Good News Investors! Sukanya Samriddhi Scheme deposits to attract higher interest rates

As a New Year’s Gift for investors, the interest rate for deposits under the Sukanya Samriddhi scheme is increasing from 8 percent to 8.2 percent. Similarly, the interest rate for the 3-year term deposit will change from its current rate to 7.1 percent.

Under the Sukanya Samriddhi Scheme, parents or legal guardians can open an account for the girl child from the birth of the girl till she is 10 years old. Sukanya Samriddhi Yojana accounts can be opened in post offices and banks.

According to a finance ministry circular, the deposit under the Sukanya Samriddhi scheme would attract an interest rate of 8.2 percent from the existing 8 percent, while the 3-year term deposit would become 7.1 percent from the current 7 percent.

The government on Friday raised the interest rates on the Sukanya Samriddhi scheme by 20 basis points and the three-year term deposit scheme by 10 basis points for the January-March quarter.

However, the interest rates for popular PPF and savings deposits have been retained at 7.1 percent and 4 percent, respectively.

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

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