Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana is a small saving scheme for girl child, which was launched in 2015 under the Beti Bachao Beti Padhao scheme provided by the Indian Ministry. SSY was launched in 22nd January 2015 by the Indian Prime Minister Narendra Modi. This scheme is specially designed for girl’s higher education or marriage needs.
This scheme provide financial beneficiaries for girl child as well as parent and guardian. It is applicable for the girl child those who have the age of 10. SSY account can be open at any time after the birth of a girl till she turns 10. This saving is very much helpful for the girl child for her higher education and for her wedding expenses.
IT delivers a little deposit investment for the girl child. One of the main advantageous of this scheme is this scheme provide a high rate of interest. Now it is 9.2 % in the financial year 2016-17. A Sukanya Samriddhi Account can be opened with an amount of Rs. 1,000.
How to open Sukanya Samriddhi Yojana Account?
This account can be opened from any authorized post office branch or authorized branches of commercial banks. While opening the account you got a pass book. You can make transaction from your branch directly or through net banking automatic credit to Sukanya Samriddhi Account.
Documents needed for opening the SSY account
- Birth Certificate of the Girl Child having Name on it.
- Identity Proof of the Parent or Legal Guardian.
- Address Proof of the Parent or Legal Guardian.
- SSY account can only be opened for girl child.
- The girl child should be 10 years or younger at the time of opening the account.
- It can be opened by the parent in the name of their girl child.
- One account is permitted to every girl child.
- Guardian can open this account with a maximum of 2 children.
- Account can only be opened for girl child who hold Indian citizenship.
From Where You can Open a SSY Account ?
A Sukanya Samriddhi Account can be opened in any authorised post office branch or authorised branches of commercial banks. Some of the banks that dealing Sukanya Samriddhi Accounts are SBI, Canara Bank, Federal Bank, Union Bank of India, ICICI, IDBI, Axis Bank and more other banks provides this service also. This account can be opened with an amount of Rs. 1000.
Mode of Payment
The deposit in the account can be made in cash or by cheque or demand draft . This has to be made and signed by the depositor, indicating the name of the account holder and the account number in which the deposit is to be credited.
Sukanya Samriddhi Yojana provide income tax benefit, that is EEE tax exempted. It means that the deposit of the account would be free from all taxes along with the maturity amount too would be exempted from all taxes. SSY is under the Income Tax Act 1961, Section 80 C.
This scheme says that the account must have at least one thousand rupees has to be deposited each year. A maximum of Rs 1.5 lakh can be deposited during the ongoing financial year. Multiple of 100 can be deposited to the account with a minimum of Rs 1000 per year.
The Sukanya Samriddhi Account can be closed when the girl child completes the age of 21. If account is not closed after maturity, the balance will continue to earn interest as specified for the scheme from time to time.
This account can be fully withdraw after the girl turns the age 21. The 50 per cent of the accumulated amount can be withdrawn after the account holder turns 18. This 50 % of deposit can be withdraw for the higher education or to meet the financial demands of marriage needs of the account holder that means the girl child.
Premature closure of SSY Account
Sukanya Samriddhi Yojana account can be closed permanently through the following conditions.
- In case of the unfortunate death of the account holder.
If the girl died during the maturity period, the parent or guardian can claim the accumulated amount along with the interest. The amount is handed over to the parent or guardian of the child.
- Parent or Guardian is unable to pay the amount
In case the central government feels that it has become quite tough for the parent or guardian to carry forward the account. So the account will be closed permanently. The permission from the authority for closing the account will be granted only the extreme compassionate grounds like life threatening diseases and medical exigencies to the parent of the child.
Benefits of Sukanya Samriddhi Yojana
- The interest rate offered by this plan is the highest, when compared to other Small Savings Schemes.
- Investments made towards this scheme are eligible for tax deduction under Section 80C of the Income Tax Act,1961.
- The maturity period of this account is when the girl child become 21 years.
- She can withdraw 50 % of the deposit when she become 18 years for her higher education.
- The full amount along with interest accumulated will be directly paid to the policyholder at the time of maturity.
- The interest is accrued on the account even after it is matured and this keeps on going till it is finally closed by the account holder.
Sukanya Samriddhi Yojana proves to be a far better option, If a parent want to save money especially for girl child. This scheme provide a lot of financial security to the girl child. It also gives financial safety and independence to the girl child. The objective behind this initiative is to address the Gender imbalance and create a positive environment in favor of Girl Child.