Sukanya Samridhi Yojana or SSY, as the name suggests is a scheme for the welfare of the girl child in India. This scheme was launched by the Prime Minister Narendra Modi on 22nd January, 2015 in Panipat, Haryana. Having said this, this scheme runs under the campaign tagline ‘Beti Bachao, Beti Padhao’. This campaign is a national initiative jointly run by the Ministry of Women and Child Development, the Ministry of Health and Family Welfare, and the Ministry of Human Resource Development.
Sukanya Samridhi Yojana Purpose
The Sukanya Samridhi Yojana has four purposes:
– Firstly, it aims at making investments for the education of the girl child.
– Secondly, it aims at stopping gender discrimination against children and abolish the practice of sex determination.
– Thirdly, it aims at the protection and survival of girls
– Lastly, it also aims to make savings for the marriage of the girl in the future.
Therefore, this scheme has a purpose of encouraging the girl child’s parents to save for future education and marriage of their girl child.
How to invest in SSY
In order to invest in SSY, either of the guardians of the girl child can open SSY account at any participating bank or post office branch.
Note:
Every account holder shall have a single account under this Scheme.
Eligibility criteria to invest in SSY Account
The eligibility criteria to invest in SSY is as follows:
– Either of the guardian can open the SSY Account in the name of the girl child.
– The girl child’s age must be below 10 years on the date of opening of the account.
– There can be opening of only one account per girl child
– Per family, there can be opening of maximum two SSY accounts i.e., one for each girl child.
Exceptions where there can be opening of more than 2 SSY Accounts in a family
When a girl child is born before the birth of twin or triplet girls or if triplets are born at first, then there cannot be opening of third SSY.
Note:
If a girl child is born after the birth of twin or triplet girls, then there cannot be opening of a third SSY account.
Deposits under SSY
The guardian of the girl child can deposit the amount and operate the account till the girl child attains the age of 18. Further, the girl child on attaining 18 years shall have the sole right to operate her SSY account.
The minimum deposit amount for an SSY account is Rs.250 (this amount was previously Rs.1,000), and the maximum is Rs.1,50,000 in every financial year, up to 15 years. And, the mode of deposits can be either through cash, cheque, demand draft or online transfer.
Sukanya Samridhi Yojana Interest Rates
The government revises the interest rates on Sukanya Samridhi Yojana every quarter and the table below can help you in understanding the latest interest rates under SSY:
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Also Read: Best Ways to Save Your Taxes in 2024
Maturity Period of SSY
The maturity period of SSY is 21 years from the account opening or upon her marriage after attaining 18 years. However, contributions are to be made only for 15 years. Thereafter, the SSY account will continue to earn interest until maturity even when no deposits are made into it.
Benefits of opening of SSY:
Opening of SSY has multiple benefits and they are as follows:
Tax benefits of Sukanya Samriddhi Yojana
Investing in Sukanya Samridhi Yojana falls under EEE – Exempt, Exempt, Exempt Category. That is to say:
– Investments made in the SSY are eligible for tax deductions under Section 80C up to a limit of Rs 1.5 lakh. (First Exempt)
– The interest that accrues against this account which gets compounded annually is also exempt from tax under Section 10 of the Income Tax Act. (Second Exempt)
– The proceeds received upon maturity/withdrawal are also exempt from Income Tax. (Third Exempt)
Documents required for opening of SSY
– Birth certificate of the girl child
– Photo ID of applicant parent or legal guardian
– Address proof of applicant parent or legal guardian
– Other KYC proofs such as PAN, and Voter ID.
– SSY account opening form.
– Submission of a medical certificate in case multiple children are born under one order of birth.
– Any other documents that the bank or post office requests.