The Sukanya Samriddhi Yojana is a savings scheme launched by the Government of India to promote the welfare and to secure future of girl children. It is the best scheme available for investment in the name of a girl child.
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Account opening for Sukanya Samriddhi Yojana
- Account for Sukanya Samriddhi Yojana can be opened by a guardian in the name of a girl child who is less than 10 years old at the time of account opening. Every account holder may have only one account.
- You can open SSY Account for no more than two daughters.
- The amount deposited under this account matures only after 21 years of deposit.
Deposits
- The account can be opened with a minimum deposit of Rs. 250 and subsequent deposits must be made in multiples of Rs. 50.
- A minimum deposit of Rs. 250 must be made each financial year.
- The total amount deposited in a year cannot exceed Rs. 1.5 lakh.
- The account can be kept active for up to 15 years.
Benefits of Sukanya Samriddhi Yojana
- After the girl turns 18 years of age, 50% of the balance can be withdrawn to meet educational expenses or for her marriage. You shall provide such proof to support the withdrawal request.
- Deposits upto 1.5 lakh rupees is eligible for a deduction under Section 80C of Income Tax Act.
- Interest amount earned on the SSY deposits is tax-free and the interest is compounded annually.
- The amount that you receive upon maturity is also tax-free.
Interest rate
- The interest rate for the Sukanya Samriddhi Yojana account changes periodically.
- The interest rates were as high as 8.6% in the year 2018 and vary every year basis Govt’s announcement. Current interest rate is 7.6% for FY 22.
- Interest is calculated on the lowest balance in the account between the 5th and last day of each month and is credited at the end of each financial year.
Penalty
- Sukanya Samriddhi Yojana accounts that does not meet the minimum deposit requirement, is considered to be in default.
- The account can be regularized by paying a penalty of Rs. 50 per year of default, along with the minimum annual deposit for the defaulted years.
How to open the SSY account and how much do you get
- Approach your bank or nearby post office for opening SSY account.
- Use the calculator to get to know the corpus you can expect to receive upon maturity of the scheme.
Sukanya Samriddhi Yojana Account operation
The account must be operated by the guardian until the account holder reaches the age of 18. After that, the account holder may operate the account.
Learn about other good investment options: Public Provident Fund, Fixed Deposit
