- It is a one-time new small savings scheme of the government of India announced in the Budget 2023.
- It will be made available for a two-year period up to March 2025.
- This will offer deposit facility upto Rs 2 lakh in the name of women or girls for a tenure of 2 years.
- The deposit facility will offer fixed interest rate of 7.5 per cent with a partial withdrawal option.
Benefits offered
- It is a suitable alternative to fixed deposits (FDs) invested in the name of a woman for the short term.
- The returns are higher than bank FDs and partial withdrawal makes liquidity less of a concern.
Other details
- The Scheme will be rolled out through banks and post offices across the country.
- The taxation structure is yet to be known and the scheme is expected to be available from April 1, 2023.
How is it different from Sukanya Samriddhi Yojana?
- SSY is a small deposit scheme of the government of India meant exclusively for a girl child. The scheme is meant to meet the education and marriage expenses of a girl child.
- The current rate of interest offered by Sukanya Samriddhi Yojana is 7.6%, which is compounded annually.
- Account can be opened in the name of a girl child till she attains the age of 10 years.
- The total amount deposited in an account shall not exceed Rs 1,50,000 in a financial year.
- Sukanya Samriddhi scheme has tax benefits under Section 80C.
- The account matures after 21 years from the date of opening or on marriage of the girl child under whose name the account is opened, whichever is earlier.