The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme introduced by the Indian government in 2015 under the Beti Bachao Beti Padhao initiative. Designed to promote the welfare of the girl child, the scheme aims to ensure her education and marriage expenses are covered by providing long-term financial support.
This scheme offers attractive interest rates and tax benefits, making it one of the most popular options for parents who wish to save for their daughter’s future.
1. Key Features of Sukanya Samriddhi Yojana
- Eligibility: The Sukanya Samriddhi Yojana can be opened for any girl child below the age of 10 years. A maximum of two accounts can be opened per family (three in the case of twins or triplets).
- Interest Rate: The scheme offers an interest rate of 7.6% (subject to quarterly revisions). This is one of the highest rates among government-backed schemes.
- Minimum and Maximum Deposit:
- Minimum Deposit: ₹250 per year.
- Maximum Deposit: ₹1.5 lakh per year.
- Duration: The account matures when the girl turns 21 years old. However, partial withdrawals can be made after the girl turns 18 and after the account has completed 14 years.
- Tax Benefits: Deposits made to the Sukanya Samriddhi account qualify for tax deductions under Section 80C of the Income Tax Act. Interest earned on the account is tax-free, and the maturity amount is also exempt from tax under Section 10(11) of the Income Tax Act.
2. How to Open a Sukanya Samriddhi Account?
To open an account under the Sukanya Samriddhi Yojana, you need to visit a post office or designated bank. Here’s the process:
- Required Documents:
- Birth certificate of the girl child.
- Proof of identity and address (Aadhaar card, voter ID, etc.) of the parent/guardian.
- Fill the Form: A special form is available at the post office or the bank for this scheme. The parent or guardian of the girl child must fill out the form.
- Deposit Amount: A minimum deposit of ₹250 must be made to open the account.
- Account Opening: After submission of documents and payment, the account will be opened, and a passbook will be issued.
3. Benefits of Sukanya Samriddhi Yojana
- High Returns: With an interest rate of 7.6%, the scheme offers better returns than traditional savings accounts or fixed deposits.
- Tax Savings: As part of Section 80C, you can claim a tax deduction on the contributions made to the Sukanya Samriddhi account.
- Security: Being a government-backed scheme, the Sukanya Samriddhi Yojana is secure and risk-free.
- Compounding Interest: The interest earned on the amount is compounded annually, increasing the investment value over time.
- Partial Withdrawals: Parents can make partial withdrawals after the girl turns 18 for educational purposes. A partial withdrawal of up to 50% of the balance is allowed.
4. How Does the Sukanya Samriddhi Yojana Work?
- Deposits: The account can be funded with a minimum of ₹250 and a maximum of ₹1.5 lakh each year. You can choose to deposit in lump sums or in installments.
- Interest Calculation: The interest is calculated on the balance at the end of every financial year, and it is credited to the account every year.
- Maturity: The account matures after 21 years from the date of opening. The balance, along with the interest, can be withdrawn upon maturity.
5. Conditions and Withdrawal Rules
- Completion of 14 Years: The parent or guardian must ensure that the account is kept active with annual deposits for 14 years. After 14 years, the girl can start making withdrawals.
- Partial Withdrawal: Once the girl child turns 18, up to 50% of the total balance can be withdrawn for her higher education.
- Account Closure: The account matures when the girl turns 21. The entire accumulated balance can be withdrawn at that point.
6. Who Should Invest in Sukanya Samriddhi Yojana?
The Sukanya Samriddhi Yojana is ideal for:
- Parents of Girl Children: This scheme is exclusively for the welfare of girls, so parents and guardians of daughters are the primary beneficiaries.
- Individuals Looking for Long-Term Investments: It is a long-term scheme that offers steady and compounded growth of your investments.
- Those Looking for a Secure Investment: If you’re looking for a safe investment option that offers a good return with government backing, this scheme is highly beneficial.
7. Alternatives to Sukanya Samriddhi Yojana
While the Sukanya Samriddhi Yojana offers excellent benefits, you may also explore these alternatives for saving for a child’s future:
- Public Provident Fund (PPF): Another government-backed scheme with similar tax-saving and interest benefits.
- Child Education Plans: Offered by insurance companies with the added benefit of insurance cover.
- Bank Fixed Deposits (FDs): While lower in interest, they are a safer option for short-term goals.
Conclusion
The Sukanya Samriddhi Yojana is a fantastic tool for ensuring that your daughter’s future is secure, whether it’s for her higher education or marriage. With its high returns, tax benefits, and government backing, it’s one of the best investment options available to parents. By starting early and making regular deposits, you can accumulate a substantial amount by the time the girl turns 21, ensuring that she has a financially stable future.
For more information, you can visit the official website or reach out to the nearest post office or bank offering this scheme.
Related Links:
- Official Sukanya Samriddhi Yojana Information: Sukanya Samriddhi Yojana Portal