SSY : Sukanya Samriddhi Yojana Benefits & Interest Rates?

 Sukanya Samriddhi Yojana: Empowering the Girl Child for a Brighter Future

Introduction

In a nation's progress, the empowerment and education of its women play a crucial role. Recognizing this, the Government of India launched the Sukanya Samriddhi Yojana (SSY) in 2015 as part of its broader Beti Bachao, Beti Padhao (Save the Daughter, Educate the Daughter) campaign. 

This innovative scheme aims to provide financial security and promote the welfare of the girl child, emphasizing their education and future aspirations. In this blog, we will delve into the details of the Sukanya Samriddhi Yojana, its key features, benefits, and the impact it has had on the lives of millions of families across India.

Understanding Sukanya Samriddhi Yojana (SSY)

The Sukanya Samriddhi Yojana is a small savings scheme backed by the government, designed specifically for the betterment of the girl child. It offers a long-term investment avenue for parents or guardians to build a substantial corpus for their daughters' future needs, such as education, marriage, and other essential expenses.

Key Features and Eligibility

a) Age Eligibility: The Sukanya Samriddhi Yojana can be availed for a girl child from birth up to the age of 10 years.

b) Account Opening: The account can be opened by parents or legal guardians in the name of the girl child.

c) Deposit Amount: A minimum initial deposit of Rs. 250 is required to open the account, with subsequent deposits in multiples of Rs. 100. The maximum annual deposit allowed is Rs. 1.5 lakh.

d) Tenure: The account matures after completion of 21 years from the date of opening or upon the girl's marriage after she turns 18.

e) Interest Rate: The interest rate on the Sukanya Samriddhi Yojana is revised by the government on a quarterly basis. As of September 2021, it stands at an attractive 7.6% per annum, compounded annually.

f) Tax Benefits: Contributions made to the scheme are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. The interest earned and the maturity amount are also tax-free.

g) Withdrawals: Partial withdrawals up to 50% of the account balance are permitted after the girl child attains the age of 18 years for higher education or other specified reasons.

Opening an SSY Account

To open an SSY account, parents or legal guardians must follow these steps:

a) Visit a designated bank or post office that offers Sukanya Samriddhi Yojana accounts.

b) Fill in the required application form with accurate details, such as the girl child's name, birth certificate, address proof, and ID proof.

c) Submit the necessary documents along with the initial deposit amount.

d) Once the account is opened, a passbook will be issued, which records all transactions and displays the account balance.

Benefits of Sukanya Samriddhi Yojana

a) Financial Security: The scheme aims to ensure a secure financial future for the girl child. The accumulated corpus can be used for higher education expenses, professional courses, or funding entrepreneurial ventures.

b) High Interest Rates: With an interest rate higher than most other investment options, the SSY offers compounded growth, helping the investment to grow over time.

c) Tax Benefits: Contributions to the Sukanya Samriddhi Yojana qualify for deductions under Section 80C, reducing the tax burden for parents or guardians. Additionally, the interest earned and the maturity amount are tax-free.

d) Empowering Girls: By promoting savings and investment for the girl child, the scheme encourages the development of a culture of financial independence, thereby fostering gender equality.

e) Flexible Withdrawal: The partial withdrawal facility allows families to meet higher education expenses without straining their financial resources.

Impact and Success Stories

Since its inception, the Sukanya Samriddhi Yojana has made a significant impact on the lives of countless families in India. It has facilitated the education of girls from underprivileged backgrounds, enabling them to pursue their dreams and break societal barriers. 

Many success stories showcase the transformative power of the scheme, where girls have gone on to excel in academics, secure scholarships, and become catalysts of change within their communities.

Frequently Asked Questions?

1.How many years need to pay for Sukanya Samriddhi Yojana?

Ans. The maturity period of SSY is 21 years from the account opening or upon her marriage after attaining 18 years. However, contributions have to be made for only 15 years. Thereafter, the SSY account will continue to earn interest until maturity even when no deposits are made into it.

2. What is the benefits of Sukanya Samriddhi scheme?

Ans. You can avail of a deduction of up to Rs 1,50,000. The compound interest that is accumulated in your deposit account is also exempt from tax. The withdrawals are also tax-free. Thus, once your account matures you can withdraw the amount without deduction.

3. What is Sukanya scheme for girls?

Ans. Sukanya Samriddhi Yojana ( सुकन्या समृद्धि योजना ) is a government-backed small savings scheme for the benefit of girl child. It is a part of the Beti Bachao, Beti Padhao Yojana and can be opened by the parents of a girl child below the age of 10. SSY account can be opened at designated banks or post offices.

4.सुकन्या समृद्धि योजना के लिए कितने साल का भुगतान करना होगा?

Ans.एसएसवाई की परिपक्वता अवधि खाता खोलने से 21 वर्ष या 18 वर्ष की आयु प्राप्त करने के बाद उसकी शादी पर है। हालांकि, योगदान केवल 15 वर्षों के लिए किया जाना है। इसके बाद, SSY खाता परिपक्वता तक ब्याज अर्जित करता रहेगा, भले ही इसमें कोई जमा न किया गया हो।

5. Can I deposit 10 lakhs in Sukanya Samriddhi?

Ans. The maximum amount that can be deposited under the Sukanya Samriddhi Scheme is Rs.1.5 lakh per annum.

6. Which is better Sukanya or PPF?

Ans .PPF offers better flexibility and SSA provides you with higher returns. In any case, risk appetite doesn't come into the scene, so you can clearly invest in both of them if you have surplus amount.

7.Is Sukanya good or bad?

Ans. With an interest rate (current) of 7.6% and the tax benefit, government-backed Sukanya Samriddhi Yojana is an excellent investment scheme.

8. Can girls withdraw money from Sukanya samriddhi?

Ans. Withdrawal may be taken from account after girl child attains age of 18 or passed 10th standard. (ii) withdrawal may be taken up to 50% of balance available at the end of preceding F.Y.

9.What is the drawback of Sukanya Samriddhi Account?

Ans. The lock-in period of Sukanya Samriddhi Account is very high. The amount deposited under this account matures only after 21st years of deposit. So, the account is not ideal for short term deposits.

10. Is Sukanya tax free?

Ans. Amounts invested in the Sukanya Samriddhi Yojana account can be deducted from taxable income up to Rs 1.5 lakh per year under section 80C of the Income-tax Act. Interest earned, and the amount on maturity are also tax-free.

Conclusion

The Sukanya Samriddhi Yojana has emerged as a potent tool for empowering the girl child and ensuring their financial well-being. By encouraging parents and guardians to save and invest in their daughters' future, the scheme paves the way for a more inclusive and progressive society. 

It not only fosters financial independence but also promotes gender equality and women's education. As more families embrace this scheme, we can expect a brighter future for the girl child, where dreams are nurtured, and opportunities are realized.

In a world that thrives on equality, the Sukanya Samriddhi Yojana serves as a beacon of hope, fostering a society where every girl can dream, aspire, and succeed. Let us come together to support and promote this remarkable initiative, thereby empowering the girl child for a better tomorrow.