Sukanya Samriddhi Yojana: The Sukanya Samriddhi Yojana (SSY) is a small deposit scheme launched by the Government of India in 2015 as part of the ‘Beti Bachao, Beti Padhao’ campaign to empower girl children and encourage their financial security. It offers attractive interest rates, tax benefits, and a long maturity period, making it an ideal investment option for parents and guardians planning for their girl child’s future education and marriage expenses.
Current News of SSY:
The government of India recently announced an increase in the interest rate for the Sukanya Samriddhi Yojana (SSY) scheme by 20 basis points for the January-March quarter of 2024. This means the new interest rate for the scheme is 8.2%, up from the previous 8%.
It’s great news for parents and guardians who are saving for their girl child’s future through this scheme. The higher interest rate will help their deposits grow faster, providing them with a more substantial amount at maturity.
Details of the Sukanya Samriddhi Yojana scheme:
Eligibility:
- Only a girl child below the age of 10 years can have an SSY account opened in her name.
- A maximum of two accounts can be opened for two girl children born to the same parents or guardian. ‘Sukanya Samriddhi Yojana’
Deposits:
- A minimum of ₹250 and a maximum of ₹1.5 lakh can be deposited in an SSY account in a financial year.
- Deposits can be made in cash or through cheque/electronic transfer.
- The account must be kept active for at least 15 years.
Interest Rates:
- The current interest rate for SSY is 8.2% (as of January 1, 2024).
- The interest rate is reviewed quarterly and can be revised by the government.
Tax Benefits:
- Investments made in SSY qualify for tax deduction under Section 80C of the Income Tax Act, 1961.
- The interest earned on the account and the maturity amount are exempt from income tax.
Maturity and Withdrawals:
- The account matures after 21 years from the date of opening.
- Partial withdrawals are allowed for the girl child’s higher education after she attains the age of 18 years.
- The account can be prematurely closed in case of the girl child’s marriage after she attains the age of 18 years.
Benefits of SSY:
- High returns: The SSY scheme offers one of the highest interest rates among small savings schemes in India. This helps the invested amount grow significantly over the long maturity period.
- Tax benefits: The tax-free nature of deposits, interest earned, and maturity amount makes SSY a very attractive investment option.
- Financial security for girl child: The scheme helps parents and guardians save for their girl child’s future education and marriage expenses, thereby providing them with financial security.
- Supports government initiative: By investing in SSY, you are not only securing your girl child’s future but also contributing to the government’s initiative of empowering girl children.
Documents required for opening an SSY account:
- Birth certificate of the girl child.
- ID proof of the parent or guardian (PAN card, Aadhaar card, etc.).
- Two passport-size photographs of the girl child and the parent or guardian.
Overall, the Sukanya Samriddhi Yojana is a beneficial scheme for parents and guardians who want to secure their girl child’s future. It offers a high interest rate, tax benefits, and long-term security, making it a valuable tool for financial planning.