Sukanya Samriddhi Yojana – The government has come up with several schemes to promote daughters’ education. The Central Government’s Sukanya Samriddhi Yojana scheme is a good investment scheme for saving girls for higher education and marriage under the age of 10 years. Ministry of Finance is authorized to start Sukanya Samriddhi Yojana (SSY). Customers can open an account at any bank branch or post office by submitting their account opening documents. The account will be opened in any of the 42 nominated branches. The Sukanya Samriddhi Yojana (SSY) was launched by the Government of India on 21st January 2015 to improve the condition of daughters of the country. The goal of this scheme is to provide higher education to girls under Beti Bachao Beti Padhao Camp and the Government of India has started this scheme for big wedding expenses.

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• Account can be opened at any departmental post office or authorized banks in India.
• The opening amount for the SSY account is Rs.1000.
• Thereafter, deposits can be made in multiples of Rs.100.
• The minimum deposit into the account must amount to Rs.1000, the maximum limit is Rs.1,50,000 per year.
• The SSY account attains maturity in 21 years from the date of issue.
• However, the account holder is expected to pay into the account for a total duration of 14 years.
• A SSY account can be transferred from one post office/bank to another, anywhere in India.

Benefit – Sukanya Samriddhi Yojana

• The Sukanya Samriddhi Yojana provides its account holders will various benefits, such as:

• You can enjoy a flexible investment option with a deposit limit ranging anywhere between Rs. 250 and Rs. 1.5 Lakh per year.

• Against your investments, you can claim income tax benefits up to Rs. 1.5 Lakh under Section 80C.

• In case you open an account via a financial institution, you get access to an online Sukanya Samriddhi Account with which you can check your balance as and when required.

• Accountholders (girl child) can opt for a partial withdrawal of up to 50% of the balance after attaining 18 years of age.

Below- discussed are some of the features of Sukanya Samriddhi Yojana

• Minimum/ Maximum investment

A person has to make a minimum deposit of Rs. 1,000 per year under the scheme. A person can invest any number of times in multiples of Rs. 100 or as a lump sum of Rs. 1000 during the year. However, the maximum contribution in a year should not exceed Rs. 1.5 lacs.

• Premature withdrawal

A partial withdrawal up to 50% of the account balance is allowed for the purpose of higher education if the girl child has attain the age of 18 years or has passed the 10th standard.

• Premature closure

The premature closure of the account i.e. before 21 years of age is only allowed if the girl child gets married before the maturity period. However, the minimum age prescribedfor marriage is 18 years for a girl child in India.

• Nomination Facility

Nomination facility is not allowed in SSY. If the girl child dies, the account will be closed immediately and the balance will be paid to the guardian of the account holder.

• Can be opened for maximum two girls

Parent or a guardian of girl child is allowed to open one account for each child. However, the account can be opened for maximum two girls from the same family. A third girl child born cannot take the benefit of Sukanya Samriddhi Scheme.

• Duration of the deposit and the scheme

Parent or a guardian has to contribute for the scheme till the completion of 15 years from the date of opening the account. While the maturity tenure of the scheme is 21 years.

For example, if a person has started investing in the SSY account when his daughter’s age was 7, then he has to contribute to the account till she attains 22 years of age (7 years + 15 years). The account gets matured when she reaches 28 years (7+ 21). However, the account will be closed earlier if she gets married before 28 years of age.

• Scheme is not for NRI girl child

An NRI girl child is not allowed to invest in Sukanya Samriddhi Yojana. A girl child will be eligible for SSY only if she is an Indian resident. A girl child has to stay in India at the time of account opening until the maturity of the account. If a girl child changes the residential status during the tenure of the scheme then the account is immediately closed.

• Interest Rate

The rate of interest on SSY is not fixed and will keep changing in every fiscal year. The interest rate of the scheme is linked with Government 10 year’s bond yield. Normally,SSY scheme gives 50 basis point above the 10 years Government bond yield. Current interest rate earned on SSY is 8.6% P.A (FY 2016-2017) v/s 9.2% P.A (FY 2015-16) v/s 9.1% P.A (FY 2014-2015).

• No interest earned after maturity of account

No interest will be earned once the account complete the maturity tenure of 21 years from the date of account opening.

• Taxation

A person can get tax benefit up to 1.5 lakhs on investments in SSY under section 80C of the Income Tax Act. In addition to that, the interest earned and the maturity amount under the scheme is exempted from the tax i.e. it has EEE status.

How much one can accumulate by investing in SSY?

Below table exhibits how much a person can accumulate at the maturity of the scheme if he invests Rs. 1000 per month for 15 years and the scheme is offering an interest rate of 8.6% p.a

Sukanya Samriddhi Yojana Interest Rate 2021

Sukanya Samriddhi Yojana Interest Rate 2021 – One-year term deposit scheme will continue to earn an interest rate of 5.5 per cent, while the girl child savings scheme Sukanya Samriddhi Yojana account will earn 7.6 per cent.

Conclusion

Till, now there are no other small saving schemes offering higher interest rate than SSY. In addition to that, this is the only scheme which purely focuses on building a corpus for the education and marriage of a girl child in the country. The minimum yearly deposit required to start the scheme is also very nominal i.e Rs. 1,000 along with the tax benefit and pre- withdrawal facility. Thus, this scheme would serve as a financial backbone to parents or guardians of the girl child.

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