The Sukanya Samriddhi Yojana stands out as a remarkable initiative aimed at empowering the girl child and ensuring her financial independence, opening a bank account for your child is one of the most responsible and thoughtful decisions a parent can make.
It not only instills the habit of saving from an early age but also provides a secure financial foundation for their future. Among various government-backed savings schemes.
What is the Sukanya Samriddhi Yojana?
The Sukanya Samriddhi Yojana (SSY) is a small deposit scheme introduced by the Government of India in 2015. It is a unique initiative specifically designed to promote the well-being and financial security of the girl child.
This scheme encourages parents and legal guardians to build a corpus for their daughters’ educational and future needs by investing in a long-term savings plan.
Who can open an account under Sukanya Samriddhi Yojana?
The SSY account can be opened by parents or legal guardians for their daughters below the age of 10 years. The account can be opened at any authorized bank or post office, and a single girl child can have only one SSY account in her name.
The scheme is open to Indian citizens residing in India, and the account can be transferred from one authorized bank or post office to another without any additional charges.
What are the key features of Sukanya Samriddhi Yojana?
The Sukanya Samriddhi Yojana offers several attractive features that make it an appealing investment option for parents and guardians:
- Minimum Deposit: The minimum deposit required to open an SSY account is Rs. 250, and deposits can be made in multiples of Rs. 50 thereafter.
- Maximum Deposit: There is no limit on the maximum deposit amount in an SSY account; however, the total deposit in a financial year cannot exceed Rs. 1.5 lakh.
- Tax Benefits: The deposits made in an SSY account are eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum of Rs. 1.5 lakh per financial year.
- Maturity Period: The SSY account matures after 21 years from the date of account opening, or once the girl child attains the age of 21 years, whichever is earlier.
- Withdrawal: Partial withdrawals from the SSY account are permitted, but only after the girl child attains the age of 18 years, for specific purposes like higher education or marriage.
How is the interest calculated in Sukanya Samriddhi Yojana?
One of the key attractions of the SSY is the attractive interest rate offered on deposits. The interest rate is determined by the Government of India and is revised periodically.
As of 2024, the interest rate on SSY accounts is 8.5% per annum, compounded annually.
The interest calculation is performed based on the following formula:
Interest = (Principal Amount × Interest Rate × Time Period) / 100
The compounding effect further enhances the growth of the invested amount, making it an appealing long-term investment option.
What are the withdrawal and premature closure rules of the scheme?
The Sukanya Samriddhi Yojana has specific rules regarding withdrawals and premature closure:
- Partial Withdrawals: Partial withdrawals from the SSY account are permitted only after the girl child attains the age of 18 years, and only for specific purposes like higher education or marriage expenses.
- Premature Closure: The SSY account can be prematurely closed under exceptional circumstances, such as the death of the account holder or the account holder becoming a non-resident Indian. In case of premature closure, the account holder is eligible to receive the deposited amount along with the interest accrued until the date of closure.
- Final Withdrawal: The SSY account matures after 21 years from the date of account opening, or once the girl child attains the age of 21 years, whichever is earlier. At maturity, the account holder can withdraw the entire accumulated amount, including the principal and the interest earned.
Conclusion
The Sukanya Samriddhi Yojana is a commendable initiative by the Government of India, aimed at promoting the financial empowerment of the girl child.
With its attractive interest rates, tax benefits, and long-term investment horizon, this scheme provides a secure avenue for parents and guardians to build a corpus for their daughters’ future educational and financial needs.
By opening an SSY account, you can not only ensure your daughter’s financial security but also instill the habit of saving from an early age, paving the way for a brighter and more independent future.