The Sukanya Samriddhi Yojana (SSY) is emerging as a popular investment option for parents with daughters. A family can open up to two accounts, one for each girl child (there are exceptions for twins or triplets).
The scheme aims to help parents build savings for their daughters' future, especially for higher education and marriage. With a small minimum deposit of Rs 250, it allows families to start saving early and is part of the ‘Beti Bachao, Beti Padhao' initiative.
Key Features Of Sukanya Samriddhi Yojana
The SSY scheme can be opened in the name of a girl child before she turns 10. The maximum deposit allowed is Rs 1.5 lakh in a financial year. Only one account can be opened for each girl child. The account can be opened at post offices and authorised banks across the country. The deposits need to be made for a period of 15 years, but the account matures in 21 years.
The account can be prematurely closed in case of marriage of a girl child after her attaining the age of 18 years. The corpus keeps earning 8.2% returns per annum and also comes with tax benefits.
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Partial Withdrawal Rules
The Sukanya Samriddhi Account Scheme allows partial withdrawal for the higher education of the girl child. An account holder can withdraw up to 50% of the balance available at the end of the previous financial year. This facility is available after the girl turns 18 or passes Class 10, whichever comes first.
To withdraw the money, an application in Form-3 must be submitted along with proof of admission or a fee slip from the educational institution. The withdrawal can be made in one lump sum or in yearly installments. However, it cannot exceed one instalment per year for a maximum of five years. Parents should note that the withdrawal amount is limited to the actual education expenses.
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The account matures after 21 years from the date of opening. It can also be closed early if the account holder is getting married after turning 18. For this, proof of age and a signed declaration are required. Once the account matures or is closed early, the balance and the interest earned is paid to the account holder.
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