Benefits of Sukanya Samriddhi Yojana

The Sukanya Samriddhi Yojana is a girl child welfare scheme developed by the government under the ‘Beti Bachao, Beti Padhao’ campaign. By making use of the SSY scheme, parents or legal guardians of a girl child below the age of 10 years can open an account in her name in any of the participating public and private sector banks.This scheme offers an opportunity for the parents and legal guardians to invest funds for the benefit of their daughter so that when she becomes a major, she can use the funds earned to realize her dreams.

• An account under the Sukanya Samriddhi Yojana must be opened before the girl child turns 1o years of age.
• The parents or legal guardians can open the account in the girl child’s name
• Only two accounts can be opened for one family with two daughters. If there is a third daughter, then a third account cannot be opened under the Sukanya Samriddhi Yojana.
• Multiple accounts cannot be opened for the same girl child.

Tenure The SSY scheme offers a tenure period of 21 years starting from the date of opening the account. However, if the daughter gets married before this time, then the account services and all the benefits will cease to exist. Investment Under the Sukanya Samriddhi Yojana, the parents can invest a minimum of Rs. 1000/- and a maximum of Rs. 1,50,000 per year into their daughter’s account. The deposits can only be made up to 15 years from the time of opening the account, after which the funds in the account can grow on its own with compound interest.

Interest Rate The SSY scheme provides a much better interest rate than other small savings schemes. Currently the interest offered is 8.5 percent. Tax Deduction The money invested into the Sukanya Samriddhi Yojana account is tax deductible up to Rs. 1,50,000/-. Also, the final maturity amount is also completely tax-free. Long term Investment Since the Sukanya Samriddhi Yojana is a long-term investment, it benefits highly from the power of compound interest. This allows a girl child to use the funds for higher education or for marriage after the maturity period. Partial Withdrawal There is also an option under the SSY scheme for a partial withdrawal of the accumulated amount for marriage expenses or if the daughter requires the funds to pursue higher studies. The partial withdrawal amount cannot exceed 50 percent of the amount in the account.Thus, the Sukanya Samriddhi Yojana is a brilliant scheme launched by the government for the betterment of the girl child. Millions of families worry about the future expenses, whether they are marriage expenses or education expenses, of a girl child. Using this scheme, they can slowly but steadily invest in their daughter’s future.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.