Sukanya Samriddhi Yojana (SSY Yojana) – A secure stipend for the future of girls

The Sukanya Samriddhi Yojana, initiated by the Government of India, is a highly regarded and secure savings program specifically tailored to support the educational and matrimonial expenses of girls. This scheme is a part of the ‘Beti Bachao, Beti Padhao’ campaign. The main objective of this scheme is to empower girls, make them self-reliant and provide them with financial assistance for their future education and marriage.

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana is a long-term savings scheme that can be opened only for girls below the age of 10. Prime Minister Narendra Modi launched this scheme on 22 January 2015. In this, parents or legal guardians can open an account at a post office or an authorized bank.

Features of Sukanya Samriddhi Yojana-

1. Account opening age: Before the girl turns 10 years.
2. Tenure: 21 years from the date of account opening or till the girl’s marriage.
3. Investment limit: Minimum- ₹250 per annum, Maximum- ₹1.5 lakh per annum
4. Interest rate: Around 8% – Government decides the rate every quarter.
5. Tax exemption: Exemption up to ₹1.5 lakh under Section 80C of the Income Tax Act.
6. Place of management: Account can be opened in all post offices and some nationalised/private banks.

Benefits of Sukanya Samriddhi Yojana-

1. High Interest Rate: Higher interest compared to other savings schemes.
2. Tax Free Scheme: Investment, interest and maturity amount are completely tax free.
3. Government Guarantee: Safe and assured scheme.
4. Withdrawal for girls’ education: Withdrawal for higher education is possible after 18 years.
5. Online Banking Facility: Some banks offer the facility to operate the account online.

How to open an account?

Documents required to open a Sukanya Samriddhi Yojana account:

• Birth Certificate of the girl child
• Parent’s Aadhar Card / PAN Card / Identity Card
• Address Proof
• Passport Size Photo

Some conditions of the scheme-

• Each girl is allowed to open only one account.
• This account can be transferred anywhere in India.
• A minimum deposit of ₹250 is required to be made in the account initially. Thereafter, any amount can be deposited in multiples of ₹100.
• The girl can operate her account on her own after she turns 10 years.
• The account permits a 50% withdrawal at the age of 18 for the purpose of pursuing higher education.
• After this period, the account will earn only the applicable interest rate.
• If the account is closed, it will not earn interest at the prevailing rate.
• If the girl is above 18 years of age and married, normal closure is allowed.

For parents-

• Only a biological parent or legal guardian is permitted to establish an account on behalf of a female minor.
• In the event of twins or triplets, a parent or legal guardian is permitted to establish three separate accounts.
• The account holder must be an Indian citizen and resident in India at the time of opening the account and must remain so till maturity or closure of the account.
• The account will reach maturity upon the completion of twenty-one years from the date it was opened.
• If the account holder submits on the application proof of age confirming that the applicant is not less than eighteen years of age on the date of marriage, final closure of the account may be permitted before the completion of the twenty-one years.
• Provided that no such premature closure shall be allowed before one month before the date of marriage or after three months from the date of such marriage.
• Upon reaching maturity, the account balance along with the accrued interest will be disbursed to the account holder, provided that the account holder requests account closure and presents valid documentation verifying her identity, residence, and citizenship.
• No interest shall be paid after completion of twenty-one years from the date of opening the account.

Conclusion-

Sukanya Samriddhi Yojana is a financially secure, high interest yielding and tax free scheme of the Government of India, which is ideal for a bright future for girls. If you have a daughter under the age of 10, consider opening a Sukanya Samriddhi Account in her name today.

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