The Sukanya Samriddhi Yojana (SSY) is a flagship savings scheme under Beti Bachao, Beti Padhao, aimed at ensuring a bright financial future for the girl child. It offers one of the highest interest rates among small-savings schemes, along with full tax benefits and government-backed security.
Eligibility & Key Rules
- A parent or legal guardian can open the account for a girl below 10 years.
- Minimum deposit: ₹250 per year; Maximum: ₹1.5 lakh per year.
- The investment period is 15 years from the date of account opening, and the account matures after 21 years from the date of opening.
- Interest rate: about 8.2% per annum (revised quarterly).
- EEE status: deposits, interest, and maturity amount are all tax-free.
Potential Returns & Withdrawal & Use
To achieve the common calculator-derived figure of approximately ₹70.23 lakh (at the current 8.2% rate), the investment must be for the full 15-year deposit period.
Withdrawal & Use
- Up to 50% withdrawal allowed after the girl turns 18 for higher education.
- Full withdrawal permitted at 21 years or on marriage after 18.
Conclusion
The Sukanya Samriddhi Yojana (SSY) stands as one of India’s most trusted and rewarding savings schemes for the girl child, offering both financial security and emotional assurance to parents. With its government-backed guarantee, tax exemptions, and one of the highest interest rates among small savings instruments, it encourages disciplined, long-term investment.
FAQs
1. Can both parents open separate SSY accounts for the same daughter?
Ans: No. Only one SSY account per girl child is allowed. However, parents can open up to two accounts if they have two daughters (or three in case of twin girls after the first child).
2. What happens if the minimum ₹250 deposit is not made in a year?
Ans: If the minimum deposit isn’t made, the account becomes inactive. It can be reactivated by paying a penalty of ₹50 per year along with the pending minimum deposit.
3. Can the SSY account be transferred if the family moves to another city?
Ans: Yes. The account can be transferred free of cost to any post office or authorized bank branch in India by submitting a transfer request and the passbook.
4. Is premature closure allowed?
Ans: Premature closure is permitted only under specific conditions, such as the death of the account holder, medical emergencies, or change in the girl’s residency status (NRI).
5. What makes SSY better than a normal bank FD or mutual fund?
Ans: SSY offers guaranteed returns, tax-free maturity, and government-backed safety, unlike mutual funds that carry market risk or FDs that offer lower post-tax returns. It’s a safe and long-term savings plan designed exclusively for the girl child.
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