New Delhi: Looking for safe investment options with steady returns? Small savings schemes might be just what you need. Trusted by conservative investors for years, these government-backed schemes provide reliability without the risks of the stock market. The key, however, is knowing the interest rates on each scheme so you can choose the one that maximises your returns.
Sukanya Samriddhi Offers Highest 8.2% Interest
As per the latest update, the Sukanya Samriddhi Yojana continues to offer the highest interest rate among small savings schemes at 8.2 per cent. The government has also announced that interest rates for popular schemes like the Public Provident Fund (PPF), National Savings Certificate (NSC), and Sukanya Samriddhi will remain unchanged for the third quarter of FY 2025-26.
Small Savings Schemes: Key Details You Should Know
PPF Interest Rate: The Public Provident Fund (PPF) offers an interest rate of 7.1% for the October–December quarter of FY 2025-26, as per the government’s latest notification.
NSC Interest Rate: The National Savings Certificate (NSC) will continue to offer 7.7% interest for the same period.
Sukanya Samriddhi Tax Benefits: The Sukanya Samriddhi Yojana enjoys EEE (Exempt-Exempt-Exempt) status, meaning your deposits, interest earned, and withdrawals are all tax-free under Section 80C of the Income Tax Act.
Who is eligible to open a Sukanya Samriddhi Yojana account?
Only a parent or legal guardian can open the account, and it must be for a girl child under the age of 10.
Where can a Sukanya Samriddhi Yojana account be opened?
You can open an account at any post office or at authorised banks, including SBI, HDFC Bank, ICICI Bank, and several others.
What are the withdrawal, transfer, and maturity rules?
Premature closure is allowed if the girl gets married after turning 18. The account can be transferred anywhere in India between post offices and banks. It matures 21 years from the date it is opened, providing long-term financial security.
Are investments in Sukanya Samriddhi Yojana tax-free?
Yes, the Sukanya Samriddhi Yojana comes under the Exempt-Exempt-Exempt (EEE) category, which means your deposits, the interest earned, and the amount withdrawn at maturity are all tax-free. Additionally, deposits are eligible for deduction under Section 80C of the Income Tax Act.