Looking to invest some funds for your daughter’s future, then you have come to the right place. Apart from the different saving and investment options available to every investor, as a parent of girl child you have one more exclusive option. Sukanya Samriddhi Scheme a dedicated scheme designed by Government of India to facilitate saving for girl child’s of India.
Sukanya Samriddhi Scheme is listed under Government of India’s (GOI) Small saving schemes, and its interest rate is declared by GOI every quarter. So you need to keep a lookout for the rate changes every quarter.
In case you are wondering how exactly does government decide how much interest to pay on the scheme, here’s the process:
- Interest rate of Sukanya Samriddhi Yojana Account, just like other small saving schemes is linked to GOI 10 year bond yield, and its interest rate is decided at a certain premium over the 10 year bond yield.
- How the GOI 10 year bond yield is decided is a whole other story. It depends on many factors like economic growth, outlook etc.
- Once you know the GOI 10 year bond yield rate, you need to add the premium to it, and you can arrive at respective schemes interest rate for the year.
- For the current Financial year, Interest rate of Sukanya Smariddhi Scheme is 8.5%, which is at 0.75% higher than the GOI 10 year bond yield.
In the 2 years of this scheme the Interest rate had shown a upward trend, however in the current financial year the rates have been cut down. However this scheme still remains one of the most attractive saving option for parents. It is hoped that in a bid to encourage investors to save for higher education of their daughter, GOI will continue to offer attractive interest rate under this scheme in times to come.
Financial Year Interest Rate
2016-17 8.6% April -June (Quarter 1)
2016-17 8.6% July – September (Quarter 2)
2016-17 8.5% October – December (Quarter 3)
To help you make a informed decision about which small saving scheme is best suited for your daughter, here’s a look at the Interest rate of other popular saving options you can choose from
|Sukanya Samriddhi Yojana||8.5 %|
|Recurring Deposit (Post office)||7.3 %|
|Public provident fund (PPF)||8.0 %|
|LIC Policy||Variable interest range between range of 5-8%|
|Fixed Deposit||Different banks offer different rate and it Varies as per duration of deposit. Range between 6-9%|
As you can clearly see that currently Sukanya Samriddhi Scheme is the best saving option invest funds in for the future of your daughter.
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