SSY – Sukanya Samridhi Yojana

Sukanya Samriddhi Yojana (SSY) is a savings scheme launched back in 2015 as part of the Government initiative “Beti Bachao, Beti Padhao” campaign  to encourage saving for the girl child’s future

This scheme enables guardians to open a savings account for their girl child with an authorised commercial bank or India Post branch.

A Sukanya Samriddhi Account can be opened any time after the birth of a girl till she turns 10, with a minimum deposit of Rs 250 in any post office or authorised branches of commercial banks.

FEATURES OF SSY

Key features of this scheme are as below –

  • The lock-in period of the Sukanya Samriddhi Yojana is 21 years. For example, if the account is opened when the girl is 5 years old, it will mature when she reaches the age of 26.
  • Minimum deposit amount = Rs.250 per year; Maximum deposit amount = Rs.1,50,000 per year.
  • The account can be prematurely closed in the event of death of the depositor.
  • The account is opened and operated by the natural or legal guardian of the girl child in her name till she turns 10.

ELIGIBILITY OF SSY –

  • Sukanya Samriddhi Account can be opened only in the name of the girl child by her parents or legal guardians
  • The girl child has to be below the age of 10 at the time of account opening
  • Multiple Sukanya Samridhhi accounts cannot be opened for a single girl child
  • Only two SSY accounts are allowed for a family i.e. one for each girl child

HOW TO APPLY FOR THIS SCHEME ?

Sukanya Samriddhi account can be opened by visiting a post office or any authorised bank branch that offers this scheme. The application form has to be filled & following documents are required to be submitted :

  • An account opening form duly filled in
  • Birth certificate of the girl child.
  • ID and address proofs of the depositor.
  • Medical certificates as proof of birth of multiple girl children at once.
  • Any other document as requested by the bank or post office.

After the account is opened an initial investment of at least Rs 1,000 through cash, cheque, demand draft or online payment has to be made.

BENEFITS OF SSY :

  • Under Section 80C of the Income Tax Act, 1961, tax benefits of up to Rs.1.5 lakh are provided for contributions made towards the scheme.
  • Can be freely transferred from one part of the country to another (bank/post office) in case of transfer of parent/guardian operating the Sukanya Samriddhi Account.
  • The interest amount that is generated is also exempt from tax.
  • The fixed rate of return in this scheme is higher i.e currently 7.6% as compared to other tax saving schemes of government such as PPF.

 

Thus, in simple terms, Sukanya Samriddhi Yojana (SSY) scheme was launched by the Government of India under the Beti Bachao Beti Padhao campaign with the main aim of securing the future of a girl child which can be opened by the parents of a girl child below the age of 10.

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