Introduced on Jan. 22, 2015, by Prime Minister Narendra Modi, Sukanya Samriddhi Yojana is a saving scheme aimed at providing a girl child with a financially secure future. Sukanya Samriddhi Yojana is one of the multiple schemes developed as part of the Indian government's 'Beti Bachao, Beti Padhao' campaign.
Let’s get into some Sukanya Samriddhi Yojana details.
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Under the Sukanya Samriddhi Yojana, a girl child's natural parents or legal guardians can open a Sukanya Samriddhi Account in the child’s name. This account will be handled by them at least till the child turns 18. Once the girl child is of legal age, she can take control of her Sukanya Samriddhi Account, also referred to as SSA and manage it herself.
A girl child’s parents or legal guardians can open an SSA any time between the girl child’s birth till the time she turns 10. This account can be opened in post offices and authorised banks. The minimum deposit required to open and manage an SSA is ₹ 250 while the maximum deposit allowed in a financial year is ₹ 1.5 Lakh.
The Sukanya Samriddhi Yojana comes with a lock-in period of 21 years. For example, if the girl child is 4 years old when her parents/guardians open an SSA, it will mature when she reaches the age of 25 years. However, it is only mandatory to deposit for the first 15 years of the scheme. This means you can stop depositing after 15 years of opening an SSA and still acquire interest on the amount previously deposited for the next 6 years.
Benefits of the Sukanya Samriddhi Yojana Scheme
Minimum Deposit - The Sukanya Samriddhi Yojana Scheme allows a parent/guardian to deposit as little as ₹ 250 in a financial year. This makes the scheme easily accessible for people with a low income as well.
High Interest Rate - Sukanya Samriddhi Yojana, also known as SSY, provides a higher rate of interest than most small saving schemes. The current rate of interest since April 01, 2020, is 7.6% p.a.
Premature Withdrawal under Special Circumstances - Unlike many saving schemes, SSY allows premature withdrawal of funds under special circumstances. Enlisted below are some situations under which you can withdraw your funds before maturity:
After 5 years of maintenance, a premature withdrawal will be allowed if the bank or post office finds that maintaining the account is causing a financial burden on the girl child for medical reasons or due to the death of a parent/guardian.
You can also make a premature withdrawal for the higher education of the girl child once she turns 18.
Premature withdrawal is allowed if the girl child is getting married after attaining the legal age of marriage i.e. 18 years.
For any other reasons, you can directly contact the bank or post office and enquire about the procedure for premature withdrawal.
6 Years of deposit-free Interest - In SSY, it is only mandatory to make deposits for the first 15 years of the scheme. This means, after 15 years you don’t have to make any deposits, while you continue to receive interest on the existing balance.
Triple Tax Exemption - The SSY offers you some incredible tax-saving benefits as well. This is how you get triple tax exemption under this scheme:
Your deposit amount up to ₹ 1.5 Lakh is exempt from taxation under Section 80C of the Income Tax Act.
The annual compounded interest that you earn on this deposit is also tax-free.
Even the final amount received after maturity is completely tax-free.
Hence, this scheme is not only beneficial for the girl child but also helps the parent/guardian save taxes.
Now, all you need to get started with an SSA is, go to your nearest post office or authorized bank and submit the following documents:
Birth Certificate of the girl child
SSA Form(available at the post office and banks)
PAN/AADHAR of the Parent/Guardian
That’s it, your Sukanya Samriddhi Account will be opened.
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