What is Sukanya Samriddhi Yojana?
The Sukanya Samriddhi Yojana is a government scheme launched under the Beti Bachao Beti Padhao campaign to ensure a bright future for the girl child in India. The scheme helps parents of a girl child to meet her education and marriage expenses in a carefree manner. The scheme provides flexibility in investing through which one can make regular deposits and earn interest on it. The scheme also comes with tax benefits up to ₹1.5 lakh in a financial year under Section 80C of the Income Tax Act.
Features Of Sukanya Samriddhi Yojana
- The Sukanya Samriddhi Account can be opened for any girl in India under the age of 10 years.
- Only one account can be opened for a one girl child.
- The account can be easily opened at any Post Office or authorized bank.
- One can open this account with a minimum amount of ₹ 250.
- The maximum deposit limit for this account is ₹ 1.5 Lakhs in one financial year.
- The scheme has a tenure period of 14 years.
- The maturity period of the account is 21 years from the date of account opening.
- The current interest rate offered on this account is 7.60%
- No premature closures are allowed unless the investment has completed 5 years.
Tax Benefits of Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana helps you to save tax and build a corpus for your daughter’s future at the same time.
- The investments towards Sukanya Samriddhi Yojana are eligible for tax deductions under Section 80C of the Income Tax Act.
- The scheme allows tax deductions of up to ₹1.5 lakhs in every financial year (the entire investment made will become tax-deductible).
- The interest earned from the investment made under this scheme is also exempted from tax.
- Even on the maturity of the scheme, one does not have to pay any taxes on withdrawal of the amount.
The lock-in period of the Sukanya Samriddhi Yojana is 21 years.
The scheme can be opened with a minimum amount of ₹250 and the same is needed every year for 15 years so keep your account live. However, the maximum amount allowed to invest in this scheme is ₹1.5 lakh every financial year.
Investment can be made under this scheme in multiples of 100 through cash, cheque, demand draft or online transfer. One is also free to make any number of deposits in a year. But, if you fail to make the minimum amount i.e ₹250 in a year, then your account will be discontinued.
The Interest Payout
The current interest rate offered on this account is 7.60%. The interest is paid along with the principal only at the time of maturity or premature closure of the account.
Sukanaya Samriddhi Yojana gives you the option of making partial withdrawals after your girl child turns 18. Withdraw allowed is up to 50% of the accumulated amount, which can be used to pay higher-education and future for the girl child for whom the account was opened.
You can open an SSY account at any nearest Post Office or you can visit any of the 28 authorized banks.
The Sukanya Samriddhi Yojana is backed by the government and the best part is it is tax exempted, making it one of the best suited for long-term investment for the future of your child.
The investment comes with a sovereign guarantee which makes it an attractive investment option for your girl child’s needs. But the 21-year lock-in can be a significant drawback for those who want to access the funds before this time.