Sukanya Samriddhi Yojana: A Revolutionary Scheme Empowering the Girl Child’s Future
The Sukanya Samriddhi Yojana is a government-backed investment scheme specifically designed to promote the financial security of the girl child in India. The Central government launched as part of the “Beti Bachao, Beti Padhao” campaign; this scheme empowers parents to save for their daughter’s future expenses, such as education and marriage.
This girl-child savings scheme offers numerous benefits and incentives, making it an attractive option for parents. Not only does it provide a higher interest rate compared to other savings schemes, but it also offers tax benefits u/s 80C of the Income Tax Act.
Somebody must consider emphasizing The significance of the Sukanya Samriddhi Yojana. This empowering scheme plays a vital role in securing the financial future of young girls, giving them access to education and a brighter tomorrow. It not only encourages parents to save for their daughter’s fortunes but also helps reduce gender inequality by ensuring equal financial opportunities for girls. By investing in SSY, parents can secure a bright and prosperous future for their daughters, empowering them to pursue higher education and achieve their dreams.
I will delve deeper to make you understand the various aspects of Sukanya Samriddhi Yojana, including its eligibility criteria, account opening process, investment options, withdrawal rules, and how it contributes towards ensuring a financially secure future for the girl child.
Key Features and Benefits of Sukanya Samriddhi Yojana
The SSY is a savings scheme specifically designed for the welfare of the girl child in India. The Hon’ble Prime Minister launched SSY on 22nd January 2015 as a part of the “Beti Bachao Beti Padhao” campaign. This government-backed initiative offers a range of critical features and benefits that make it an attractive long-term investment option for parents and guardians.
One of this scheme’s primary advantages is its tax benefits. Contributions made towards the Sukanya Samriddhi Yojana are eligible for deduction u/s 80C of the Income Tax Act, allowing individuals to reduce their taxable income by up to a specific limit.
High-Interest Rates
Another significant benefit is the high-interest rates offered by this scheme. The Sukanya Samriddhi Yojana currently provides the following:
- 8% per annum interest rate
- One of the highest interest rates among various savings schemes in India.
- It ensures that your investment grows over time.
Remember that the Government of India decides the interest rate for this scheme and declares it every quarter. The interest rates of small savings schemes, including SSY, are linked to Government Securities (G-Secs) yields. The Finance Ministry reviews the interest rates of small savings schemes like the Sukanya Samriddhi Account every quarter of a financial year.
You can see the below table to know the past interest rate history of Sukanya Samriddhi Yojana in India since 2015.
Moreover, this scheme helps parents plan for their daughter’s future expenses, such as education and marriage. Investing in Sukanya Samriddhi Yojana can build a substantial corpus over time, which you can use for these important milestones in your child’s life.
Additionally, this savings scheme promotes financial inclusivity by encouraging families to save specifically for their girl child. It aims to empower young girls by providing them with a secure financial foundation and ensuring they can access resources when needed.
Eligibility Criteria and How to Open a Sukanya Samriddhi Account
Opening a Sukanya Samriddhi Account is a great way to secure your daughter’s future and provide for her education and marriage expenses. However, it is essential to understand the eligibility criteria and the account opening process to ensure a smooth experience.
To be eligible for a Sukanya Samriddhi Account, the account holder must be a girl child below the age of 10 years. It means that the account can be opened anytime from the birth of the girl child until she turns 10. It is crucial to note that only one account can be opened per girl child.
When opening a Sukanya Samriddhi Account, certain documents are required. These typically include:
- Birth certificate of the girl child
- Identity proof of the depositor (parent or legal guardian)
- Address proof of the depositor
Once you have gathered all the necessary documents, you can follow these steps to open a Sukanya Samriddhi Account:
- Visit your nearest post office or designated bank branch that offers Sukanya Samriddhi Accounts.
- Fill out an application form with accurate details regarding your daughter and yourself as the depositor.
- Submit all required documents along with photocopies for verification.
- Make an initial deposit amount as the bank or post office specified.
- Once all formalities are completed, you will receive a passbook containing all relevant details of your Sukanya Samriddhi Account.
Remember, this account has a tenure of 21 years or until your daughter gets married after attaining 18 years of age, whichever comes first.
By understanding and fulfilling these eligibility criteria and following the simple steps mentioned above, you can easily open a Sukanya Samriddhi Account for your daughter’s bright future.
Annual Savings
The minimum investment is Rs 250, while the maximum is Rs 1,50,000. The tenure of SSY is 21 years. Under Section 80C, the principal deposited, interest generated during the term, and maturity benefits are all tax-exempt.
Flexibility
You can transfer your SSY account anywhere in India from one post office or bank to another. Even after maturity, you will get interest even if the account is not closed.
Years To Deposit
You can make maximum deposits up to 15 years after opening. If you have yet to make a minimum deposit of Rs. 250 in a given Financial Year, the account is said to be in default. The Defaulted accounts can be revived before 15 years of completion by paying a minimum of Rs. 250 plus Rs. 50 for each year that was in default.
Withdrawal
(i) After a girl child becomes 18 or has completed the 10th grade, withdrawals can be made from the account.
(ii) Withdrawals are permitted up to 50% of the balance available after the last F.Y.
(iii) Withdrawals may be made in whole or in a maximum of five equal payments, up to the stipulated ceiling, and subject to the real necessity of fee/other costs.
Closure on maturity
Account matures after 21 years from the date of account opening. Or at the time of marriage of the girl child after attaining the age of 18 years.
Let’s take an example.
If you deposit Rs 10,000 per month or Rs. 1,20,000 each year for 15 years in the SSY account and the interest rate is 8% per annum (assumed), you will get Rs 35.18 lakh after 15 years. You will continue with the SSY account until the end of the maturity period (21 years) without any further deposits. You will get Rs 55.84 lakh at maturity.
In conclusion, securing your daughter’s financial future is of utmost importance, and the Sukanya Samriddhi Yojana is an excellent way to do so. By taking advantage of this government-backed savings scheme, you can ensure that your daughter has a solid foundation for her financial well-being.
The Sukanya Samriddhi Yojana offers numerous benefits, such as high-interest rates, tax exemptions, and flexibility in deposit amounts. It provides a safe and secure investment option specifically designed to meet the long-term financial needs of girls.
Starting early and consistently investing in this scheme can accumulate a substantial corpus over time. It will empower your daughter to pursue higher education, start her own business, or fulfill her other aspirations.
Don’t wait any longer – take action today to secure your daughter’s financial future with the Sukanya Samriddhi Yojana. Give her the gift of financial independence and peace of mind knowing she will have the resources she needs to achieve her dreams. Start investing now and reap the rewards in the years to come!
Protect her tomorrow, today!
I am a CERTIFIED FINANCIAL PLANNERCM, CHARTERED WEALTH MANAGER®. For the moment, I have shared my experience growing up with you because it had a tremendous impact on how I do what I do. If you have a question about your financial situation, please connect me. I would be delighted to try to be of service.
Don’t miss any future posts; please subscribe via email.
Hello! Connect With Mr. Rupakumar Pradhan, CFP, CWM Contact Form Link:https://forms.gle/dhuYuUp7Uri5cB9U9