The Sukanya Samriddhi Yojana (SSY) is a high-interest, tax-free Indian savings scheme for girls' education and marriage expenses.
The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme in India that is specifically designed to help parents save for their daughters' education and marriage expenses. Launched in 2015, the SSY has quickly become a popular choice for parents looking to secure their daughters' financial future.
Benefits of the Sukanya Samriddhi Yojana:
One of the major benefits of the SSY is its high interest rate. Currently, the SSY offers an interest rate of 7.6 per cent per year, which is significantly higher than the interest rates offered by most other savings schemes in India. This means that by investing just INR 10,000 per month in the SSY, a parent can accumulate over INR 52 lakhs over a period of 21 years.
In addition to the high interest rate, the SSY also offers a range of other benefits. For example, the SSY has a tax-free status, which means that the interest earned and the maturity amount are not subject to income tax. This can help parents save even more money in the long run.
Another advantage of the SSY is that it can be opened at any time from the birth of a daughter until she turns 10 years old. This means that parents have a decade to start saving for their daughters' future needs. The SSY also has a flexible investment tenure of 21 years, which means that parents can choose to keep their investments in the scheme for as long as they wish, provided their daughters are under the age of 21.
Explaining with an example:
To give an example of how the SSY works, let's consider a parent named Rohit who has a daughter named Pooja. Rohit wants to start saving for Pooja's education and marriage expenses, so he decides to invest INR 10,000 per month in the SSY. Over a period of 21 years, Rohit will have invested a total of INR 25.2 lakhs in the SSY. With an annual interest rate of 7.6 per cent, the total maturity amount of Rohit's investment will be INR 52 lakhs. This means that Rohit will have earned INR 26.8 lakhs in interest over the course of the investment period.
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Know how to apply:
To apply for the SSY, parents will need to visit the nearest post office or bank that offers the scheme and fill out an application form. They will also need to provide proof of their daughter's age and their own identity. Once the application is approved, parents can start making investments in the SSY.
Know who is eligible for the Sukanya Samriddhi Yojana:
To be eligible for the Sukanya Samriddhi Yojana (SSY), an individual must meet the following criteria:
1. The SSY can only be opened in the name of a girl child who is below the age of 10.
2. The account can be opened by the natural or legally adoptive parents of the girl child.
3. The SSY account can be opened in any post office or authorized bank in India.
4. A maximum of two SSY accounts can be opened per family.
5. The minimum investment amount for the SSY is INR 250 per year. There is no maximum investment limit.
6. The SSY account can be opened with a single deposit of INR 1,000 or more.
7. The SSY account can be transferred from one post office or bank to another if the individual moves to a different location.
8. The SSY account can be opened in the name of a child who is a citizen of India, regardless of their place of birth or residence.
9. The SSY account must be closed when the girl child reaches the age of 21 or gets married, whichever occurs first.
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