Sukanya Samridhi Yojana: As the financial year 2023-24 enters its fourth quarter, investors in the Sukanya Samriddhi Yojana are set to receive a New Year’s gift in the form of increased interest rates. The scheme, designed especially for the financial well-being of daughters, will now yield returns at 8.2%, up from the previous 8%. This marks the second interest rate hike in the current fiscal year, following an earlier increase from 7.6% to 8% in the first quarter.
No Change in Other Small Savings Schemes:
The Department of Economic Affairs, under the Finance Ministry, released a circular outlining the interest rates for various small savings schemes from January to March 2024. While Sukanya Samriddhi Yojana witnessed a boost, other schemes maintained their existing interest rates. Savings deposits will accrue 4% interest, 6.9% for a 1-year time deposit, 7% for a 2-year time deposit, and 7.5% for a 5-year time deposit. The interest rates for 5-year recurring deposits remain at 6.7%.
“National Savings Certificate continues at 7.7% interest, Kisan Vikas Patra at 7.5% with a 115-month maturity, and the Senior Citizen Saving Scheme at 8.2% for this quarter. Post Office Monthly Income Account Scheme retains a 7.4% interest rate”.
PPF Investors Express Disappointment:
However, disappointment looms among investors in the Public Provident Fund (PPF), as the interest rate remains stagnant at 7.1%. This rate has not seen any change since April 2020, leaving PPF investors wanting amidst the positive adjustments in other schemes.
“While the New Year brings joy for Sukanya Samriddhi Yojana investors with enhanced returns, PPF investors find themselves in a state of disappointment as the interest rates for their favored scheme remain unaltered. The government’s strategic adjustments reflect a nuanced approach to managing diverse small savings schemes catering to the varied financial needs of the populace”.
