LIC fixed deposit scheme for senior citizens is a unique term deposit policy tailored to provide individuals aged 60 and above with a financial safety net.
Launched as a scheme under the ‘Beti Bachao, Beti Padhao’ initiative, Sukanya Samriddhi Yojana is designed to offer a girl child financial security for her higher education and marriage. It is essentially a small deposit scheme where you can make a deposit of up to INR 1,50,000 per year.
Opening an account under this yojana offers several advantages such as attractive interest rates, potential savings on income tax, a specified lock-in period, and more. Upon maturity, the account balance along with the accrued interest is paid to the policyholder. Furthermore, even after the scheme reaches maturity, the policyholder continues to earn interest.
In the upcoming sections of this article, we will delve into the features and benefits as well as the interest rates of Sukanya Samriddhi Yojana.
Listed below are the key features and benefits of the Sukanya Samridhhi Yojana -
The Government determines the fixed interest rate of the Sukanya Samriddhi Yojana based on the yields offered by Government securities. Additionally, the interest rate undergoes a quarterly review. Once the interest rate for the Sukanya Samriddhi Account is set, it remains unchanged.
As of 2023, the Sukanya Samriddhi Yojana offers an interest rate of 8% per annum.
The interest rates for the Sukanya Samriddhi Yojana in each quarter are as follows -
Quarter | Sukanya Samriddhi Interest Rate |
---|---|
April to June 2017 (Quarter 1 Financial Year 2017-18) | 8.4% |
July to September 2017 (Quarter 2 Financial Year 2017-18) | 8.3% |
October to December 2017 (Quarter 3 Financial Year 2017-18) | 8.3% |
January to March 2018 (Quarter 4 Financial Year 2017-18) | 8.1% |
April to June 2018 (Quarter 1 Financial Year 2018-19) | 8.1% |
July to September 2018 (Quarter 2 Financial Year 2018-19) | 8.1% |
October to December 2018 (Quarter 3 Financial Year 2018-19) | 8.5% |
January to March 2019 (Quarter 4 Financial Year 2018-19) | 8.5% |
April to June 2019 (Quarter 1 Financial Year 2019-20) | 8.5% |
July to September 2019 (Quarter 2 Financial Year 2019-20) | 8.4% |
October to December 2019 (Quarter 3 Financial Year 2019-20) | 8.4% |
January to March 2020 (Quarter 4 Financial Year 2019-20) | 8.4% |
April to June 2020 (Quarter 1 Financial Year 2020-21) | 7.6% |
July to September 2020 (Quarter 2 Financial Year 2020-21) | 7.6% |
October to December 2020 (Quarter 3 Financial Year 2020-21) | 7.6% |
January to March 2021 (Quarter 4 Financial Year 2020-21) | 7.6% |
April to June 2021 (Quarter 1 Financial Year 2021-22) | 7.6% |
July to September 2021 (Quarter 2 Financial Year 2021-22) | 7.6% |
October to December 2021 (Quarter 3 Financial Year 2021-22) | 7.6% |
January to March 2022 (Quarter 4 Financial Year 2021-22) | 7.6% |
April to June 2022 (Quarter 1 Financial Year 2022-23) | 7.6% |
July to September 2022 (Quarter 2 Financial Year 2022-23) | 7.6% |
October to December 2022 (Quarter 3 Financial Year 2022-23) | 7.6% |
January to March 2023 (Quarter 4 Financial Year 2022-23) | 7.6% |
April to June 2023 (Quarter 1 Financial Year 2023-24) | 8% |
The interest on the Sukanya Samriddhi Yojana account is computed based on the minimum balance during the calendar month, specifically between the fifth day and the last day of the month. The interest amount will be credited only once at the conclusion of each financial year.
The interest on a Sukanya Samriddhi Yojana account accumulates annually, making it challenging to manually compute the interest. However, there is a simpler solution - the Sukanya Samriddhi Yojana Calculator.
By entering essential details such as the yearly investment amount, the age of the girl child, and the year in which the account was opened, you can effortlessly determine the maturity amount with the help of the online calculator.
Here are the eligibility criteria for the Sukanya Samriddhi Yojana -
While the Sukanya Samriddhi Yojana Account interest rates are determined by the Government, there are certain situations where interest may not accrue to the account. These situations are as follows:
In such cases, the entire deposit amount will earn a reduced interest rate. The Sukanya Samriddhi Yojana interest rate will not be applicable; instead, the lower interest rate of the savings account will apply. If any additional interest has been paid prior to the default, it will be deducted from the account balance.
If the account is closed prematurely for any other reason, the Sukanya Samriddhi Yojana interest rate will not apply. In such cases, the interest rate of the savings account will apply to the deposits.
The Sukanya Samriddhi scheme is also an excellent investment scheme in terms of tax savings. The amount invested in the Sukanya Samriddhi Yojana account is eligible for deduction from your taxable income. You can claim a deduction of up to INR 1,50,000 under Section 80C of the Income Tax Act of 1961.
Additionally, the scheme follows the EEE (Exempt-Exempt-Exempt) framework. This means that not only are the investments deductible, but the interest earned and the amount received are also tax-free.
With the interest income from SSY exempted from taxes, this scheme is quite tax-efficient and allows you to save on tax liability while building a tax-free corpus for your daughter's future.
Although the Sukanya Samriddhi Yojana interest rate has been reduced in recent quarters, it still offers the highest interest rate among other small saving schemes in the market. This, combined with the tax benefits, enables you to build a substantial corpus for your daughter's future without concerns about tax obligations.
For more information regarding Sukanya Samridhhi Yojana interest rates, go through the following frequently asked questions section.
Ans: The Sukanya Samriddhi Yojana interest rate is determined by the Government of India and is revised every quarter. The current interest rate is 8% and is compounded annually.
Ans: The Sukanya Samriddhi Yojana allows you to start your contributions with a minimum of INR 250 while granting you the flexibility to invest up to a maximum of INR 1,50,000 per financial year.
Ans: The interest rate tends to remain the same for both post offices and the bank.
Ans: The maturity amount of a Sukanya Samriddhi Yojana account is based on the investments that you make per year. Further, you can withdraw 50% of the deposit amount early on, once the girl child turns 18 either, for higher education or later for marriage.
Ans: No, the Sukanya Samriddhi Yojana interest is tax-exempted.