Introduction
Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme in India introduced by the Government of India as part of the “Beti Bachao, Beti Padhao” campaign. The scheme is specifically designed to promote the welfare of the girl child and ensure her financial security for future education and marriage expenses.
Overview of Sukanya Samriddhi Yojana
Incorporated under the auspices of the Ministry of Finance, Sukanya Samriddhi Yojana provides a long-term investment option for parents of girls below the age of 10 years. The scheme offers attractive interest rates and tax benefits, making it a popular choice among investors seeking a secure and rewarding savings avenue for their daughters.
Current Interest Rate of Sukanya Samriddhi Yojana
As of October 2021, the interest rate offered on Sukanya Samriddhi Yojana accounts is 7.6% per annum. The interest is compounded annually and credited to the account at the end of each financial year. The rates are subject to periodic revision by the government based on prevailing market conditions and other economic factors.
Key Features of Sukanya Samriddhi Yojana
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Tenure: The scheme has a duration of 21 years or until the girl child marries after attaining the age of 18 years.
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Minimum and Maximum Deposit: The minimum annual deposit for SSY is Rs. 250, while the maximum deposit can go up to Rs. 1,50,000 in a financial year.
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Tax Benefits: Contributions made towards the scheme are eligible for tax deductions under Section 80C of the Income Tax Act, 1961.
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Partial Withdrawal: A partial withdrawal of up to 50% of the accumulated funds is allowed after the girl child attains the age of 18 years for higher education or marriage expenses.
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Account Operation: The account can be opened by the parent or legal guardian of the girl child and can be operated until the girl attains majority.
How to Open a Sukanya Samriddhi Yojana Account
- Visit the nearest post office or authorized bank branch.
- Fill out the account opening form with the necessary details.
- Submit the required documents such as the girl child’s birth certificate and address proof.
- Make the initial deposit to activate the account.
- The passbook will be issued, reflecting the deposited amount and interest earned.
Comparison with Other Investment Avenues
When compared to other investment options available in the market, Sukanya Samriddhi Yojana stands out due to its high-interest rates, tax benefits, and the specific focus on securing the financial future of the girl child. While other investment avenues may offer potentially higher returns, they may not provide the same level of security and guaranteed returns as SSY.
FAQs
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Can I open more than one Sukanya Samriddhi Yojana account for my daughters?
No, a parent or legal guardian can only open one SSY account for a maximum of two girl children. -
What happens if I fail to deposit the minimum required amount in a financial year?
A penalty of Rs. 50 is levied for each missed payment, and the account may be declared as dormant if consecutive payments are not made. -
Can NRIs open a Sukanya Samriddhi Yojana account for their daughters?
No, the scheme is specifically designed for the benefit of Indian residents, and NRIs are not eligible to open an SSY account. -
Is premature closure of the account allowed under Sukanya Samriddhi Yojana?
In case of unforeseen circumstances such as the death of the girl child, premature closure of the account is permitted with proper documentation. -
How is the interest calculated on Sukanya Samriddhi Yojana deposits?
The interest is calculated on the minimum balance between the 10th and last day of the month and credited to the account annually.
In conclusion, Sukanya Samriddhi Yojana is a prudent investment option for parents looking to secure their daughter’s financial future. With its attractive interest rates, tax benefits, and long-term savings approach, SSY serves as a reliable avenue for achieving the dual objective of financial growth and social empowerment.