For the Financial Year 2015-16 government has declared Interest Rate of 9.2% on the Sukanya Samriddhi Yojana. Please note that the interest rate is not fixed and linked to the government bond yield. SSY will offer 75 basis points higher than the 10-year government bond yield for the previous year.
Update: As per recent announcement rate of interest has been reduced to 8.6% for FY 2016-17. Also the rates are to be reviewed every three months so the rate of 8.6% is for the period April 1, 2016 - Jun 30, 2016. It will be reviewed on quarterly basis and may change every quarter.
Points to note -
- Interest rate is not fixed and subject to change every year.
- One of the highest rates of interest offered by Government on small savings scheme.
- Interest is calculated on yearly basis and compounded yearly.
- Interest earned is tax free.
- PPF offers 25 basis points higher than the yield of 10-year government bonds where as SSY offers 75 basis points higher than the yield of 10-year government bonds so Sukanya Samriddhi Yoajana may always give a little higher return than PPF.
That's all for this topic Sukanya Samriddhi Yojana (SSY) account interest rate. If you have any doubt or any suggestions to make please drop a comment. Thanks!
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