The Sukanya Samriddhi Yojana was introduced under the campaign ‘Beti Bachao Beti Padao‘ with the objective to secure the financial future of the girl child. The current rate of interest offered by Sukanya Samriddhi Yojana is 7.6% compounded annually. Sukanya Samriddhi Yojana is a long-term savings scheme that can be opened in any designated private or public bank and post-offices.
Let’s read further to know in detail about Sukanya Samriddhi Yojana.
What is Sukanya Samriddhi Yojana?
SSY is a long-term savings scheme that allows the parents or guardians of the girl child to invest systematically in the scheme to secure the financial future of the girl child. The scheme is specifically designed to ensure the financial security of the girl child in the long term. Parents who have a girl child below the age of 10 years are eligible to invest in SSY. The scheme provides financial protection to the child until she attains the age of 18 years.
Eligibility Criteria to Open Sukanya Samriddhi Yojana Account Scheme
The following are the eligibility criteria to open an SSY account:
- The account can be opened by a parent or legal guardian of the girl child
- The girl child must be below the age of 10 years
- Only one account is allowed for a girl child
- A family can open 2 SSY accounts in case of a twin girl child
Features of Sukanya Samriddhi Yojana Scheme
Let’s take a look at some of the salient features of the Sukanya Samriddhi Yojana:
- The parent or guardian of the girl child can operate the account until the girl reaches 18 years of age
- The girl must operate the account once she reaches 18 years of age
- An individual can start investing in the Sukanya Samriddhi Yojana account with a minimum amount of Rs. 250 and can invest up to a maximum of Rs. 1.5 lakh in a financial year. The contribution can be made in multiples of 100
- The maturity tenure of the SSY account is until the girl reaches the age of 21 years or once the girl gets married after 18 years of age
- The SSY offers tax benefits in EEE format i.e (exempt, exempt, exempt). The contribution made toward the scheme up to the maximum limit of Rs.1.5 lakh under Section 80C of the IT Act. Moreover, the interest earned on the contributed amount and the maturity amount is also tax exempted.
- The SSY account can be opened in the name of a single girl child. Only two accounts are allowed per family i.e. for each girl child
Sukanya Samriddhi Yojana Benefits
Along with providing financial security to the girl child, there are various other benefits offered by Sukanya Samriddhi Yojana. Let’s take a look at these benefits in detail:
Simple Process of Account Opening
An individual can open an SSY account in a simple and hassle-free way with a minimum deposit of Rs. 250 and can invest up to a maximum of Rs. 1.5 lakh in a financial year. With a contribution amount so low, the account can be opened by any individual falling in any income bracket.
Apart from securing the financial future of the girl child, the major benefit offered by the SSY account is that one can avail of triple tax benefit under the scheme. This means that the contribution made towards the scheme up to the maximum limit of Rs 1 .5 lakh, the interest earned on the contributed amount and the maturity amount is tax exempted under Section 80C of the Income Tax Act.
As compared to any other investment scheme available in the market, the Sukanya Samriddhi Yojana offers a high-interest rate of 7.6 %. The interest rate of SSY is revised every quarter. With such a lucrative rate of interest, it allows the individual to gain a high return on investment in the long term.
Helps to Create Financial Backup for the Girl Child
Pradhan Mantri Sukanya Samriddhi Yojana helps an individual to create a financial back-up for the girl child from the beginning. Moreover, the scheme also helps finance the higher education of the girl child given that 50% of the balance can be withdrawn from the account after the girl turns 18 years of age.
Once the girl reaches the age of 18 years, the account holder can make a premature withdrawal from the account to finance the higher education of the girl child. Moreover, after completion of the 5 years from the date of account initiation, premature withdrawal is allowed in case of any medical emergencies or unfortunate demise of the parent. However, it is mandatory to submit the application form for the same.
Documents Required to Open Sukanya Samriddhi Yojana
Here is the list of documents that should be kept handy while opening a SSY account:
- Sukanya Samriddhi Yojana account opening form
- Birth certificate of the girl child
- Address proof and identity proof of the depositor
- Any other documents requested by the bank and post-office
- A medical certificate of required to be submitted in case twins or triplets are born under one order of birth.