The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme introduced in 2015 to empower parents in India to secure the future of their girl children. Designed to encourage savings for education and marriage, SSY offers various benefits. Let’s delve into the key aspects of this scheme:
Eligibility:
- Open an account for a girl child up to 10 years old.
- Only one account can be opened per girl child.
Account Features:
- Minimum Deposit: ₹250 per year.
- Maximum Deposit: ₹1.5 lakhs per year.
- Interest Rate: Presently at 8.2% per annum (subject to change).
- Investment Period: Deposits are allowed until the girl child turns 14, and the account matures after 21 years or upon the girl’s marriage after turning 18, whichever is earlier.
- Tax Benefits: Deposits qualify for deduction under Section 80C, and interest earned is tax-free under Section 10.
Benefits:
- Attractive interest rate: Higher than most savings schemes.
- Tax benefits: Promotes long-term savings while saving on income tax.
- Secured investment: Backed by the Government of India.
- Empowers girl child: Provides financial security for their future.
Additional Points:
- Penalty for non-compliance: A ₹50 penalty is charged for not making the minimum annual contribution of ₹250.
- Account transfer: SSY accounts can be transferred between authorized banks and post offices in India.
- Premature closure: Permitted only in case of the girl child’s marriage after turning 18.
Resources:
- National Savings Institute (NSI) (https://www.nsiindia.gov.in/)
- MyScheme (https://www.myscheme.gov.in/)
Additional Considerations:
- Setting up an SSY account: Open at any authorized bank or post office with the girl child’s birth certificate, address proof, and your identity proof.
- Investment strategy: While no minimum frequency is mandated, spreading contributions throughout the year is recommended for compounding interest.
- Long-term commitment: SSY is a long-term investment; consistent annual contributions ensure no penalties and maximize benefits for your daughter.
