Sukanya Samriddhi Yojana (SSY) is a secure savings scheme backed by the Government of India introduced by Prime Minister Narendra Modi on 22 January 2015. This is beneficial for those having one or two girl children. SSY account can be opened for a girl child between the age of 0 to 10 years by their parents or legal guardians. As the SSY scheme is offered by the Gov. of India, so this makes this scheme an almost 100% secure savings scheme. Not only in terms of security but also the rate of interest offered for this scheme is pretty high than other govt. saving schemes. With consistent and systematic deposits over a period can produce a strong lump sum which would be beneficial for the girl for her later age.
This scheme is purely made for girls. The parent or a legal guardian having a girl child can open this Sukanya Samriddhi Yojana account for the daughter. The ideology is a parent will operate this account and after maturity, their girl child will receive the maturity benefits. But there are some restrictions on opening SSY accounts:
One can open Sukanya Samriddhi Yojana (SSY) account by visiting the nearest banks or post office and submit necessary documents including photographs along with the account opening form. As of now, the application can be done only in offline mode. Online SSY account opening is not presently available. However, if you don’t have a bank account you can still open the SSY account in Post Office.
SSY provides account transfer flexibility. If required, you can transfer the account to another bank or post office at any time. As of now the transfer of account is completely free of cost.
Well, you can start with a minimum of Rs. 250. The installment must be more than or equal to Rs. 250 and Multiple of 100. Maximum Rs. 1.5 lakh can be deposited in a financial year. It is mandatory to deposit at least once a year. A maximum of 12 deposits is allowed in a financial year. The deposit window will be open until 15 years of account opening. Completion of 15 years no further deposits will be allowed and the account will be held for the next 6 years until its maturity. Not maintaining an account can be deactivated. However, you can reactive it by paying minimum dues along with a nominal fine of Rs.50.
The girl child operates the account when she attains 18 years. The account gets matured after 21 years. But at the age of 18 years, 50% will be deducted for an educational purpose. Invested money also be deducted for a medical purpose for that account holder (life and death issue). At the age of 18 years, again the documents are submitted to the post office or bank.
The amount should be deposited until 15 years (15years is not the age of the girl) from the opening date. Thereafter, the invested amount will be on hold for 6 years. As an example, a girl child named Riya opens an SSY account at the age of ten years, installment needs to be deposited until her age reaches 25 (10+15) years. Riya’s SSY will be matured once she reaches 31 years of her age.
The maturity return corpus of SSY is completely TAX-free. Similar to the PPF account, the SSY account holder can get a TAX deduction of up to Rs. 1,50,000.00 Under Section 80C Income Tax Act.
As of October 2020, the rate of interest is 7.6% per annum. The Interest rate is much better than any other secure scheme exclusively for the girls. Accumulated yearly interest is credited into the account on 31st March of every year.
|Monthly Installment||Expected Returns|
|Rs. 1,000.00||Rs. 3,28,715 (3.2 Lakh)|
|Rs. 5,000.00||Rs. 16,43,577 (16.4 Lakh)|
|Rs. 10,000.00||Rs. 32,87,153 (32.8 Lakh)|
|Rs. 12,500.00||Rs. 41,08,941 (41 Lakh)|
(the expected returns are calculated based on the latest interest rate of 7.6% per annum.)
A Sukanya Samiriddhi Yojana account can be opened from BBI recognized banks or Post Office. Presently, only the offline mode of account opening is available.
Some rules or conditions need to be fulfilled during the preclosure of an SSY account.
The Sukanya Samriddhi Yojana (SSY) is a secure Government-backed savings scheme. This scheme is beneficial for girls for a better future. However, it consists of some drawbacks those are: