Sukanya Samriddhi Yojana (SSY)
The Government of India, under its ‘BETI BACHAO AND BETI PADHAO’ initiative, launched Sukanya Samriddhi Yojana (also known as SSY). This scheme is for the benefit of the parents and legal guardians of a girl child who are always worried about their daughter’s higher education and marriage expenses. The benefits of this scheme encourage parents and legal guardians of girl children to save for the future needs of their daughters and provide them with good quality higher education.
Parents and legal guardians of a girl child who is under the age of 10 years can avail the benefit of this scheme. One account per girl child can be opened. Maximum 2 accounts can be opened by each family. However, in the case of twin children or triplets, more than 2 accounts can be opened by a single family.
- The account can be opened by the parents or the legal guardians anytime for a girl child whose age is less than 10 years on the date of opening the account.
- This scheme is for a total of 21 years from the date of opening the account or till the marriage of the girl child. Out of these 21 years, investments are to be done only for 15 years. For the remaining 6 years, the depositor will earn interest in the amount invested.
- After the girl child turns 18, she will become the owner of the account.
- The minimum amount of investment starts with Rs. 250 per Financial Year and the maximum amount of investment allowed is Rs. 1,50,000. Any investment above Rs. 1,50,000 will not accrue interest and can be taken back by the depositor.
- If the depositor fails to maintain the minimum deposit of Rs. 250, then a penalty of Rs. 50 will be charged per Financial Year and the account will be deemed as a defaulted account. However, the account can be regularized after payment of a penalty of Rs. 50.
- Investments in SSY can be done from most of the banks and post offices. It offers the flexibility of transferring the account from one bank or post office to another bank or post office as per the convenience of the depositor without incurring any additional charge.
Withdrawal can be done from SSY under any of the following situations:
- The account has become mature i.e., 21 years have been completed.
- Girl child has turned 18. However, only partial withdrawal is allowed here. Girl child can withdraw 50% of the balance available in the account to meet her higher educational expenses.
- Marriage of the girl child.
Amount invested in SSY can be withdrawn only in the above-mentioned cases. However, an exception has been granted.
After 5 years of opening the account, in case of serious illness or the death of the parent or the legal guardian, the account can be closed prematurely. Post Office Saving Account interest rate will be applicable from the date of death till the date of final payment under the scheme.
Investing in SSY comes with the following benefits:
- High-Interest Rate: Currently (as of 2021), Sukanya Samriddhi Yojana offers an interest rate of 7.6% per annum which is far better than most of the savings schemes currently available.
- Tax Benefits: Investments in SSY offer tax benefits under Section 80C up to the investment of Rs. 1,50,000 per Financial Year. Also, the interest earned and the maturity value are exempted from tax.
- Government Backing: Returns and repayment of maturity value are guaranteed as this scheme is backed by the Government of India.
- Future Planning: Parents and legal guardians of a girl child can plan for the future in advance by saving and investing from a very early stage.