The Sukanya Samriddhi Yojana (SSY) scheme, launched by the Government of India as a part of the Beti Bachao Beti Padhao campaign, is a savings scheme designed specifically for the girl child’s education and marriage. This scheme, introduced in 2015, aims to empower families to secure the future of their daughters by providing a means to save and invest for their long-term expenses. In this article, we will explore the various benefits of the Sukanya Samriddhi Yojana scheme and how it can help families plan for their daughters’ future effectively.
Understanding Sukanya Samriddhi Yojana
Before delving into the benefits of the Sukanya Samriddhi Yojana scheme, let’s first understand how it works. The scheme allows parents or legal guardians to open an account in the name of a girl child below the age of 10 years. One can open only one account in the name of a girl child and a maximum of two accounts for two girls in a family. The account can be opened in any post office or authorized branches of commercial banks across India. The minimum annual deposit for the account is Rs. 250, while the maximum can go up to Rs. 1.5 lakh in a financial year. The account matures after 21 years from the date of opening or whenever the girl child gets married after the age of 18 years.
Benefits of Sukanya Samriddhi Yojana Scheme
Now, let’s take a closer look at the various benefits offered by the Sukanya Samriddhi Yojana scheme:
1. High Interest Rates
One of the key advantages of the SSY scheme is the attractive interest rates it offers. The interest rates are set by the government and are revised every quarter. The current interest rate for Q3 FY 2021-22 is 7.6%. The interest is compounded annually, making it a lucrative option for long-term savings.
2. Tax Benefits
Investments made under the Sukanya Samriddhi Yojana scheme are eligible for tax benefits under Section 80C of the Income Tax Act. The contributions made towards the scheme, the interest earned, and the maturity amount are all tax-free, making it a tax-efficient saving option for parents.
3. Long-term Saving
The scheme encourages long-term saving for the girl child’s future expenses, such as education and marriage. By investing consistently over the years, parents can build a substantial corpus that can help meet the financial needs of their daughters.
4. Low Risk
As the Sukanya Samriddhi Yojana scheme is backed by the government, it is considered a safe and secure investment option. The fixed interest rates and guaranteed returns provide stability and peace of mind to investors.
5. Partial Withdrawal Facility
Under the SSY scheme, partial withdrawal of up to 50% of the balance is allowed after the girl child attains the age of 18 years for higher education or marriage expenses. This feature provides flexibility to parents in managing unforeseen financial requirements.
6. Account Transferability
In case of relocation or shifting to a different city, the Sukanya Samriddhi Yojana account can be easily transferred to any post office or authorized bank branch across India. This ensures convenience and accessibility for the account holder.
7. Save Under Girl Child’s Name
By opening an SSY account in the name of the girl child, parents can instill a sense of financial discipline and responsibility in their daughters from a young age. It also promotes financial independence and empowers the girl child to secure her own future.
Frequently Asked Questions (FAQs) about Sukanya Samriddhi Yojana Scheme
1. Can I open multiple Sukanya Samriddhi Yojana accounts for the same girl child?
No, you can only open one SSY account in the name of a girl child. However, a maximum of two accounts can be opened for two different girl children in a family.
2. What is the penalty for not depositing the minimum amount in a financial year?
If the minimum annual deposit of Rs. 250 is not made in any financial year, a penalty of Rs. 50 will be charged.
3. Can I continue to deposit money in the Sukanya Samriddhi Yojana account after the girl child turns 18?
No, contributions to the SSY account can only be made until the completion of 15 years from the date of opening the account.
4. Is the maturity amount taxable under the Sukanya Samriddhi Yojana scheme?
No, the maturity amount and the interest earned on the SSY account are tax-exempt, making it a tax-efficient saving option.
5. Can NRIs open a Sukanya Samriddhi Yojana account for their daughters?
No, NRIs are not eligible to open a Sukanya Samriddhi Yojana account. Only resident Indian individuals can avail of this scheme.
6. Can I transfer my existing Sukanya Samriddhi Yojana account to another post office or bank?
Yes, you can easily transfer your SSY account to any post office or authorized bank branch across India in case of relocation or for convenience.
In conclusion, the Sukanya Samriddhi Yojana scheme offers a host of benefits for parents looking to secure their daughters’ future financially. With high interest rates, tax benefits, and flexibility in withdrawals, this scheme serves as an excellent long-term investment option for the girl child’s education and marriage expenses. By availing of this scheme, parents can pave the way for a brighter and financially secure future for their daughters.