Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme designed to benefit girls in India. Launched by the Prime Minister of India, Narendra Modi, on January 22, 2015, this scheme aims to promote financial independence among girls and secure their future. The scheme offers attractive interest rates, tax benefits, and a long tenure, making it an ideal investment avenue for parents who wish to save for their daughter’s education, marriage, or other financial needs.
Key Features of Sukanya Samriddhi Yojana
* Eligibility: An SSY account can be opened for a girl child who is a resident of India and below the age of 10 years.
* Account Opening: The account can be opened at any post office or authorized branches of public and private sector banks.
* Minimum and Maximum Deposit: A minimum of ₹250/- is required to open an SSY account, and a maximum of ₹1.5 lakhs can be deposited in a financial year.
* Interest Rate: The interest rate on SSY is 8.2%, compounded annually.
* Tenure: The SSY account matures on the completion of 21 years from the date of account opening or on the marriage of the girl child, whichever is earlier.
* Partial Withdrawal: Partial withdrawal of up to 50% of the balance can be made after the girl child turns 18 years of age, for the purpose of higher education or marriage.
* Tax Benefits: The interest earned on SSY is tax-free. The deposits made towards SSY are eligible for deduction under Section 80C of the Income Tax Act.
Benefits of Sukanya Samriddhi Yojana
SSY offers several benefits to the girl child and her family, including:
* Financial Security: SSY provides a safe and secure investment option for parents to save for their daughter’s future. The long tenure of the scheme allows the accumulated funds to grow significantly over time.
* Attractive Interest Rate: The interest rate offered on SSY is higher than most other savings schemes, making it an attractive investment option.
* Tax Benefits: The interest earned on SSY is tax-free, and the deposits made towards the scheme are eligible for deduction under Section 80C of the Income Tax Act, up to a limit of ₹1.5 lakhs per financial year.
* Partial Withdrawal Facility: The partial withdrawal facility available after the girl child turns 18 years of age provides flexibility to meet unexpected financial needs, such as higher education or marriage expenses.
* Marriage Benefit: The scheme offers an additional benefit at the time of marriage of the girl child, where she can withdraw up to 50% of the balance in her account.
Documents Required for Opening an SSY Account
To open an SSY account, the following documents are required:
* Birth certificate of the girl child
* Identity proof of the parent or guardian
* Address proof of the parent or guardian
* Two passport-size photographs of the girl child
* PAN card of the parent or guardian (if available)
How to Open an SSY Account
To open an SSY account, follow these steps:
1. Visit a post office or an authorized branch of a public or private-sector bank.
2. Fill out the SSY account opening form.
3. Submit the required documents along with the initial deposit of ₹250/-.
4. The bank or post office will issue a passbook and an account number.
Conclusion
The Sukanya Samriddhi Yojana is a beneficial savings scheme that provides financial security and tax benefits to girls. With its attractive interest rate, long tenure, and flexible withdrawal facility, SSY is an ideal investment option for parents who wish to save for their daughter’s future. By investing in SSY, parents can contribute towards their daughter’s financial independence and empower her to achieve her dreams.
