Sukanya Samriddhi Yojana: Key Things To Know
The Sukanya Samriddhi Yojana was launched by the Centre in January 2015 as a part of its ‘Beti Bachao Beti Padhao' initiative to financially secure the future of the girl child. The small savings scheme offers a 7.6% interest rate per annum on the savings and the maturity amount is fully exempted under Section 80C of the Income Tax Act.
The small savings scheme gives the parents of a girl child the opportunity to build a long term corpus, which could be useful in funding the child's education and career.
Who can invest in the SSY scheme
Parents of a girl child or the legal guardians can open the savings accounts under this scheme at the designated post offices and bank branches. The savings accounts can be opened any time in the name of the girl child till she turns 10 years of age. The parents are allowed to open accounts only for two daughters. The accounts can be opened with a minimum investment of Rs 250 and in a financial year maximum of Rs 1.5 lakh can be deposited in one account.
After opening the account subsequent deposits can be made in multiples of Rs 100 and there is no limit on the number of deposits in a month or a financial year. In order to keep the account active a minimum of Rs 1000 should be deposited every financial year.
Experts advise depositing the money into the account by the 10th of every month to earn the interest for the month. The interest is calculated on the lowest balances in account between the 10th and last day of the month.
Maturity and Withdrawal
The accounts opened under SSY are valid only for 21 years or till the girl turns 18 and marries. Partial withdrawal of upto 50% of the total balance in an account at the end of the preceding financial year is allowed after the girl child turns 18.
How to open an SSY account
* Fill out the application form for opening the SSY account.
* Deposit the form at the designated bank branch or post office along with documents.
* The girl child's birth certificate, two photographs, ID proof and address proof of the parents/guardian will be needed for opening the account.
* Pay the required amount for opening the account and collect receipt.
