Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme targeted towards the welfare of the girl child in India. The scheme was launched in January 2015 by the government of India, under the ‘Beti Bachao Beti Padhao’ campaign. The main objective of the scheme is to encourage parents or guardians to save for the future education and marriage expenses of their girl child. The scheme offers a higher rate of interest than other small savings schemes, making it an attractive investment option for parents.
Eligibility:
The Sukanya Samriddhi Yojana is applicable to every girl child in India who is below the age of 10 years. The account can be opened by the parents or guardians of the girl child. Only two accounts are allowed per family, and in case of twins, three accounts can be opened. The account can be opened with a minimum deposit of Rs. 250, and a maximum of Rs. 1.5 lakhs can be deposited in a financial year. The account matures when the girl child turns 21 years old, and the maturity amount is payable to the account holder.
Benefits of Sukanya Samriddhi Yojana:
Higher rate of interest:
The Sukanya Samriddhi Yojana offers a higher rate of interest than other small savings schemes. The interest rate is fixed by the government every quarter and is currently 7.6% per annum.
Tax benefits:
The contributions made towards the Sukanya Samriddhi Yojana are eligible for tax deduction under Section 80C of the Income Tax Act, up to a maximum of Rs. 1.5 lakhs in a financial year. Additionally, the maturity amount and the interest earned are also tax-free.
Flexibility:
The scheme allows the account holder to make partial withdrawals after the girl child turns 18 years old, for the purpose of higher education or marriage expenses. However, the withdrawal amount is limited to 50% of the balance at the end of the preceding financial year.
Latest updates:
Minimum deposit amount increased:
The government has increased the minimum deposit amount for the Sukanya Samriddhi Yojana from Rs. 250 to Rs. 500. This change came into effect from July 2018. The government has made this change to encourage parents to make larger contributions towards the future of their girl child.
Interest rate revised:
The interest rate for the Sukanya Samriddhi Yojana is revised every quarter by the government. The interest rate was revised to 7.6% per annum from April to June 2021. The government has kept the interest rate unchanged for the July to September 2021 quarter.
Penalty for non-contribution:
If the minimum deposit amount of Rs. 500 is not made in a financial year, the account is considered as a discontinued account. The account can be revived by paying a penalty of Rs. 50 per year along with the minimum deposit amount for the years the account was discontinued.
Transfer of account:
The Sukanya Samriddhi Yojana account can be transferred from one post office or bank to another, free of cost. The transfer can be made if the girl child or the parent/guardian is relocating to a different place.
Online account opening:
The Sukanya Samriddhi Yojana account can now be opened online by visiting the official website of the scheme. The online process is simple and convenient, and the account can be opened by providing the required details and uploading the necessary documents.
The Sukanya Samriddhi Yojana is a beneficial scheme for the welfare of the girl child in India
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