Sukanya Samriddhi Yojana 2024
The Sukanya Samriddhi Yojana (SSY) is a small savings scheme introduced by the Government of India in 2015 as part of the ‘Beti Bachao Beti Padhao’ (Save the Girl Child, Educate the Girl Child) campaign. This initiative aims to promote the welfare of girl children by providing a secure and beneficial investment option for their future. In this comprehensive guide, we’ll explore the features, benefits, and everything you need to know about the Sukanya Samriddhi Yojana.
What is Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana is a government-backed savings scheme designed to secure the financial future of girl children in India. The scheme encourages parents and legal guardians to save for their daughter’s education and marriage expenses. With its attractive interest rates and tax benefits, SSY has become a popular choice for many families looking to invest in their daughter’s future.
Key Features of Sukanya Samriddhi Yojana
- Account Opening: Parents or legal guardians can open an SSY account for a girl child up to the age of 10 years.
- Number of Accounts: A family can open a maximum of two SSY accounts, one for each girl child. In case of twin girls as a second birth or if the first birth itself results in three girl children, three accounts are allowed.
- Deposit Limits:
- Minimum deposit: ₹250 per financial year
- Maximum deposit: ₹1.5 lakh per financial year
- Interest Rate: The scheme offers a high interest rate, currently set at 8.2% per annum (for Q3 FY 2024-25), compounded annually.
- Account Duration: The account matures after 21 years from the date of opening or when the girl child gets married after turning 18, whichever is earlier.
- Partial Withdrawal: Up to 50% of the balance can be withdrawn for higher education expenses when the girl reaches 18 years or passes 10th standard, whichever is earlier.
- Account Transfer: The account can be transferred anywhere in India if the account holder or parents move.
- Tax Benefits: Investments in SSY are eligible for tax deduction under Section 80C of the Income Tax Act. The interest earned and the maturity amount are also tax-free.
Eligibility Criteria
- The account can be opened by parents or legal guardians for a girl child up to 10 years of age.
- Only one account per girl child is allowed, with a maximum of two accounts per family (exceptions for twins/triplets).
- The girl child and the guardian must be Indian residents.
How to Open a Sukanya Samriddhi Account
- Visit any authorized bank branch or post office.
- Fill out the SSY account opening form.
- Provide the following documents:
- Birth certificate of the girl child
- Identity proof of the parent/guardian (Aadhaar card, PAN card, etc.)
- Address proof of the parent/guardian
- Passport size photograph of the parent/guardian
- Make the initial deposit (minimum ₹250).
Benefits of Investing in Sukanya Samriddhi Yojana
- High Interest Rate: SSY offers one of the highest interest rates among government-backed savings schemes.
- Government Guarantee: Being a government scheme, the returns are guaranteed and secure.
- Tax Benefits: Contributions, interest earned, and maturity amount are all tax-free.
- Long-term Savings: The scheme encourages long-term savings for crucial expenses like education and marriage.
- Flexibility: Deposits can be made in lump sum or through monthly/quarterly installments.
- Partial Withdrawal Facility: Allows for withdrawal for education expenses, ensuring the child’s academic needs are met.
- Low Minimum Deposit: The low minimum deposit of ₹250 makes it accessible to families across various income groups.
Comparison with Other Savings Schemes
To give you a better perspective, let’s compare SSY with other popular savings options:
| Feature | Sukanya Samriddhi Yojana | Public Provident Fund (PPF) | Fixed Deposit (FD) | National Savings Certificate (NSC) |
|---|---|---|---|---|
| Interest Rate (2024) | 8.2% p.a. | 7.1% p.a. | 5-7% p.a. (varies by bank) | 7.7% p.a. |
| Lock-in Period | 21 years or until marriage after 18 | 15 years | 7 days to 10 years | 5 years |
| Minimum Investment | ₹250 per year | ₹500 per year | Varies by bank | ₹1,000 |
| Maximum Investment | ₹1.5 lakh per year | ₹1.5 lakh per year | No limit | No limit |
| Tax Benefits | EEE (Exempt-Exempt-Exempt) | EEE | Taxable | EEE |
| Partial Withdrawal | Allowed for education | Allowed after 6 years | Premature withdrawal with penalty | Not allowed |
Sukanya Samriddhi Yojana Calculator
To help you understand the potential returns from SSY, here’s a simple example calculation:
Assuming you invest ₹1.5 lakh per year for 15 years (until the girl turns 15) at the current interest rate of 8.2%:
- Total investment: ₹22,50,000
- Maturity amount after 21 years: Approximately ₹66,80,000
This calculation demonstrates the power of compound interest and long-term saving through SSY.
Challenges and Considerations
While SSY offers numerous benefits, there are some challenges to consider:
- Limited Accessibility: The scheme may have limited reach in rural areas due to lack of awareness or access to banks/post offices.
- Inflation Risk: The fixed interest rate might not always beat inflation over the long term.
- Liquidity Constraints: The long lock-in period may be a concern for families needing more flexible access to funds.
- Investment Cap: The annual investment limit of ₹1.5 lakh may be restrictive for some high-income families.
FAQs about Sukanya Samriddhi Yojana
- Q: Can I close the SSY account before maturity? A: Premature closure is allowed only in case of extreme circumstances like the death of the account holder or on compassionate grounds.
- Q: What happens if I miss a year’s deposit? A: The account becomes irregular but can be regularized by paying a penalty of ₹50 along with the minimum deposit amount.
- Q: Can the girl child operate the account herself? A: Yes, once she turns 10, she can operate the account herself, but deposits will still be made by the guardian until she turns 18.
- Q: Is it mandatory to close the account when the girl child turns 21? A: No, the account can continue to earn interest even after 21 years, but no further deposits will be allowed.
- Q: Can NRIs open an SSY account? A: No, only resident Indians can open and operate an SSY account.
Conclusion
The Sukanya Samriddhi Yojana is a well-thought-out scheme that addresses the financial needs of the girl child while promoting their education and welfare. With its high interest rates, tax benefits, and government backing, it offers a secure and beneficial investment option for parents and guardians. However, like any financial decision, it’s important to consider your specific circumstances and long-term goals before investing.
By choosing to invest in SSY, you’re not just saving money; you’re investing in the future of the girl child and contributing to their empowerment and financial independence. As the scheme continues to evolve, it remains a cornerstone in the government’s efforts to promote gender equality and the welfare of girl children in India.
