Introduction
Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme targeted at the welfare of the girl child in India. Launched by the Government of India as part of the Beti Bachao, Beti Padhao campaign in 2015, this scheme aims at promoting the financial security of the girl child. SSY not only encourages parents to save for their daughter’s future but also provides an attractive interest rate along with other benefits. In this article, we will delve into the details of Sukanya Samriddhi Yojana, its features, benefits, eligibility criteria, account opening procedure, deposit rules, premature withdrawal provisions, and much more.
Features of Sukanya Samriddhi Yojana
1. Eligibility Criteria
To open an SSY account, the girl child should be below 10 years of age. Parents or guardians can open this account in the name of the girl child.
2. Account Duration
The account matures after 21 years from the date of opening or when the girl child gets married after the age of 18.
3. Deposits
Minimum and maximum deposits allowed in a financial year are specified by the government and are subject to change. Currently, the minimum deposit is INR 250, and the maximum deposit is INR 1.5 lakh.
4. Interest Rate
The interest rate on Sukanya Samriddhi Yojana is reviewed and notified by the government quarterly. The interest is compounded annually and is higher than other savings schemes like PPF.
5. Tax Benefits
Contributions made to SSY are eligible for tax deductions under Section 80C of the Income Tax Act. Also, interest earned and the maturity amount are tax-free.
6. Account Operation
The account can be operated by the parent or guardian until the girl child reaches the age of 10. After that, the girl child can operate the account herself.
7. Partial Withdrawal
Partial withdrawals up to 50% of the balance at the end of the previous financial year are allowed for higher education purposes once the girl child attains the age of 18.
8. Premature Closure
In case of the death of the depositor (parent/guardian), premature closure is allowed, and the balance amount will be paid to the nominee.
Benefits of Sukanya Samriddhi Yojana
1. Financial Security
SSY ensures financial security for the girl child by providing a lump sum amount at maturity, which can be used for higher education, marriage, or any other major life event.
2. Higher Interest
The scheme offers a higher interest rate compared to other small savings schemes, making it an attractive long-term savings option.
3. Tax Benefits
The tax benefits under Section 80C of the Income Tax Act make it a tax-efficient investment option for parents or guardians.
4. Empowerment of Girl Child
By promoting the education and welfare of the girl child, SSY contributes to gender equality and empowerment.
5. Long-term Savings
SSY inculcates a habit of long-term savings and financial discipline among parents for the betterment of their daughter’s future.
Account Opening Procedure
To open an SSY account, one needs to visit a post office or authorized bank with the following documents:
- KYC documents of the parent/guardian
- Birth certificate of the girl child
- Account opening form
- Passport size photographs
Once the account is opened, deposits can be made either in cash, cheque, or demand draft.
How to Deposit in Sukanya Samriddhi Yojana
Deposits in the SSY account can be made through cash, cheque, demand draft, or online transfer. The modes of deposit may vary depending on the bank or post office where the account is held. It is essential to make timely deposits to keep the account active and benefit from the scheme’s full potential.
Premature Withdrawal Rules
Partial withdrawals are allowed after the girl child attains 18 years of age for higher education purposes. The withdrawal amount is limited to 50% of the balance at the end of the previous financial year. However, full withdrawal is permitted if the girl child gets married after the age of 18. Premature closure is also allowed in case of the death of the depositor.
Comparison with Other Savings Schemes
Compared to other savings schemes like Public Provident Fund (PPF) and Fixed Deposits (FDs), Sukanya Samriddhi Yojana offers higher interest rates, tax benefits, and a specific focus on the welfare of the girl child. While PPF is open to all individuals, SSY is exclusively for the girl child, making it a unique savings scheme in India.
Frequently Asked Questions (FAQs)
1. What is the maximum tenure of a Sukanya Samriddhi Yojana account?
The account matures after 21 years from the date of opening, making it one of the long-term savings options for the girl child.
2. Can more than one SSY account be opened for the same girl child?
No, only one SSY account can be opened for a girl child, and multiple accounts for the same individual are not allowed.
3. What happens if a minimum deposit is not made in a financial year?
Failure to deposit the minimum amount specified for a financial year can attract a penalty, and the account may become inactive.
4. Can NRIs avail of the benefits of Sukanya Samriddhi Yojana for their daughters?
No, NRIs are not eligible to open an SSY account for their children. The scheme is exclusively for resident Indian individuals.
5. Is the interest rate on SSY fixed, or does it vary?
The interest rate on Sukanya Samriddhi Yojana is not fixed and is subject to changes as notified by the government on a quarterly basis.
6. What are the documents required to withdraw funds from an SSY account for higher education?
To make a partial withdrawal for higher education, KYC documents of the parent/guardian, along with a bonafide certificate from the educational institution, are required.
7. Can the girl child operate the SSY account before turning 18?
No, the girl child can only operate the account after reaching the age of 18. Until then, the account is managed by the parent or guardian.
8. Is there a limit on the number of deposits that can be made in an SSY account in a financial year?
While there is no limit on the number of deposits, the total amount deposited in a financial year cannot exceed the maximum limit set by the government, which is currently INR 1.5 lakh.
9. Can the SSY account be transferred from one bank or post office to another?
Yes, the SSY account can be transferred from one authorized bank or post office to another, subject to certain applicable procedures.
10. Are loans available against the SSY account balance?
No, loans cannot be availed against the balance in a Sukanya Samriddhi Yojana account. The funds deposited are meant for the welfare and future financial security of the girl child.
In conclusion, Sukanya Samriddhi Yojana is a beneficial savings scheme designed to secure the future of the girl child through long-term investments, attractive interest rates, and tax benefits. By encouraging parents to save for their daughter’s education and marriage, the scheme plays a significant role in empowering the girl child and promoting financial inclusion in India. Understanding the features, benefits, and operational aspects of SSY is crucial for parents and guardians looking to secure a bright future for their daughters.
