Sukanya Samridhi Yojana is a prosperity scheme for a girl child, an initiative as a part of the ‘Beti Bachao, Beti Padhao’ campaign by the Government of India.

Sukanya Samriddhi Yojana is one of government-backed small savings schemes that can help parents secure the future of their girl child. This scheme can be easily opened in post offices and designated private or public banks in the form of savings account in the name of the baby girl.

Like other government savings schemes, the interest rates for Sukanya Samriddhi Yojana are declared quarterly.

Keep reading to know more about it…

Features of Sukanya Samridhi Yojana

  • The scheme is designed to meet the expenses during the girls higher education or the girl’s marriage majorly in rural and semi-urban areas, where due to lack of funds girl child faces a lot of issues both during higher education and at the time of marriage.
  • The amount deposited by the parents of the girl child can be only withdrawn by the girl and not by her parents or guardian[/su_list]

Eligibility for Opening SSY (Sukanya Samridhi Yojana) Account

  • The Sukanya Samridhi plan can be opened only in the name of the girl’s child by her parents or legal guardian
  • The account can be only opened for a girl child who is below 10 yrs old
  • A single account under the scheme can be only opened for one child
  • A maximum of two accounts are allowed for a family, i.e. one for each child

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Benefits of Sukanya Samridhi Yojana

  • Tax deductions under 80 C (up to 150000 every year)
  • The rate of interest is slightly higher than the traditional plans
  • Up to 50% withdrawal is allowed when the girl attains the age of 18 yrs
  • After 21 yrs. of age, the girl child will be having the financial backing to support her on her future endeavours
  • The account can be easily opened in a bank or the post office
  • The payment tenure of the investment is 14 yrs. from the date of the first investment
  • The scheme is allowed for 2 girl child in a family, till the age of 10 years
  • The range of amount can be deposited from Rs 250 to Rs 1,50,000 per year

Interest Rate for Sukanya Samriddhi Yojana

  • The revised interest rate for the financial year 2019-20 is 8.4% compounded every year
  • The option of monthly interest is also available. In this option, the rate of interest is calculated on the minimum balance present into the subscriber’s account between the end of the 10th and the last day of the month.
  • The interest rate is competitive to the other traditional plans so it makes it attractive for the parents to invest in the plan which provides financial security for their wards.

What Are The Documents Required for Sukanya Samriddhi Yojana

  • Account opening form of the Sukanya Samriddhi Yojana
  • Birth certificate of the girl child
  • Identity proof as per RBI guidelines
  • Residence proof as per RBI guidelines

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Maturity and Premature Closure of Sukanya Samriddhi Yojana

  • The account can be closed after 21 years from the date of opening or till the date of marriage
  • The matured amount will be directly handed over to the girl child
  • Premature closure of the account can be made only after completing 5 yrs. tenure :
    • On the death of the guardian
    • Deposits required for catering to the genuine hardship on the family or the girl child
    • Money required to cater to the life-threatening disease

Final Thoughts

The purpose of launching this scheme was more from a social angle than an investment angle. The government from this scheme wants to change the mindset of the Indian parents that a girl child is a financial burden for them as for education they feel that money invested in their girl children is a waste as they have to get married and there is no return on investment.

For marriage, Indian parents have to bear the huge amount to cater to the demands of the girl’s future in-laws. Hence, the government feels a small amount of saving from the parents can support their girl child’s dreams, aspirations, and future life.

Sukanya Samriddhi Yojana – FAQs

Who is eligible for a Sukanya Samriddhi Yojana account?
Guardians can open an account on behalf of their girl child anytime between when she is born and before she reaches the age of 10.
How many accounts can be created under SSY?
Only one SSY account is permitted for a girl child. The number of accounts guardians can create is restricted to two for each of their girl child. Exceptions are only in case of twins or triplets.
What is the minimum amount required to open an SSY account?
Individuals can open an account with as low as Rs. 250. They also have to invest a minimum of Rs. 250 to keep the account active.
What happens when I do not make any deposits?
An SSY account is rendered inactive if you don’t make any deposits. However, you can revive your account by paying a penalty charge of Rs. 50.
What is the maximum amount that I can deposit in a year?
The maximum amount that you can deposit per year in a Sukanya Samriddhi Yojana account is Rs. 1.5 Lakh.
What is the maturity period of an SSY account?
The maturity period of an SSY account is 21 years. However, you only have to make deposits for 14 years. The deposited corpus will earn interest between the 14th and 21st year. Note that an SSY account will be terminated once a girl reaches 21 years of age or gets married, whichever is earlier.
Does a Sukanya Samriddhi Yojana account provide income tax benefits?
Yes. SSY accounts provide income tax benefit of up to Rs. 1.5 Lakh under Section 80C.
Can an accountholder prematurely withdraw from an SSY account?
Yes. An accountholder (the girl) will be able to withdraw from her account once she reaches 18 years of age. The accountholder can only withdraw 50% of the accumulated amount once after she reaches this specified age only for the purpose of higher education.
Can an SSY account be closed before maturity?
Yes. A Sukanya Samriddhi Yojana account can be closed in the event of the accountholder’s death or for the treatment of life-threatening diseases, the sanction of which needs to be authorised by the Central Government.