SSY Scheme: Sukanya Samriddhi Yojana is a savings scheme supported by the government launched for the benefit of the girl child. It is a part of Beti Bachao Beti Padhao scheme.
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Sukanya Samriddhi Yojana: If you want to secure the future of your daughter, then you can get good returns by investing in Sukanya Samriddhi Yojana. For this, Sukanya Samriddhi Yojana is a savings scheme supported by the government launched for the benefit of the girl child. it Save daughter, educate daughter Is a part of the scheme and parents of girl children below the age of 10 years can open the account of girl child under this scheme. This account can be opened in banks and post offices and the account can be operated till the age of 21 years or till she gets married after the age of 18 years.
Interest Rates for Sukanya Samriddhi Yojana 2023
Interest rates for Sukanya Samriddhi Yojana have been fixed at 7.6% per annum for January to March (fourth quarter, financial year 2022-23).
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Eligibility for Sukanya Samriddhi Yojana
- Sukanya Samriddhi Yojana account can be opened by parents or legal guardians only in the name of the girl child.
- The age of the girl child should be less than 10 years at the time of opening the account.
- Not more than one Sukanya Samriddhi account can be opened for a girl child.
- A family is allowed to open only two SSY accounts, i.e. one account for each girl child.
- If a girl child is born before the birth of twins or triplets or if triplets are born first, a third account can be opened.
- If a girl child is born after the birth of twins or triplets, then the third SSY account cannot be opened.
Benefits of Investing in Sukanya Samriddhi Yojana
- higher interest rate SSY is a scheme with a better rate of interest as compared to other government backed tax saving schemes like PPF. In this scheme, according to the first quarter of the financial year 2022-23, interest is being given at the rate of 7.6%.
- guaranteed return Since Sukanya Samriddhi Yojana is a government-backed scheme, it offers guaranteed returns.
- tax benefit 5 lakh annually under Section 80C of Sukanya Samriddhi Yojana. Tax exemption up to Rs.
- Invest at your convenience Any person can earn minimum Rs.250 in a year. and a maximum of Rs.1.5 lakh. Can deposit every year. This ensures that whatever be your financial status, you can invest in this scheme accordingly.
- benefit of compounding Sukanya Samriddhi Yojana (SSY) is a long term investment scheme as it offers the benefit of annual compounding interest. So, even if you invest less, you will get handsome returns in the long run.
- transfer easily SSY account can be freely transferred from one part of the country to another (bank/post office) in case of transfer of the parent/guardian operating the Sukanya Samriddhi account.
Sukanya Samriddhi Yojana (SSY) Deposit Limit
Any person can earn minimum Rs.250 in a year. and a maximum of Rs.1.5 lakh. Can deposit every year. You will have to deposit at least the minimum amount in the account every year for 15 years from the date of opening the account. After this, interest will continue to be received in the account till maturity.
Sukanya Samriddhi Yojana (SSY) period / maturity period
The duration of Sukanya Samriddhi Yojana is till the girl child turns 21 or gets married after the age of 18 years. However, you have to make this investment only for 15 years from the date of opening the account. After this, interest will continue to accrue in the account till maturity, even if no deposit is made in it.
Other Key Features of Sukanya Samriddhi Yojana (SSY)
- If an SSY account holder Rs.250. If the borrower is not able to make even the minimum deposit of Rs.10,000, then his account will be called as default account, but this default account will also continue to earn applicable interest till the date of maturity.
- 250 to the defaulted account before completion of 15 years from the date of opening of the account. + Can be revived by investing Rs.50 (penalty).
- A girl child can manage her account after the age of 18 years. After she turns 18, she can operate the SSY account after submitting all the necessary documents to the post office/bank where she has the account.
- Up to 50% of the money can be withdrawn from the account for further studies when the girl is above 18 years of age or after passing her 10th standard. The money can be received in lump sum or in installments. You can take money in installments only once in a year and for a maximum of five years.
Premature closure of SSY account
- The SSY account can be closed prematurely by the girl herself for the purpose of marriage after she turns 18. However, in addition to this, the account can be closed and the amount can be withdrawn in certain special cases:
- Sudden death of the account holder: In case of unfortunate death of the girl child registered in the scheme, the parent or legal guardian can withdraw the amount deposited in the account and the interest earned thereon.
- This amount will be deposited immediately in the account of the nominee. Apart from this, the parent or legal guardian has to submit the documents related to the death of the account holder which should be verified by the concerned authorities.
- Inability to continue account: If there is any such instruction from the Central Government that the investor is not eligible to invest in the account. So Sukanya Samriddhi account can be closed prematurely.
- If the depositor is facing any kind of financial difficulty due to investment in the account, then it can be closed. To close the account, it is necessary to take permission from the concerned authorities. It is to be noted that the account will be closed under Sukanya Samriddhi Yojana only in special cases like medical emergency.
Fill the application form like this
In the SSY application form, there is a need to provide some important information regarding the girl child, in whose name the investment will be made under the Beti Bachao Beti Padhao scheme. The information of the parent/guardian opening the account/investing on behalf of the girl child is also necessary.
- Name of the Girl Child (Primary Account Holder)
- Name of the parent/guardian who opened the account (Joint holder)
- initial deposit
- Cheque/DD number and date (used for initial deposit)
- date of birth of the girl child
- Birth certificate details of the primary account holder, (certificate number, date of issue, etc.)
- ID proof of the parent/guardian (Driving License, Aadhaar Card, etc.)
- Present and Permanent Address (as per ID document of parent/guardian)
- Information of any other KYC document (PAN card, Voter ID card, etc.)
- After this, the form will have to be submitted to the post office/bank along with the copies of all the necessary documents.
Taxes applicable under Sukanya Samriddhi Yojana (SSY)
From tax point of view, SSY investment is designated as EEE investment i.e. on which tax is not applicable. This means, the principal and interest as well as the maturity amount invested will not be taxed. Under the existing tax rules of Sukanya Samriddhi Yojana and under Section 80C of the Income Tax Act, 1961, the principal amount invested can avail tax deduction of up to Rs. 1.5 lakh per year in the annual income tax return.
Sukanya Samriddhi Yojana calculator
The return of any investment can be determined only on the basis of how much the investment has grown over time. Through the following example, you will know how you can get more profit by investing in Sukanya Samriddhi Yojana. Suppose girl child is born in 2020 and parents start SSY account in her name in the same year. This account will mature after 21 years when the girl child will get the total maturity amount.
- Annual investment = Rs.1 lakh.
- Investment Period = 15 years
- Total amount invested at the end of 15 years = Rs.15 lakhs.
- Interest rate for 1 year = 7.6%
- Interest at the end of 21 years = Rs.3,10,454.12.
- Maturity value at the end of 21 years = Rs.43,95,380.96.
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