What is Sukanya Samriddhi Yojana [SSY]? All you need to know

If you’re a parent with a daughter, the Sukanya Samriddhi Yojana (SSY) offers a fantastic opportunity to secure her financial future. Introduced by the Government of India on January 22, 2015, this scheme is designed specifically to support the education and marriage expenses of a girl child. By providing a high-interest savings option, SSY helps you build a substantial corpus over time, ensuring that you’re financially prepared for significant milestones in your daughter’s life. With attractive benefits such as tax deductions, tax-free interest, and a government-backed guarantee, the scheme not only promotes savings but also encourages the financial empowerment of women. Whether you’re looking to fund her higher education or plan for her marriage, Sukanya Samriddhi Yojana offers a reliable and rewarding way to achieve these goals. Let’s dive into Sukanya Samriddhi Yojana [SSY] and explore how SSY can be a valuable addition to your financial planning strategy:

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana is a government-backed savings scheme designed to promote the welfare of the girl child. It provides financial support for her education and marriage, offering attractive interest rates and tax benefits. It’s a part of the Beti Bachao Beti Padhao scheme and aims to improve the financial security of girls in India.

When did Sukanya Samriddhi Yojana Start?

The Sukanya Samriddhi Yojana (SSY) was launched on January 22, 2015, as part of the government’s Beti Bachao Beti Padhao initiative. This scheme aims to promote the welfare and empowerment of the girl child in India by providing a high-interest savings option to support her education and marriage.

What are the Key Features of SSY?

– Interest Rate: The scheme offers one of the highest interest rates among small savings schemes, currently around 8.2% per annum (as of 2024). This rate is compounded annually.

– Minimum Deposit: The minimum deposit required is ₹250 per year.

– Maximum Deposit: The maximum deposit limit is ₹1.5 lakhs per year.

– Tenure: The account has a tenure of 21 years from the date of opening or until the girl gets married after 18 years of age, whichever is earlier.

– Premature Withdrawal: Partial withdrawal up to 50% of the balance is allowed after the girl turns 18, for her education.

What is the Eligibility Criteria for SSY?

– Account Holder: The account must be opened in the name of a girl child who is under the age of 10.

– Guardian: It can be opened by the parent or legal guardian of the girl.

– Multiple Accounts: One account per girl child is allowed, and a maximum of two accounts can be opened per family (with an exception for twins or triplets).

What are the Tax Benefits of SSY?

– Income Tax: Contributions to the SSY are eligible for tax deduction under Section 80C of the Income Tax Act. This deduction is available up to ₹1.5 lakhs per annum.

– Interest Earned: The interest earned is tax-free.

– Maturity Proceeds: The amount received on maturity, including interest, is exempt from tax.

How to Open an SSY Account?

– Where to Open: Accounts can be opened at designated banks and post offices across India.

– Documents Required: Birth certificate of the girl, identity proof of the guardian, and proof of address are required.

– Application Form: Fill out the Sukanya Samriddhi Yojana account opening form available at the respective bank or post office.

How to Operate the SSY Account?

– Deposit Frequency: Deposits can be made in lump sum or in installments throughout the year.

– Online Facilities: Many banks and post offices offer online services for managing SSY accounts, including tracking balance and making deposits.

What are the Benefits of Sukanya Samriddhi Yojana?

– High Returns: The scheme offers an interest rate of 8.2% per annum which is higher compared to many other savings options.

– Government Backing: Being a government-sponsored scheme, it carries minimal risk.

– Financial Security: Helps in building a corpus for the girl’s higher education and marriage.

– Encourages Savings: Promotes disciplined savings among families.

What is the Rule on Maturity and Withdrawal of SSY Amount?

– Maturity Benefits: Upon maturity, the account balance is paid out along with interest. This can be used for the girl’s higher education or marriage.

– Pre-Maturity Withdrawal: Partial withdrawal of up to 50% of the balance is allowed for educational purposes once the girl turns 18.

What are the Rules for Account Closure of SSY Account?

– Closure on Marriage: The account can be closed after the girl turns 18 if she is getting married. In such a case, the balance along with interest is paid out.

– Closure on Completion of Tenure: The account matures after 21 years from the date of opening, or earlier if the girl gets married.

What are the Common Misconceptions related to SSY?

– Single Deposit: Some believe that only one lump sum deposit can be made, but SSY allows multiple deposits.

– Eligibility for All: The scheme is exclusively for girls below 10 years and is not open to boys or older girls.

Conclusion

Sukanya Samriddhi Yojana is an excellent financial tool for ensuring a secure future for your daughter. With its attractive interest rates, tax benefits, and government backing, it provides a solid foundation for funding her education and marriage. By starting early and making regular contributions, you can build a substantial corpus that will be valuable in achieving her future goals. If you’re looking for a reliable and high-yield investment, SSY is worth considering.

By understanding the details of the Sukanya Samriddhi Yojana, you can make an informed decision and take advantage of this beneficial scheme for your daughter’s future.

These tips are brought to you by HappyWise Financial Services.

If you need any assistance with organizing your finances or want to discuss your investment options, feel free to connect through Email or Whatsapp.

Disclaimer: Some part/s may be generated/modified using GenerativeAI