The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme specifically designed to promote the financial well-being of girl children in India. Launched in 2015 under the Beti Bachao, Beti Padhao initiative, the SSY aims to encourage parents to invest in their daughters' future by providing attractive interest rates and tax benefits.
Eligibility
To open an SSY account, a parent or legal guardian can do so for a girl child who is below 10 years old. Only one account can be opened for a girl child.
Account Opening
SSY accounts can be opened at designated post offices or authorized commercial banks. The initial deposit requirement is just ₹250, and subsequent deposits can be made in multiples of ₹50. The maximum annual deposit limit is ₹1.5 lakh per girl child.
Interest Rate
The current interest rate for SSY accounts is 7.6% per annum, which is compounded annually. This rate is higher than most other savings schemes, making it an attractive option for long-term investments.
Tax Benefits
SSY contributions qualify for tax deduction under Section 80C of the Income Tax Act. This means that parents can reduce their taxable income by the amount they invest in their daughter's SSY account.
Maturity
SSY accounts mature after 21 years from the date of account opening. At maturity, the account holder receives the entire accumulated amount, including the principal and interest.
Partial Withdrawals
Partial withdrawals from SSY accounts are allowed after the girl child attains the age of 18 years. These withdrawals can be used for specific purposes such as higher education and marriage expenses.
How to Apply
To apply for an SSY account, you will need to visit a designated post office or authorized commercial bank and fill out the application form. You will need to provide the following documents:
Proof of identity of the parent or guardian
Proof of address of the parent or guardian
Birth certificate of the girl child
Two passport-sized photographs of the girl child
Calculating Maturity Amount
If a person starts investing in an SSY account from the birth of their girl child, they can expect to accumulate a significant amount by the time the girl reaches maturity.
Using the current interest rate of 7.6%, a monthly deposit of ₹1,500 (₹18,000 per year) will result in a maturity amount of approximately ₹7.5 lakhs after 21 years. This amount can be a valuable contribution to the girl child's higher education, marriage, or other future expenses.
The maturity amount of the Sukanya Samriddhi Yojana (SSY) is 100% tax-free. This means that you will not have to pay any income tax on the amount you receive when the account matures. This is a significant benefit, as it can make the SSY a very attractive investment option for parents of girl children.
What if girl child goes to jail ? 🤣
My daughter is 11 years old. Can i apply ?
What if girl child dies before Maturity?
For NRI ?