What is Sukanya Samriddhi Yojana?

Having schemes that work in the overall favor and development of the girl child is a blessing! SSY - Sukanya Samriddhi Yojana is one such scheme. On 22nd January 2015, this particular scheme was launched by our respected prime minister of India - Mr. Narendra Modi. The Sukanya Samriddhi Yojana came into the picture as a part of the campaign named "Beti Bachao, Beti Padhao."

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The article below will provide a deep understanding of what all the Sukanya Samriddhi Yojana is concerned about.

What is  Sukanya Samriddhi Yojana?

The Sukanya Samriddhi Yojana is a savings scheme as the name suggests! It is meant to provide overall financial independence to a girl child such that she can live the life of her dreams in the future. It gives a chance to the woman to build her dreams and manifest them into reality by having financial abundance. The small savings starting from the childhood of a girl will turn into a big lump sum amount which would feel nothing less than a miracle. 

The opening of the account under this scheme shall be done at any nearby post office. The government has also facilitated the switching of the savings scheme account from one bank to another bank. 

What are the characteristics of the    Sukanya Samriddhi Yojana?

There are huge features associated with the Sukanya Samriddhi Yojana. Let's learn them below -

  • The minimum deposit that needs to be done for the Sukanya Samriddhi Yojana stands at INR 250. Apart from this, the maximum can go up to INR 1,50,000. It has been further reduced to 250 from 1000 so that the large pool of people can benefit from it.
  • The Sukanya Samriddhi Yojana has given the authorization to the parents of the girl or her caretakers for account opening. 
  • The tax benefits are available as stated in Section 80C. It is declared under the income tax act, 1961. 
  • If a parent has 2 girls as their child, they can open two accounts for them simultaneously. Moreover, if a parent has 3 girls as triplets, the 3 accounts are allowed to be opened simultaneously.
  • There exists the Sukanya Samriddhi Scheme calculator that allows you to calculate the maturity value of amounts, monthly savings, and much more.
  • A girl child needs to be of less than 10 years old for being eligible to open the account under the Sukanya Samriddhi Scheme. However, the scheme allows you to have a grace period of 1 year. 
  • The Sukanya Samriddhi Yojana holds an interest rate of almost 8.5% for the financial year 2018 to 2019.
  • The account can be closed if the account holder confronts death. 

What privileges does Sukanya Samriddhi Yojana provide? 

Extremely useful privileges are provided by the Sukanya Samriddhi Scheme for the girl child. To grasp an understanding of this, pay attention to the pointers discussed beneath -

  1. Tax Benefits

Under section 80C of the Income Tax Act, 1961, - the tax benefit applies to the account holder of the Sukanya Samriddhi Yojana. Apart from this, the financial security of the account is also being promised. A maximum of INR 1,50,000 can be availed as the tax exemption amount. 

  1. Premature Withdrawal

The maturity period of the Sukanya Samriddhi Scheme starts as soon as the account holder touches the age of 21 years or if she gets married. For the matter of fact to withdraw the amount from the account opened in Sukanya Samriddhi Scheme, the girl needs to be of at least 18 years of age. Also, note that only a half amount withdrawal I.e, 50% of the total amount in the account is allowed and this amount must be strictly used for the higher education of a girl. 

  1. Maturity Benefits 

After the maturity of the Sukanya Samriddhi Scheme account, the girl is eligible to have a balance in her account which is equivalent to the total of the amount deposited, and interest on that particular amount. This can be directly paid to the girl child. It can be used for her better future, marriage, higher education, and aimed to provide overall financial freedom. 

  1. High-Interest Rate

For all the savings schemes to date, the Sukanya Samriddhi Scheme provides the highest interest rate on deposits I.e., 8.5% - meant for the 2018 to 2019 financial year. The interest rate is subjected to alteration every upcoming quarter for a particular year. Despite all such changes, the rate of interest remains the highest of all.

Notable Details regarding Sukanya Samriddhi Yojana

  • The guardians of the girl child who are not residents of India are not allowed to open the account under Sukanya Samriddhi Scheme.
  • You need to give a few INR 50, in case you lose the passbook and desire to get a new passbook. 
  • You as a guardian need to pay under this scheme for at least 14 years before the starting age of account opening.
  • All the identification verification documents will be required at the time of opening the account. It includes the name of the girl child, parent's name, the amount deposited initially, Pan card, the voter ID card, Address proof, birth certificate, date of birth, etc.
  • You can issue the account under the Sukanya Samriddhi Scheme even if you have a girl child who is adopted. 
  • Crediting of the Interest will stop if you fail to withdraw the funds once the girl reaches her maturity period of 21 years.
  • You can deposit the amount in multiples of 100 every year.

Key takeaways

What's better than getting a higher rate of return on smaller investment schemes. Empowering the girl child is the most vital thing to do. The government has taken extremely marvelous steps by bringing up such schemes meant for the overall welfare of the girl child. It allows the parents or the caretakers of the girl child to save enough for the future of the girl. By investing in such schemes, you can reshape the future of your girl child helping her to have a good life ahead. 



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