Sukanya Samriddhi Yojana, In a progressive step towards securing the future of the girl child, the Government of India introduced the Sukanya Samriddhi Yojana (SSY) on January 22, 2015, under the Beti Bachao, Beti Padhao initiative. This commendable scheme aims to promote the welfare of the girl child by providing a long-term savings and investment avenue for her education and marriage expenses. Sukanya Samriddhi Yojana In this article, we will explore into the key aspects of the Sukanya Samriddhi Yojana, its benefits, eligibility criteria, and how it plays a key role in shaping the dreams of millions of young girls across the nation.
Sukanya Samriddhi Yojana Empowering the Girl Child for a Bright Future
Understanding Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana is a small savings scheme that aims to encourage parents and guardians to save for the future of their girl child from an early age. The scheme operates under the province of the Ministry of Finance and is made available through designated public and private sector banks across India. The SSY is part of the government's efforts to enhance financial inclusion and foster gender equality.
Key Features of Sukanya Samriddhi Yojana
1) Account Opening:
Parents or legal guardians can open an SSY account for a girl child below the age of 10 years. Only one account is allowed per child, and parents can open a maximum of two accounts for their two daughters. The account can be opened with a minimum deposit of Rs. 250, and subsequent deposits can be made in multiples of Rs. 100.
2) Tenure and Maturity:
The SSY account has a tenure of 21 years from the date of opening or until the girl child's marriage, whichever occurs earlier. After the completion of the tenure, the account matures, and the accumulated collection along with interest is paid to the account holder.
3) Interest Rate:
The interest rate on Sukanya Samriddhi Yojana is not fixed and is subject to change every quarter based on government notifications. Historically, the interest rate has been relatively higher than other small savings schemes, making it an attractive investment option for parents.
4) Tax Benefits:
Contributions made to the SSY account are eligible for tax benefits under Section 80C of the Income Tax Act, allowing parents to claim deductions up to a specified limit. Furthermore, the interest earned and the maturity amount are exempt from tax, making the scheme tax-free in the hands of the account holder.
5) Partial Withdrawal:
The SSY account allows partial withdrawal when the girl child attains the age of 18 years, provided she can demonstrate valid reasons such as higher education or marriage. However, the withdrawal is capped at 50% of the balance at the end of the preceding financial year.
6) Account Transfer:
In case of relocation, parents can transfer the SSY account from one bank or post office to another without any charge. This feature ensures that the scheme remains accessible regardless of geographical constraints.
Eligibility Criteria for Sukanya Samriddhi Yojana To open an SSY account, the following eligibility criteria must be met:
1 Citizenship
The scheme is available to only Indian citizens, ensuring that the benefits are exclusively directed towards the welfare of girls in the country.
2 Age Limit
The girl child must be below the age of 10 years at the time of account opening. The age limit ensures that parents start saving early for their daughter's future needs.
3 Document Requirements
Parents or guardians need to submit essential documents such as the birth certificate of the girl child, proof of identity, proof of residence, and passport-sized photographs to open an SSY account.
Advantages of Sukanya Samriddhi Yojana
1 Empowerment of the Girl Child: The SSY promotes the welfare of the girl child by empowering parents to invest in their daughter's future without financial constraints. This ensures that girls receive the necessary education and opportunities to pursue their dreams.
2 Higher Returns and Tax Benefits: The SSY offers attractive interest rates, often higher than other small savings schemes, making it an ideal investment avenue for parents looking to secure their child's financial future. Additionally, the tax benefits on contributions, interest, and maturity amount make it a tax-efficient savings instrument.
3 Long-term Savings: With a lock-in period of 21 years, the scheme instills a disciplined approach to long-term savings, fostering financial planning and stability in the family.
4 Financial Security: The scheme provides financial security for the girl child, especially during her higher education or marriage, when the partial withdrawal option becomes available.
1. How does the Sukanya Samriddhi Yojana (SSY) work?
The Sukanya Samriddhi Yojana is a small savings scheme designed to encourage parents to save for the future of their girl child from an early age. Parents or legal guardians can open an SSY account for a girl child below the age of 10 years. The account can be opened with a minimum deposit of Rs. 250, and subsequent deposits can be made in multiples of Rs. 100. The scheme has a tenure of 21 years from the date of opening or until the girl child's marriage, whichever occurs earlier. During this period, the account accumulates interest at a rate set by the government, subject to quarterly changes. Once the tenure is complete, the account matures, and the accumulated corpus along with interest is paid to the account holder. The SSY account allows partial withdrawal when the girl child turns 18 years old, for purposes like higher education or marriage, limited to 50% of the balance at the end of the previous financial year.
- SSY is a small savings scheme for the girl child below the age of 10 years.
- The account has a tenure of 21 years or until the girl child's marriage, whichever is earlier.
- Partial withdrawal of up to 50% of the balance is allowed for higher education or marriage after the girl child turns 18.
2. What are the eligibility criteria for opening an SSY account?
To open an SSY account, certain eligibility criteria must be met. The scheme is available only to Indian citizens, ensuring that its benefits are exclusively directed towards the welfare of girls in the country. The girl child must be below the age of 10 years at the time of account opening to encourage early savings for her future needs. Parents or guardians need to submit essential documents such as the girl child's birth certificate, proof of identity, proof of residence, and passport-sized photographs for the account's opening.
- The scheme is available only to Indian citizens.
- The girl child must be below the age of 10 years at the time of account opening.
- Essential documents like birth certificate and proof of identity are required for opening the account.
3. What are the key features of Sukanya Samriddhi Yojana?
The Sukanya Samriddhi Yojana comes with several key features to support the financial security of the girl child. Firstly, parents can open only one SSY account per child and a maximum of two accounts for their two daughters. The minimum deposit to open the account is Rs. 250, and subsequent deposits can be made in multiples of Rs. 100. The scheme has a tenure of 21 years or until the girl child's marriage, providing a long-term savings avenue. The interest rate is not fixed and is subject to quarterly changes based on government notifications, historically offering attractive rates compared to other small savings schemes. One of the significant advantages of the SSY is its tax benefits, where contributions made are eligible for deductions under Section 80C of the Income Tax Act. Additionally, the interest earned and the maturity amount are exempt from tax, making the scheme tax-free in the hands of the account holder. The SSY account allows partial withdrawal when the girl child turns 18 years old, provided there are valid reasons like higher education or marriage, with the withdrawal capped at 50% of the balance at the end of the previous financial year. Moreover, the account can be transferred from one bank or post office to another without any charge, ensuring accessibility even if the account holder relocates.
