The SSY Scheme, also known as the Sukanya Samriddhi Yojana, is a government-backed savings scheme specifically designed for the benefit of the girl child. Launched by the Government of India under the Beti Bachao Beti Padhao campaign,
SSY aims to encourage parents to build a fund for the future education and marriage expenses of their girl child.
Eligibility:
1. Age Criteria: A Sukanya Samriddhi Yojana account can be opened for a girl child from her birth up to the age of 10 years.
2. Number of Accounts: A maximum of two SSY accounts can be opened for two girl children in a family, and in the case of twins/triplets, the third account can also be opened.
Key Features of Sukanya Samriddhi Yojana:
1. Account Opening:
SSY accounts can be opened by the natural or legal guardian (parents or guardians) of the girl child.
The account can be opened with a minimum initial deposit, which varies by bank or post office but is generally low (often around ₹250 or less).
2. Contribution:
Contributions to the SSY account can be made until the completion of 15 years from the date of opening the account.
The minimum annual contribution is ₹250, and the maximum contribution can go up to ₹1.5 lakh in a financial year.
Contributions can be made in the form of cash, cheque, demand draft, or online transfer.
3. Interest Rate:
The interest rate for SSY is set by the government quarterly and is compounded annually.
The interest rate is typically higher compared to other small savings schemes and is announced by the government.
4. Tax Benefits:
Contributions made to SSY qualify for tax deduction under Section 80C of the Income Tax Act, up to a maximum of ₹1.5 lakh per financial year.
The interest earned and the maturity amount are also exempt from income tax.
5. Withdrawal:
Partial withdrawal up to 50% of the balance is allowed for the girl child's higher education or marriage after she attains the age of 18 years.
The account matures after completion of 21 years from the date of opening the account, or earlier if the girl child gets married after attaining 18 years of age.
6. Account Operation:
The SSY account can be transferred anywhere in India if the girl child relocates.
Parents/guardians manage the account until the girl child turns 18 years old, after which she can operate it herself.
7. Penalty for Default:
If minimum contributions are not made in any year, the account will be considered as a defaulted account, and revival can be done with a penalty.
Benefits of Sukanya Samriddhi Yojana:
Financial Security: SSY helps in building a significant corpus for the future educational and marriage expenses of the girl child.
High Interest Rates: The scheme offers attractive interest rates that are higher than those offered by many other small savings schemes.
Tax Benefits: Contributions, interest earned, and maturity proceeds are exempt from income tax, making it a tax-efficient savings option.
Empowerment: SSY promotes the welfare and empowerment of the girl child, encouraging parents to invest in her future.
Drawbacks:
Long Lock-in Period: The funds in SSY are meant for long-term goals, and early withdrawals may attract penalties.
Limited Scope: The scheme is specifically designed for the benefit of the girl child, which may limit its applicability for families with only male children.
Conclusion:
Sukanya Samriddhi Yojana is a beneficial savings scheme aimed at securing the future of girl children in India. It offers attractive interest rates, tax benefits, and flexibility in contributions and withdrawals, making it a preferred choice for parents looking to invest in their daughters' future education and marriage expenses. Understanding the eligibility criteria, contribution rules, and benefits is essential for parents and guardians considering SSY for their girl child's financial planning.