A guide to Sukanya Samriddhi Yojana

A guide to Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana (SSY) is a special savings scheme designed by the Government of India to support the financial well-being of girl children. This scheme, initiated under the “Beti Bachao Beti Padhao” campaign, offers an attractive interest rate and tax benefits. In this guide, we’ll break down the key aspects of SSY in plain language for a better understanding.

Understanding Sukanya Samriddhi Yojana

SSY is a savings scheme that aims to promote the education and welfare of girl children. It is managed jointly by the Ministry of Women and Child Development(MWCD), the Ministry of Health and Family Welfare(MoHFW), & the Ministry of Human Resource Development. The primary objectives include:

  • Ensuring the protection and survival of girls.
  • Encouraging their participation in education and other fields.
  • Reducing gender discrimination.

Banks Offering Sukanya Samriddhi Yojana

Several banks, including State Bank of India, ICICI Bank, and Axis Bank, offer SSY accounts. This makes it convenient for parents or guardians to open and operate accounts for their girls’ children.

Features of Sukanya Samriddhi Yojana

Here are the key features of SSY:

  • Operation of the Account: Parents or guardians can manage the account until the girl reaches ten years old. After that, the girl takes over the operation once she turns 18.
  • Deposits: The minimum and maximum annual deposits are Rs. 500 and Rs. 1.5 lakh, respectively. Deposits can be completed in multiples of Rs. 100.
  • Duration: Deposits are made for 15 years, and the scheme matures after 21 years.
  • Transfer of Account: SSY accounts can be easily transferred between post offices and banks within India without any charges.

Eligibility and Documents Required

  • Parents or guardians can open an SSY account for a girl child up to the age of 10.
  • The girl child must be a resident Indian.
  • Up to two accounts can be extended for two girls in a family, and a third account can be opened in the case of twin girls.

Documents required include the SSY account opening form, the girl’s child’s birth certificate, ID proof and address proof of the depositor, and any other documents required by the bank or post office.

Benefits of the Sukanya Samriddhi Yojana Scheme

SSY offers various benefits:

  • Affordable Payments: A minimum balance of Rs. 250 per fiscal year is required to make it accessible. Deposits up to Rs. 1.5 lakh per fiscal year is allowed.
  • Educational Expenses Covered: 50% of the balance can be withdrawn for educational expenses with proper proof of admission.
  • Attractive Interest Rates: SSY accounts offer a high interest rate of 8% per annum.
  • Guaranteed Returns: Being a government-backed scheme ensures assurance of returns upon maturity.

Tax Benefits

SSY provides tax benefits under Section 80C of the Income Tax Act. Contributions up to Rs. 1.5 lakh, interest earned, and maturity or withdrawal amounts are exempt from income tax.

Opening and Transferring SSY Accounts

To open an SSY account, visit a bank or post office, fill out the application form, submit the required documents, and make the initial deposit. Transferring an account from the post office to the bank (or vice versa) is free and requires proof of residence change.

Closure and Withdrawal Rules

SSY accounts can be closed on maturity (21 years) or prematurely under specific circumstances, including the death of the girl child, marriage, medical treatment needs, or a change in the girl’s non-resident status.

Interest Rate and Calculations

The current interest rate is 8% per annum, compounded annually. The interest is calculated based on the lowest monthly balance between the fifth and last day of the month.

Sukanya Samriddhi Yojana serves as a valuable financial tool for securing the future of girl children in India. With its straightforward features, tax benefits, and the assurance of government backing, SSY stands out as an accessible and beneficial savings scheme for families across the country.

Understanding the details and making informed decisions can empower parents and guardians to make the most of this scheme for the betterment of their girl child’s future.

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