Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana (SSY) is a small savings deposit scheme announced by the Indian government as part of the “Beti Bachao Beti Padhao campaign” in 2015 for the girl child. So if you are looking for the right investment option to save for your girl child’s educational and wedding costs, this could be your best option as it helps parents of the girl child in saving and getting tax-free returns.
It is possible to open a Sukanya Samriddhi Yojana account at any one of the nearest post offices or any other commercial bank. The amount of deposit can be between Rs. 250 – 1,50,000 per year, depending on your ability and goals. For the FY 2021-22, the Sukanya Samriddhi account interest rate is 7.60 percent per annum, which is considered among the highest compared to other investment options in India.
It is important to note that the investments made in Sukanya Samriddhi Yojana have a lock-in period of 21 years, which means you are not eligible to withdraw the money before the girl turns 21 years of age. But, it is enough if you make deposits for the first 15 years post which the invested amount continues to compound until maturity.
Sukanya Samriddhi Yojana Information
| Interest Rate | 7.60% p.a. |
| Investment Amount | Minimum – Rs. 250 and Maximum Rs.1.5 lakh p.a. |
| Maturity Amount | Depends on the invested amount |
| Maturity Period | 21 years |
Eligibility of Sukanya Samriddhi Yojana (SSY)
The following conditions must be fulfilled in order to open an SSY account in a post office/ bank.:
- The girl in whose name the account is opened must be an Indian resident.
- The age of the girl must not be more than the age of 10.
- An individual can only open a maximum of two SSY accounts. If there are twins or triplets, they can create a second account.
- The parent or guardian of the child is required to create an account for the girl. No one else has the authority to create or operate an account on behalf of the girl.
Features of Sukanya Samriddhi Yojana Account
Knowing about the sukanya samriddhi yojana plan in detail is necessary before you decide to invest in it. Have a look at the important features of the scheme given below:
- Minimum Amount for Opening SSY Account
- SSY Rate of Interest
- Tax Benefits
- Maturity
- Partial Withdrawal
1. Minimum Amount for Opening SSY Account
The minimum amount for account opening is Rs 250 per financial year, and the maximum amount of deposit is up to Rs 1.5 one lakh. Be aware of all the sukanya samriddhi yojana details before opening the account, as it is mandatory to deposit for a period of 15 years from the date you opened your account. If you do not make the required deposit, the account shall be marked as default. Although it is possible to reinstate your account, a penalty fee of Rs 50 per year for every year you have not made deposits should be paid.
The deposit to the SSY account can be made by way of cash or by cheque or demand draft with relevant endorsement behind the attached instrument that has to be made, signed by the depositor, indicating the name of the account holder and the account number in which the deposit is to be credited.
2. SSY Rate of Interest
The interest rate for SSY accounts for the financial year of 2021 is 7.6%. It is necessary for you to refer to the official rates of the scheme by contacting the post office or bank to get the latest rates.
3. Tax Benefits
Sukanya Samriddhi yojana investments are eligible for income tax exemptions with deposits up to Rs.1.5 lakh classified under Section 80C of the Income Tax Act. Similarly, the interest accrued on savings is tax-free, which at the time of maturity is also tax-free in the hands of the depositor. So, the scheme follows Exempt-Exempt-Exempt taxation, providing you with peace of mind in terms of taxation.
4. Maturity
The maturity of the SSY account is 21 years from the date of opening or if the girl gets married before the completion of 21 years. Though the maturity is 21 years, the premium can be paid until 15 years only, post which the invested amount shall continue to earn interest until the date of maturity.
5. Partial Withdrawal
The right to terminate the SSY account before the maturity date is possible, subject to the following conditions. Up to 50% of the balance at the end of the preceding financial year can be withdrawn. For the purpose of marriage, the account can be completely withdrawn. Early withdrawal is accepted only in case the depositor/ parent of the girl child faces any economic burden to continue operating the account or on account of the demise of the parent/ guardian or due to any other medical reasons or if the girl gets married after the legal marriage age of 18 years.
Documents Required for opening a Sukanya Samriddhi Yojana Account
The below documents are to be submitted at the time of opening an SSY account for the purpose of KYC procedures:
- Birth certificate for the daughter.
- The ID proof of the depositor, proving the identity of the person making the payment (parent or guardian legal). The ID documents could be a passport, driver’s license, or an Aadhaar card.
- The proof of residency of the person making the deposit (parent or guardian legal). Documents to prove residency are: Passport, a utility bill for driver’s license or electricity bill, telephone bill, etc.,
- Additional documents required by the appropriate authority must be provided in time.
As mentioned above, you would now have a brief of what is sukanya samriddhi yojana, and if you are looking to create a financial corpus for your girl child, then this scheme shall help you plan for her future with better care. The government of India has come up with this scheme, keeping in mind the future commitments for a girl child and creating a financial plan for them accordingly in advance. Also, with the maturity proceeds earned through the scheme not being taxed in the hands-on of the investor, the Sukanya Samriddhi yojana benefits not only the girl child but also shall help the parent to use the entire corpus to pay for the cost of education of the girl child or for her wedding costs.
