Sukanya Samriddhi Account

What is Sukanya Samriddhi Account?

The Sukanya Samriddhi Account is a government savings scheme in India specifically designed to promote the betterment of the girl child. It was launched to help parents or guardians of a girl child to save funds for higher education and other expenses of the girl child. It falls under the "Beti Bachao, Beti Padhao" campaign. Parents or legal guardians can open this account for their girl child until she turns 10 years old. The account offers an attractive interest rate and tax benefits. Deposits qualify for deduction under Section 80C of the Income Tax Act, and the interest earned is completely tax-free. This makes it a great way to save for your daughter's future needs like education or marriage.

Features of Sukanya Samriddhi Yojana

• Minimum deposit of ₹250 per year.

• Maximum deposit of ₹1.5 lakh per year.

• Deposits can be made for a maximum of 15 years from account opening.

• The account continues to earn interest even after deposits stop.

• The account matures on completion of 21 years from the opening date.

• Premature closure is allowed for the girl's higher education after she turns 18.

• Partial withdrawal for education purposes is permitted under specific conditions.

• Offers competitive interest rates (currently 8.2% as of July 2024).

• Deposits up to ₹1.5 lakh qualify for tax deduction under Section 80C of the Income Tax Act.

• Interest earned on the deposit is tax-free.

• The maturity amount is also tax-free.

Benefits of Sukanya Samriddhi Yojana Account 

Here are some benefits of the Sukanya Samriddhi Yojana acccount:

• High Interest Rate: SSY accounts currently offer one of the highest interest rates among small savings schemes in India.

• Triple Tax Benefit: SSY boasts a unique "EEE" tax benefit. This means:

  • Investments made towards the account qualify for a deduction under Section 80C of the Income Tax Act, up to a maximum of Rs. 1.5 lakh annually.

  • The interest earned on the deposit is completely tax-free.

  • Even the maturity amount you receive is not taxed.

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• Flexible Investment Options:

  • The minimum deposit amount is just Rs. 250, making it accessible to people with different financial backgrounds.

  • You can invest a maximum of Rs. 1.5 lakh per year.

  • Deposits must only be made for 15 years from the account opening date. The account continues to earn interest even after that.

• Partial Withdrawal Facility: After your daughter turns 18, you can withdraw up to 50% of the balance for her higher education expenses.

• Long-Term Security: With a maturity period of 21 years from the account opening date, the SSY ensures a long-term financial plan for your daughter's future needs.

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Eligibility for Sukanya Samriddhi Yojana Account 

Below are the eligibility criteria for opening a Sukanya Samriddhi Yojana (SSY) account:

• Account Holder: The account can only be opened for a girl child by her parent or legal guardian.

• Age Limit: The girl child must be below 10 years old at the time of opening the account.

• Number of Accounts:

  • A maximum of one SSY account can be opened in the name of each girl child.

  • A family can open a maximum of two SSY accounts, one for each girl child.

  • An exception exists for families with twins or triplets born the second time, or triplets born the first time. In these cases, a third account can be opened with a medical certificate as proof.

Sukanya Samriddhi Yojana Interest Rates

The interest rate for Sukanya Samriddhi Yojana (SSY) is currently 8.2% per annum. The interest is compounded annually, which means you earn interest on your interest, leading to better returns in the long run.

How to Open a Sukanya Samriddhi Account?

You can open the Sukanya Samriddhi Account in two ways:

• Banks

• Post Office

At a Bank:

• Visit Your Bank: Head to your preferred bank branch.

• Fill the Application Form: Ask for the Sukanya Samriddhi Yojana application form (Form SSA-1)  and fill out the form carefully.

• Gather Documents: You'll need some documents:

  • Birth certificate of the girl child.

  • Parent/guardian's identity proof (Aadhaar card, PAN card, Voter ID etc.).

  • Address proof for the parent/guardian (license, utility bill etc.).

• Make Your Initial Deposit: Deposit a minimum of ₹250 or any amount up to ₹1.5 lakhs for the first installment.

• Submit Everything: Hand over the completed application form and all the required documents to the bank representative.

• Processing and Account Opening: The bank will process your application. Once verified, your SSY account will be opened, and you'll receive a passbook.

At a Post Office:

• Visit Your Local Post Office: Go to your nearest post office with Sukanya Samriddhi Yojana services.

• Obtain the Application Form: The post office will provide you with an account opening form for the Post Office Savings Bank scheme.

• Attach Required Documents: Attach your ID proof, address proof, and any other documents requested by the post office with the application form.

• Make Your Initial Deposit: Deposit at least ₹250 as the initial amount.

• Application Processing: The post office will process your application.

• Account Opening and Passbook: Upon successful verification, your SSY account will be opened, and you'll be issued a passbook.

Sukanya Samriddhi Account Calculator

A Sukanya Samriddhi Account Calculator is an online tool that helps you estimate the future maturity amount of your SSY account. It considers factors like your annual investment amount, the girl's current age, and the existing interest rate.

Here's how it benefits you:

• Planning: You can get an idea of how much the account will be worth at maturity, helping you plan for your daughter's future needs.

• Comparing Scenarios: Try out different investment amounts and see how they impact the final maturity value.

• Goal Setting: It can motivate you to save regularly to achieve your financial goals for your daughter.

These calculators are readily available on the websites of many Indian banks and financial institutions.

Conclusion

The Sukanya Samriddhi Account is an excellent government scheme designed to empower girl children and promote their financial security. Opening an SSY account is convenient and accessible through banks or post offices. By taking advantage of this beneficial scheme, you can ensure your daughter has a strong financial foundation for the years to come.