Guide to Sukanya Samriddhi Yojana

Under the well-known campaign- ‘Beti Bachao, Beti Padhao,’ of the Government of India, a small savings scheme is launched namely “Sukanya Samriddhi Yojana- SSY”. Keeping in view the girl child, this scheme provides a long-term investment option to ensure her financial security. Not only the scheme offers attractive interest rates, but it also allows to avail added benefit of deduction under Section 80C of the Income Tax Act, making it a preferred choice for many guardians/ parents.

Empowering a girl child in a society where gender equality is a far-reaching dream is of utmost importance. The Government of India, recognising this need, came up with the Sukanya Samriddhi Yojana (SSY) in the year 2015. The primary motive of introducing the scheme was to empower the girl child by securing her future. This is done through encouraging their parents to save small amount for her education and marriage expenses.

Read ahead to delve deeper into the minute details of the Sukanya Samriddhi Yojana.

Features of Sukanya Samriddhi Yojana:

Account Opening	SSY account can be opened by a legal guardian or a parent of a girl child Age of the girl child can be below 10 years A maximum of two girl child in each family is allowed, with an exception for twins
Tenure	The account shall mature after 21 years from the date of opening or when the girl child gets marries after the legal age of 18 years.
Deposit	Minimum deposit of INR 250/- Maximum deposit of INR 150,000/- in a financial year is permissible
Withdrawal	On maturity after 21 years of opening the account Can withdraw up to 50% of the balance amount on attaining the age of 18 years The partial amount withdrawn early can only be utilised for either the girl child’s higher education or towards her wedding expenses.
Interest Rate	For FY 2024-25, interest rate of 8.20% annually prevails currently. The given interest rate is revised quarterly and is usually higher than any other small savings schemes
Tax Benefits	Any contribution made towards the SSY scheme account is eligible for deduction under Section 80C of the Income Tax Act Also, the maturity amount along with the interest earned over the period is tax free
Account Transfer	Easy transfer of the account is allowed on relocation of the girl child Transfer needs to be done through any authorised banks or post office across India

Benefits of Sukanya Samriddhi Yojana:

• Future Financial Needs- SSY provides a secure and disciplined way of saving for the financial needs of the girl child, such as her education and marriage.
• Higher Interest Rates- The scheme offers competitive interest rates, which are generally higher than other government-backed savings schemes.
• Tax Benefits to the contributor- Tax exemption on contributions, interest earned, and maturity amount makes SSY an attractive investment option for parents.
• Long-term benefit- With a tenure of 21 years, SSY encourages long-term financial planning and disciplined saving habits.
• Targets gender inequality- By promoting education and financial independence, SSY contributes to the overall empowerment of the girl child and gender equality.

Eligibility Criteria for Sukanya Samriddhi Yojana:

To open an SSY account, checkout the following eligibility criteria which must be met:

• For whom? –

The account can be opened for a girl child below the age of 10 years.

• Who can open the account? –

Only Indian residents are eligible to open an SSY account. Parents or legal guardians can open and operate the account on behalf of the girl child.

• How many accounts can one open? –

A maximum of two SSY accounts can be opened for each family, irrespective of the number of girl children.

How to Open a Sukanya Samriddhi Yojana Account?

Opening an SSY account is a simple process, and it can be done at any authorized banks or post offices present across India. The online mode of opening the account from the comfort of your home is still under development. Open account offline in simple steps as follows:

1. Visit the post office or nearest authorised bank
2. Get Sukanya Samriddhi Yojana account opening form. Fill the required details.
3. Submit the duly filled form to the concerned personnel along with the necessary documents, including birth certificate of the girl child, identity proof, address proof, etc..
4. Deposit the initial amount starting INR 250/- to get the account activated. The payment can be made either through cash, cheque or even Demand Draft.
5. Collect the passbook, once the account is opened. The passbook shall contain all the details pertaining to the account.

The initiative of Sukanya Samriddhi Yojana (SSY) is a great step by the Government of India to secure the future of the girl child. This safe and lucrative investment option encourages the parents to plan and save for their daughter’s higher education or the event of her marriage. The scheme with its attractive interest rates, tax benefits, and flexible withdrawal options, serves as a powerful tool for empowering the girl child and promoting gender equality in Indian society. Investing here will not only secure the financial future of the girl child but also contribute to her overall growth and development. Therefore, every parent should consider opening an SSY account for their daughter to ensure a brighter and more prosperous future.