Sukanya Samriddhi Yojana (SSY) is a small savings investment option that was launched in 2015 as a part of Beti Bachao Beti Padhao campaign by PM Narendra Modi. It can also help to plan for your girl child’s future including their education and marriage.
It offers a fixed rate of interest along with tax benefits. Currently, the interest rate on SSY stands at 8.4%. Individuals can save a maximum of Rs.1.5 lakhs per financial year to receive tax benefits under the section 80C of Income Tax.
Individuals can open Sukanya Samriddhi account at any post offices and through participating commercial banks as well. Customers with net-banking facilities can easily apply for SSY account directly from their dashboards.
Interested parents or guardians need to submit basic KYC documents such as Aadhaar card or passport along with the SSY form with the initial investment.
You can download the application form from RBI’s website or participating bank’s website. Click here to download the application form.
The minimum and maximum annual investment towards this account are Rs. 250 and Rs.1.5 lakh in a financial year.
Investors have to invest for a minimum of 15 years to derive the benefits of the account.
The tenure of the account is 21 years or till she gets married after she crosses the legal marriageable age of 18 years.
For marriage purposes, she can withdraw 50% of the corpus and the remaining amount in the account continues to earn interest even if there are no fresh deposits.
The interest rate fetched by the account is fixed by the finance ministry along with the other small saving schemes and it is revised quarterly. Depending on the current interest rate scenario, the interest rate on the SSY account can move either way. It offers an attractive interest rate than other traditional saving options.
It is one of the few investment options that carry the EEE (Exempt, Exempt, Exempt). This indicates that the principal invested, the interest earned and the total maturity amount is exempt from taxation. This makes it one of the tax-saving instruments.
Interested investors can calculate the total maturity amount through Sukanya Samriddhi Yojana calculator that are easily available online. All you need to do is enter the investment amount per year, age of your girl child, and starting year of the investment.
Individuals who have opened their account online and check their Sukanya Samriddhi Yojana balance by logging in their net banking portal. Currently, there are no online ways to check the account balance for investors who have opened their account through a post office.
If you have been blessed with a girl child and want to give her best, you can look at Sukanya Samriddhi Yojana to plan for her future. It can also help you to invest for your daughter’s future, get assured returns, and save tax as well.Sukanya Samriddhi Yojana, best child plan, child future plan
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