Sukanya Samriddhi Yojana (SSY) Scheme: Interest Rate, Deposit Rules, and Benefits.

Introduction

The Sukanya Samriddhi Yojana is a government-supervised savings scheme aimed at providing reasons for parents to save to meet the financial needs of the female child in India. It was launched as part of the "Beti Bachao, Beti Padhao" campaign; SSY is a scheme for educating and empowering the girl child.

This scheme immediately gained popularity, owing to its attractive rates of interest, tax benefits, and provision of long-term investment options.

In this blog post, we will cover Sukanya Samriddhi Yojana: the specifics, features, benefits, eligibility, and why this remains an excellent investment to safeguard your daughter's future.

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana is a small savings program for girl children that was introduced by the Indian Government in January 2015. The aim of this scheme is to have the parents or guardians operate a savings account exclusively for a girl child or children for their future expenses (business, marriage, and other formal and informal expenses).

Main Features of SSY

• Interest Rate : The interest rate for this quarter is 8.2%, compounded annually. Many other savings schemes offered by the government cannot compete with the interest rates offered here.

• Minimum and Maximum Deposit : The Sukanya Samriddhi Yojana requires a minimum deposit of ₹250 to open an account, while the maximum deposit limit for this scheme is ₹1.5 lakh for one financial year. Deposits may be made either in one go or in installments.

• Tenure and Maturity : As the SSY account meets maturity on the end date of 21 years from opening or on the girl's marriage date when she attains the age of 18 years, the earlier event occurs. Contributions are to be made for the first 15 years only; the account will continue to earn interest till it attains maturity.

• Partial Withdrawal : With the view to meet the girl child's financial requirement for education, etc., partial withdrawal up to 50% of the balance is allowed from the date the girl child crosses 18 years of age or completes 10th standard examination, whichever earlier.

• Transferability : The SSY account can be transferred from one post office or bank to other post offices or banks located anywhere in India, free of cost, in case the account holder shifts residence.

• Taxation Benefits : Tax deduction for investments made in SSY under Sec 80C of the Income Tax Act up to ₹1.5 lakh per annum; interest earned on the account is also completely tax-free, as well as the maturity amount, so all in all, it is an EEE investment.

Eligibility Criteria for Sukanya Samriddhi Yojana

Following is the eligibility criteria for opening the SSY account:

• Girl Child : This can be opened in the name of a girl child below 10 years of age.

• Number of Accounts : Two accounts will be allowed per family, one for each girl child. In case of twins or triplets, there will be the facility to open the third one.

• Residency : The girl child must be a resident of India at the time of account opening and should continue to be so during the tenure of account.

How to Open Sukanya Samriddhi Yojana Account?

Opening an SSY account is quite a simple process and can be done for any authorised bank or post office. Following is the step-by-step process in order to open the SSY account:

• Locate the nearest Bank or Post Office : The facility of Sukanya Samriddhi Yojana account is available in any authorized bank or post office.

• Filling up the Application form : Get the SSY form for opening of account and fill it up with the name of girl's child, date of birth, guardian's details, and address.

• Submission of Documents : A birth certificate of the girl child, ID, residence proof, and photographs of the guardian will be required documents.

• Make the Initial Deposit : For opening an account, you have to deposit ₹250.

Once you open it, you will receive a passbook that will carry such information as the account number, name of holder, date of opening, deposit amount, rate of interest applicable, etc.

Why Invest in Sukanya Samriddhi Yojana?

There are several benefits of investing in SSY, and that is why this scheme has been one of the most preferred ones for parents across the country. With this, one gets a substantial return over a long period, thus helping amass a decent corpus for addressing the future financial needs of one's daughter.

• Tax Benefits : The scheme provides triple tax benefits under Section 80C, hence tax efficient. The principal, interest accrued, and maturity amount are not liable to tax, hence EEE status.

• Long-term Financial Planning : SSY is a long-term investment scheme that inculcates disciplined saving for 21 continuous years. This would allow the parents to create a sizable amount of funds that could be put to use at the time of the daughter's education or marriage or any future need.

• Assured Returns : Government-backed, the SSY is assuredly returned with minimum risk. This is an investment option that is quite safe for those who do not want to take risks in the market.

• Flexible Deposit Options : The scheme allows for flexible deposits whereby parents can only contribute as their financial capacity will allow. This, therefore, makes this accessible for families from different groupings of income.

• Sukanya Samriddhi Yojana : More than a savings scheme, it is a step to empower the girl child, and it aims at gender equality through financial security and independence.

Key Points to Keep in Mind

• Regular Deposits : At least ₹250 in a financial year should be deposited to maintain the SSY account. If this is not done, the account will be inactive and it can only be activated after paying a penalty of ₹50 every year along with the minimum deposit.

• Premature Closure : This account can be closed prematurely only when there is death or medical emergencies by the account holder and compassionate grounds. In this case, relevant documents must be submitted either to the bank or post office.

• Maturity and Closure : The account matures after the completion of 21 years, or on the event of marriage of the girl after the attainment of the age of 18 years. The amount standing at credit in the account at the time of maturity with accrued interest is payable to the account holder upon presentation of all the required documents.

Conclusion

Sukanya Samriddhi Yojana is a very good savings instrument for those parents who look forward to securing their daughter's future while enjoying significant returns and tax benefits. With such an attractive interest rate and governmental backing, the scheme must be the best for anyone desiring to build a safe and successful future for his daughter.

Invest in Sukanya Samriddhi Yojana today and take the first step toward ensuring a bright, secure future for your daughter.