PPF will become the preferred option. If we assume 2 PPF accounts in one house, and one SSA account, then the total amount that can be deposited is 4.5 L. I think normally after all expenses (including school fees, loans etc), the savings is in the range of 2-4 lakhs. In such cases, the account holder has a choice between PPF and SSA. SSA was preferred due to high interest rate, but if that goes down, then PPF will become the preferred choice considering the lockin period is quite high for SSA.

  13. I have started the account with 9.1%… and now it is 8.1%… whether my account will remains with 9.1 ? or year by year it will be reduced ?

  14. Is it better to Tweet the PM. Will that help?
    I am a physically challenged person with a Girl child born.

    Rather that Banning Plastic by being a copy cat country and copying what other countries are doing, Why not focus on important things. Is Plastic very important to focus on or Girl child of India which are not secure and plus you try to reduce the interest rate.Comon,dont cheat the poor. I managed to deposit 12000 in a year and got $500 interest. What rubbish is this? Crazy Country. Find me on FB Dominic Hogg Mumbai, Will be waiting.THis message is from a father who is the most powerful person when its for his daughter

    • I was planning to open this A/c .Went to SBI where I had my SB a/c.The officer said in a utter frustration why you people are crazy for this.Put the money in SBI MFs and you will have sufficient money for your daughter’s marriage.After seeing me that I am not still discouraged he asked age of my daughter and I said 1 year and he asked for Aadhar Card which i didn’t have and Aadhar is not mandatory for this As i knew.I have only Birth Certificate for my daughter.

      He denied to give me application form citing those reason.Seems they are directed to discourage people to open SSA and redirect them to invest on MF.

      My question what can I do if my SSA not opened due to aadhar card not ready ?1 year old child cannot have aadhar card.So will I have to wait till the card been made ?

      • SUKANYASAMRIDDHIACCOUNTYOJANA

        They cannot refuse to open ssy account just citing lack of aadhaar card. You can raise an official complain SBI. In the mean while you can try opening ssy account in any private bank so can transfer this account to sbi once things are sorted out.

  15. Pathetic. Totally agree with the above comments. Government is cheating us. Started with 9.2 and now its 8.1 which is very bad. We are not seeing an increase at all, if there is some amt of fluctuation quarterly it makes sense but only reductions is what we are seeing. Cheating us poor ppl with such schemes.

  16. AJIT KUMAR SAHU

    PM Modi chitter hai Gils/baby ke name pe politics karke banko ko fayada pahuchaya

    Modi sahab ye chitting hai

  17. Hi There,

    I have opened a SSA account for my daughter in a post office in Pondicherry.

    However i would like to transfer the same from post office to Bank of India which i have a saving account and its feasible for me to do online transfer to SSA.

    When i contacted the post office, they replied me as there is no such transfer facility available.

    Could you please suggest me in this regard.

    Regards,

    Thaj M

    • SUKANYASAMRIDDHIACCOUNTYOJANA

      You will have to raise an official complaint regarding this.

      • Callous officials: even if one shows them rules, including GOI gazette notification, they are not willing to do anything. Unless punitive provisions are made and action taken by higher officials, nothing will move.

  18. Sir,
    Rate of interest is getting down. It’s my concern. Since I joined in the year 2015, around 160,000/-rs rare of Interest bwas 9.2% till date rate of interest has not been increased, it’s not acceptable, since this scheme is exclusively for girl child govt. Has to take any initiative to increase rate of interest, because current market inflation itself is around 5.5% . Consider inflation in long term perspective, it doesn’t give much return, more over its investment amount we can’t withdraw before child attached the age of 21 years,

  19. Surinder Singh Katoch

    Whether interest on new deposit in SSY AC starts from the deposit date or after some particular date?

  20. fake news on facebook that deposit 1000 early upto 14 years and get 600000 one time after it.
    pl. look into the matter .
    girl child problem is big and the rate of interest is low.
    pl. do something about it.

  21. Sir,
    I opened a account for my daughter in 2018. At that time ,it was mentioned on the websites that we have to invest in it for 14 YEARS .but now i come to know this period is extended to 15 YEARS which means same as PPF locking period.In ssa we have to wait for 21 yrs for maturity value ..which is long period as compared to ppf.
    Also year by year QUATER BY QUATER rate of interest is GETTING DOWN.
    I also experienced the bank employees didn’t encourage any people to open ssa.
    So its humble request to respected PM ,kindly pay attention to this govt. Scheme .otherwise people will lose interest in it.

  22. Quite Disappointment with this kind of plan by Govt, Just attract to the parents and late keep in cold bag. no focus from such initiative from govt…Finance Ministry should revised the rate of interest or keep it fix else people will not be depositing their money in this kind of plans.

  23. RAJESH KUMAR PATEL

    RAJESH KUMAR PATEL

    Dear Sir,

    The rate of interest is year by year going down. when govt propose the SSY plan , Rate of interest is 9.1.now it is 8.1. just as cheating PM Sir.

    we havent seen additional benefits compared to other financial plans. Might be coming years, the rate of interest might be 6, 5 ,4….etc. Requesting to mr’ PM sir, please focus on thease plans and support the baby girls in future.

    If continue the same, people will loose the interest these type of plans.

    Regards,

  24. I posted comment on uncooperative attitude of State Banks on SSY accounts on 25July 2018 and it was visible then, now I find it missing. What is the technique or matter?

  25. Really, It is very embarrassing that interest is falling every year. When the scheme was started a dream come true as felt those have baby girl. I request our Prime Minister to look into this scheme.

    Regards

  26. Dear all – the SSY rate moves in conjunction with government bond rates which in turn depend on the RBI policy and current inflation rate. Therefore, the rates are not completely in the control of the government and hence it is not fair to blame the government.
    The govt can be lauded for launching this scheme and continuing with it over the past many years.

  27. Hi All,

    Please read carefully, any interest calculation happens at the 1st of Apirl of each financial year, the interest will get reduced if you pay monthly basis. At initial stages this was not clear and Govt have to educate people on the calculation.

    A normal formar/layman can’t understand these calculation and he will get disappointed badly at the end, which may leads to more complications on their life.

    Thanks

    • SUKANYASAMRIDDHIACCOUNTYOJANA

      Calculations are very simple and clear. PPF accounts have been following these norms for last 20 years and there has been no complaint regarding this.

  28. It is far better to get non-par products with insurance companies, which gives guarantee for next 15-20 years. SSY

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