Sukanya Samriddhi Yojana (SSY)
What is Sukanya Samriddhi Yojana (SSY)?
Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme specifically designed to promote the welfare and financial security of the girl child in India. It encourages parents or legal guardians to save and invest for their daughter's education and marriage expenses. SSY offers attractive interest rates and tax benefits.
Why Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana aims to empower parents to secure their daughter's future by providing a dedicated savings platform. It offers a safe and lucrative investment option with the objective of facilitating higher education and marriage expenses for the girl child. SSY provides financial stability and helps bridge the gender gap by encouraging long-term savings for girls.
Who can invest in Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana can be opened by parents or legal guardians on behalf of a girl child. The scheme is available for Indian residents only. The account can be opened anytime from the birth of the girl child until she attains the age of 10 years.
Benefits of Sukanya Samriddhi Yojana:
- High Interest Rates: SSY offers an attractive interest rate, which is currently around 7.6% per annum (as of July 2023). The interest is compounded annually and adds significant value to the investment over time.
- Tax Benefits: Contributions made to the SSY are eligible for tax deductions under Section 80C of the Income Tax Act, 1961, up to a maximum limit of Rs. 1.5 lakh per financial year. Additionally, the interest earned and the maturity amount are tax-exempt.
- Long-Term Investment: The scheme has a long tenure, extending until the girl child reaches the age of 21 years. This provides ample time for the investment to grow and accumulate a substantial corpus for the child's future needs.
- Partial Withdrawal Facility: Partial withdrawals up to 50% of the accumulated amount are allowed for the girl child's higher education needs once she reaches the age of 18 years.
Rate of Returns in Sukanya Samriddhi Yojana:
The interest rate for Sukanya Samriddhi Yojana is set by the government and is subject to periodic revisions. Currently, the interest rate is around 7.6% per annum (as of July 2023). It is advisable to check with the respective bank or post office for the most up-to-date interest rate information.
Where can one invest in Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana accounts can be opened at designated banks and post offices across India. These institutions act as authorized agents for the scheme and facilitate the opening, maintenance, and closure of SSY accounts.
Documents required to invest in Sukanya Samriddhi Yojana:
The documents typically required to invest in Sukanya Samriddhi Yojana include:
- Birth Certificate of the girl child.
- Identity Proof of the parent or legal guardian opening the account: PAN card, Aadhaar card, passport, voter ID, or driver's license.
- Address Proof: Aadhaar card, passport, utility bills, bank statement, or rental agreement.
- Passport-sized photographs.
- Filled SSY account opening form.
Points to consider before investing in Sukanya Samriddhi Yojana:
- Investment Limit: A minimum investment of Rs. 250 per year is required to keep the SSY account active. The maximum annual investment is Rs. 1.5 lakh per financial year.
- Account Operation: The SSY account is operated by the parent or legal guardian until the girl child reaches the age of 18 years. After that, the girl child can manage the account independently.
- Premature Closure: Premature closure of the SSY account is allowed under specific circumstances, such as the unfortunate demise of the girl child or other critical reasons.
- Account Transfer: SSY accounts can be transferred from one post office or bank to another, if required, within the country