Sukanya Samriddhi Account Interest Rate from 1st January 2024

Introduction: On February 12, 2024, the Ministry of Finance, through the Department of Economic Affairs, announced an important update to the Sukanya Samriddhi Account Scheme, 2019. This announcement, encapsulated in the Sukanya Samriddhi Account (Amendment) Scheme, 2024, signifies a pivotal shift in the government’s approach to encouraging savings for the girl child’s future. With an emphasis on enhancing the benefits for account holders, this amendment seeks to make the scheme even more attractive to potential savers.

Detailed Analysis: The amendment introduced several critical changes to the Sukanya Samriddhi Account Scheme, with the primary focus on adjusting the interest rates for deposits. Key highlights of the amendment are as follows:

• Historical Context and Changes: Previously, the interest rates were set for deposits made from April 1, 2023, to December 31, 2023. The amendment specifies that these rates were only applicable within the aforementioned timeframe, paving the way for the introduction of new rates.
• Revised Interest Rates: A significant highlight of the amendment is the introduction of a new interest rate for deposits made on or after January 1, 2024. According to the amendment, deposits made into the Sukanya Samriddhi Account from this date will earn an interest rate of 8.2% per annum. This adjustment is aimed at making the scheme more lucrative for savers, ensuring higher returns on their investments towards securing their girl child’s future.
• Implementation and Retrospective Effect: Notably, the scheme amendment has been given a retrospective effect, commencing from January 1, 2024. This means that account holders will benefit from the revised interest rates for deposits made from the beginning of 2024. The Explanatory Memorandum attached to the notification reassures that the retrospective application of this amendment will not adversely affect any account holder.

Conclusion: The Sukanya Samriddhi Account (Amendment) Scheme, 2024, represents the government’s commitment to enhancing the financial security and future prospects of the girl child in India. By revising the interest rates upwards, the Ministry of Finance aims to incentivize savings under this scheme, ensuring that families are more inclined to invest in their daughters’ futures. This amendment not only benefits current account holders but also makes the scheme more attractive to new savers. As the government continues to refine its savings schemes, it is imperative for potential and existing savers to stay informed about such amendments to maximize the benefits of their investments.

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MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 12th February, 2024

G.S.R. 109(E).—In exercise of the powers conferred by section 3A of the Government Savings Promotion Act, 1873 (5 of 1873), the Central Government hereby makes the following Scheme further to amend the Sukanya Samriddhi Account Scheme, 2019, namely:-

1. Short title and commencement.-(1) This Scheme may be called the Sukanya Samriddhi Account (Amendment) Scheme, 2024.

(2) It shall be deemed to have come into force on the 1^st day of January, 2024.

2. In the Sukanya Samriddhi Account Scheme, 2019, in paragraph 5,-

(a) in sub-paragraph (1B), for the words, figures and letters, “on or after the 1^st day of April, 2023”, the following words, figures, letters and brackets “between 1^st day of April, 2023 to 31^st day of December, 2023 (both days inclusive)” shall be substituted;

(b) after sub-paragraph (1B), the following sub-paragraph shall be inserted, namely:-

“(1C) The deposits made in the account on or after the 1^st day of January, 2024 and the balances at the credit of the account shall earn interest at the rate of 8.2 per cent. per annum.”.

[F. No. 1/04/2016-NS]
ASHISH VACHHANI, Addl. Secy.

Explanatory Memorandum.- By giving retrospective effect to the Sukanya Samriddhi Account (Amendment) Scheme, 2024, no one shall be adversely affected as a result of retrospective effect being given to this amendment.

Note : The principal Scheme was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 922(E), dated the 12^th December, 2019 and subsequently amended vide number G.S.R. 288(E), dated the 5^th May, 2020 and G.S.R. 329 (E), dated the 27^th April, 2023.