Sukanya Samriddhi Yojana (SSY)

Welcome to our latest blog post, where we unravel the intricacies of Sukanya Samriddhi Yojana (SSY). Designed to empower the girl child and secure her financial future, Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme that offers attractive returns and tax benefits. In this comprehensive guide, we’ll delve into the details of SSY, explore its benefits, and provide essential insights to help you make the most of this scheme for your daughter’s future.

What is Sukanya Samriddhi Yojana (SSY)?

The Ministry of Finance offers a small deposit scheme called Sukanya Samriddhi Yojana (SSY) that is only available to girls. The Hon’ble Prime Minister introduced SSY on January 22, 2015, as a component of the Beti Bachao Beti Padhao initiative. The program is designed to cover a girl child’s schooling and marriage costs. This programme, which was announced by the Indian government on December 14, 2014, encourages parents to save aside money for their female child’s future education and marriage. Applications for SSY can be submitted through Post Offices, Public Sector Bank branches, and three private sector banks: ICICI Bank, HDFC Bank, and Axis Bank. A girl child’s parent or legal guardian may open the account. The girl child has to be smaller than ten years old. A girl child is only allowed to have one account. A family is limited to two SSY account openings.

The annual Maximum Investment is ₹1,50,000; the Annual Minimum Investment is ₹250. A 21-year maturity period is offered. Rate of interest 8.2% Per Annum(with effect from 01-01-2024 ),calculated on yearly basis ,Yearly compounded. Tax exemptions apply to the principle amount deposited, interest accrued during the full term, and maturity advantages. Under section 80C, the principal amount is deductible up to ₹1,50,000.

Benefits of Sukanya Samriddhi Yojana(SSY)

 

1. 1. The Minimum Investment is ₹250 per annum; The Maximum Investment is ₹1,50,000 per annum. The Maturity Period is 21 years.

1. 1. At present, SSY has several tax benefits and the highest rate of interest among all the Small Savings Schemes i.e. 8.2% Per Annum(with effect from 01-01-2024 )

1. 1. The principal amount deposited, interest earned during the entire tenure, and maturity benefits are tax-exempt under Section 80C.

1. 1. The account can be transferred anywhere in India from one post office/Bank to another.

1. 1. Interest is paid on an open account even after maturity.

1. 1. A premature withdrawal of up to 50% of investment is allowed after the child gains the age of 18 years even if she is not getting married.

Eligibility For Sukanya Samriddhi Yojana(SSY)

 

1. • The account may be opened by one of the guardians in the name of a girl child, who has not attained the age of ten years as of the date of opening of the account.

• • Every account holder shall have a single account under this Scheme.

• • An account under this Scheme may be opened for a maximum of two girl children in one family: Provided that more than two accounts may be opened in a family if such children are born in the first or in the second order of birth or in both, on submission of an affidavit by the guardian supported with birth certificates of the twins/triplets regarding the birth of such multiple girl children in the first two orders of birth in a family. Provided further that the above proviso shall not apply to the girl child of the second order of birth if the first order of birth in the family results in two or more surviving girl children.

Application Process For SSA

A Sukanya Samriddhi Yojana (SSY) account can be opened at any participating bank or Post Office branch. To open the account, complete the steps outlined below:

 

• Go to the bank or Post Office where you want to open the account.
• Fill out the application form with the necessary information and attach any supporting documents .
• Pay the first deposit in cash, check, or demand draught. The payment can range between Rs.250 and Rs.1.5 lakh.
• Your application and payment will be processed by the bank or the Post Office.
• After processing, your SSY account will be activated. A passbook will be supplied for this account to commemorate the account’s opening.

Documents Required For SSA

 

1. • Birth certificate of the girl child.

• • Photo ID of applicant parent or legal guardian.

• • Address proof of applicant parent or legal guardian.

• • Other KYC proofs such as PAN, and Voter ID.

• • SSY account opening form.

• • A medical certificate has to be submitted in case multiple children are born under one order of birth.

• • Any extra documents that the post office or bank requests.

Conclusion

Sukanya Samriddhi Yojana (SSY) stands as a beacon of hope for parents seeking to secure the financial future of their daughters. By investing in SSY, you not only ensure their education and marriage expenses are taken care of but also contribute to their overall empowerment and independence. Remember, every contribution you make today paves the way for a brighter tomorrow for your daughter. Start investing in Sukanya Samriddhi Yojana and embark on a journey towards financial prosperity and security for your beloved child.

For more details you can click here https://www.myscheme.gov.in/schemes/ssy#application-process

Frequently Asked Questions (FAQs)

To address common queries, here are some frequently asked questions about Sukanya Samriddhi Yojana:

What Is The Taxation Process Of Amount Deposited Under Sukanya Samriddhi Scheme?

There is a limit of 1,50,000. which is exempt from taxation . Any amount above this will not fetch any income tax relief under section 80 C of Income Tax Act.

What is the maturity amount of Sukanya Samriddhi Yojana ?

The maturity amount of Sukanya Samriddhi Yojana (SSY) depends on several factors, including the amount invested, the prevailing interest rate, and the duration of the investment. SSY has a maturity period of 21 years from the date of opening the account, or until the girl child gets married after the age of 18 years, whichever is earlier. At maturity, the accumulated amount, including the principal and accrued interest, is paid out to the account holder. It’s important to note that SSY offers competitive interest rates that are typically higher than other savings schemes, contributing to a substantial maturity amount over the investment period.

To read our blog post click  on Post Office NSC .

Which is better SSY or PPF?

Choosing between Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF) depends on specific needs. SSY is tailored for the girl child’s future with higher interest rates, tax benefits, and a longer maturity period. PPF offers flexibility for all investors with tax benefits and a shorter maturity period. Evaluate based on individual requirements.