Sukanya Samriddhi Yojana

Rising inflation and shifting economic priorities are prompting investors to seek alternative avenues offering better returns

Shift to new tax regime, steady rates affect collections

An account can be opened for a girl child below 10 years of age. It matures 21 years from the end of the financial year in which it was opened

Accounts opened by grandparents (not legal guardians) must transfer guardianship to a legal guardian or 'natural parents'

It offers attractive tax benefits and incentives to help secure your daughter's finances

Deposit is to be made for 15 years from the date of account opening. The account will mature 21 years after the date of opening or at the time of marriage of the girl child

The government on Friday raised the interest rates on Sukanya Samriddhi scheme by 20 basis points and three-year term deposit scheme by 10 basis points for the January-March quarter, while retaining the rates for all other small savings schemes. According to a finance ministry circular, the deposit under Sukanya Samriddhi scheme would attract an interest rate of 8.2 per cent from the existing 8 per cent, while the 3-year term deposit would become 7.1 per cent from the current 7 per cent. However, the interest rates for popular PPF and savings deposits have been retained at 7.1 per cent and 4 per cent, respectively. The rates were the same during the December quarter. The interest rate on the Kisan Vikas Patra is 7.5 per cent and the investments will mature in 115 months. The interest rate on the National Savings Certificate (NSC) remained unchanged at 7.7 per cent for January 1 to March 31, 2024, period. There is no increase in interest rate for the Monthly Income Scheme, and thi

Returns of some schemes remain unchanged throughout the tenure, but can fluctuate in the case of others

While Sukanya Samriddhi Yojana offers a higher interest rate, PPF can be continued for a longer tenure and offers greater flexibility after 15 years

Senior Citizens' Savings Scheme remains a must-have for those who need regular cash flows after retirement

National Savings Certificate, Public Provident Fund rate kept unchanged

One significant point investors must remember while investing in PPF is that they must put in the money at the right time to maximise the return they earn from it.

Take into account tax benefit and payout frequency as well when selecting a scheme

However, do so only if your asset allocation requires you to invest more on the debt side, and you are comfortable with the long lock-in

Only PPF and Sukanya Samriddhi offer higher returns among govt-backed schemes

Individuals and HUFs can opt for a new tax regime from FY 2020-21 by giving up about 70 deductions/exemptions

The deadline to make deposits in PPF and Sukanya Samriddhi Yojana for the financial year 2019-20 (FY20) has been extended till June 30 this year

Senior Citizens Savings Scheme, Sukanya Samriddhi Yojana and PPF continue to be attractive

Govt has removed many possible hurdles that investors could have faced after enrolling for the scheme