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- The amount deposited by the parents of the girl child can be only withdrawn by the girl and not by her parents or guardian[/su_list]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
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.