Sukanya Samriddhi Yojana (SSY) 2020: A Saving Scheme for all-girl child

Gender inequality is one of the most disturbing issues that our country faces for decades. The situation in the non-urban and rural areas are worse. Further Including, the government of India has always worked to eradicate such biases and taken various measures to provide better lives to the girl children of this country.

The Sukanya Samriddhi Yojana is a government scheme under the “Beti Bachao, Beti Padhao” campaign. It aims to help the girls attain better education for themselves and be able to pay for their wedding.

In this article, you will find every detailed information related to Sukanya Samriddhi Yojana.

Scheme Overview

What Exactly is Sukanya Samriddhi Yojana ?

The Sukanya Samriddhi Yojana is a Central Government scheme that encourages parents to save money and built a fund for a secure future of their daughters. This is a fixed investment plan. You can make regular investments in it and earn a good interest value.

Further including, the parents having a girl child below the age of 10 years, can open a single account under this scheme in the name of the girl child. The tenure of the account is 21 years from the date of its opening or till the marriage of the account holder, whichever is earlier.

Meanwhile, the girl cannot continue the account once she is married. This scheme comes with a higher rate of interest and a host of tax benefits.

Basic Features of Sukanya Samriddhi Yojana

Basic features of Sukanya Samriddhi Yojana or SSY.

• Sukanya Samriddhi Yojana is an important tax-saving scheme and investment for the girl child Sukanya Samriddhi Yojana is available with all leading post office and major banks.
• You can even manage it online. The account remains in operation for 21 years. The investment period is only 14 years It provides Section 80C benefits of up to Rs 1.5 lakh annually much like PPF.
• To invest in the scheme, the girl child should be 10 years or less Like PPF, Sukanya Samriddhi Yojana has tax deduction for contribution and tax-free interest and maturity amounts.
• This makes the effective interest rate higher Sukanya Samriddhi Yojana (SSY) has always had one of the highest interest rates, even higher than PPF We strongly recommend Sukanya Samriddhi Yojana.
• You can combine it with other investments like equity funds for the future of the girl child for purposes like the child’s higher education. You can make partial withdrawals at the age of 18 of the girl child and withdraw 50% of the savings for the child’s higher education and marriage

Eligibility Criteria for Sukanya Samriddhi Yojana

Following are the eligibility criteria for opening a Sukanya Samriddhi Yojana (SSY) Account:

• The Sukanya Samriddhi accounts are offered to only the parents or the legal guardians of a girl child in her name.
• The girl child alone can claim the benefits.
• The age of the girl child must be less than 10 years at the time of opening the account.
• The account will be operational until the girl becomes 21 years of age.
• Only one account can be opened in the name of one girl
• To sum up, the maximum number of Sukanya Samriddhi Yojana (SSY) accounts allowed per family is two. Exceptions can be there in case of twins or triplets.

Also Read,

1. Pradhan Mantri Garib Kalyan Yojana
2. Ayushman Bharat Yojana

Exclusions

• For instance, children aged more than 10 years will not be entitled to open accounts under this scheme.
• One can’t open more than one account in the name of a single child.
• In short, the age proof, i.e. the birth certificate is a very important document for opening this account. Therefore, on failing to produce any document, you won’t be allowed to open the account.

How to Open a ccc (SSY) Account?

One can open a Sukanya Samriddhi account in the name of her daughter at any nearby post office or any nationalized or private sector bank that is authorized to offer this scheme. Neither less to say, you just have to properly fill up an application form and deposit with a list of documents mentioned below:

• Birth certificate of the beneficiary, i.e. your daughter
• Identity and address proof of the depositor which is the parents or the guardian
• In case of twin or triplet girl children you need to produce the medical certificates that prove the birth of multiple girl children at once
• Any other document if asked by the bank or post office

At the time of opening the account, you’ll have to pay a minimum amount of Rs. 250. After that, you can deposit any amount in multiples of Rs. 100 at any point in time during one financial year. The minimum and maximum limits of deposit within a year are of Rs. 250 and Rs. 1,50,000. 

Sukanya Samriddhi Yojana interest rate

The current interest rate on this scheme is 8.5% per annum. Policy mature period is 21 years i;e when the girl’s daughter becomes 21 years old.

Withdrawal System under Sukanya Samriddhi Yojana

The accumulated balance of the acquired interest and the invested money will only be available after the completion of 21 years from the account opening. After the maturity, there will be no tax applicable on the amount. In order to withdraw the money, you have to put forward an application form requesting the same along with identity proof, address proof, and citizenship proof.

Apart from that, there are a few options for premature and partial withdrawals.

• Partial Withdrawal:  A partial withdrawal can be done up to 50% of the accumulated balance in your account with appropriate proof only after the beneficiary attains her adulthood. Because the girl becomes eligible for higher studies or a legal marriage only after the age of 18.
• Premature Closure:  However, there are provisions of premature closure of the account in a few circumstances. The untimely death of the beneficiary girl can be one such reason. If the girl moves abroad in any circumstance, then the account can be closed. And finally, if the depositor can produce substantial proof that it is causing financial stress for him to continue the account, then the account can be closed. 

Grievance procedure

The grievance redressal procedure is very simple in the Sukanya Samriddhi Yojana. You can apply for a grievance at http://www.nsiindia.gov.in/ which is the official website of this scheme. There you will find a grievance form on the site. On the other hand, you’ll just have to fill up the details on the form and submit.

Benefits of Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana by India Post aims at financial security of every girl child.
1.68 Crore accounts have been opened under this scheme and it has a corpus of ₹ 37,322 Crore.#InternationalWomensDay #IWD2020 pic.twitter.com/nCIfuoXOEQ

— Ravi Shankar Prasad (@rsprasad) March 8, 2020

In other words, this scheme provides investors with a range of benefits. Some of the key benefits of Sukanya Samriddhi Yojana (SSY) are:

• It provides tax deduction benefits up to 1.5 lakh annually
• Flexible deposit options are available ranging from Rs 250 to Rs 1.5 lakh per annum
• However, it offers a higher fixed rate of return than other Govt. aided schemes
• Returns supported by the sovereign guarantee of the Government of India
• It can be transferred from one post office/bank to another anywhere in India

Concluding Words

In conclusion, we can say this is a well-intended financial product offered by the Government. It is beneficial from both the social and financial angle. Moreover, the key intention behind this scheme is to change the mindset of our society regarding our daughters.

The Sukanya Samriddhi Yojana is successful in providing financial freedom to the girls of our country. With this initiative, the Government wants to give the society a message that you can secure the girls’ future with a little financial planning.