The government-sponsored Sukanya Samriddhi Yojana (SSY) encourages parents to set aside money for their daughter’s future education and marriage costs. This scheme was established as part of the “Beti Bachao, Beti Padhao” campaign by Prime Minister Narendra Modi in January 2015.

In accordance with Section 80C of the Income Tax Act, SSY is a long-term savings plan that offers tax advantages. The program is exclusively open to parents or legal guardians of girls under the age of 10.

The goal of this programme is to empower girls by encouraging parents to save money for their daughters’ future education and marriage costs, which were previously thought to be a financial burden on the parents.

Here are some of the key features of the Sukanya Samriddhi Yojana:

Account opening: Parents or guardians can open an SSY account in any post office or authorized bank branch across India.

Minimum and Maximum deposit: The minimum deposit required to open an SSY account is Rs. 250, and the maximum deposit limit is Rs. 1.5 lakhs per annum.

Interest rate: The interest rate on SSY accounts is reviewed and revised by the government every quarter. As of January 2023, the interest rate is 7.6% per annum.

Tenure: The maturity period of the scheme is 21 years from the date of opening the account. However, partial withdrawals are allowed after the girl child attains the age of 18 years for higher education or marriage expenses.

Tax benefits: Investments made in SSY accounts are eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum of Rs. 1.5 lakhs per annum. Additionally, the interest earned and the maturity amount are also tax-free.

Penalty for non-deposit: If the minimum deposit is not made in any financial year, the account will become inactive. The account can be reactivated by paying a penalty of Rs. 50 per year, along with the minimum deposit for that year.

Account closure: The account can be closed prematurely in case of the girl child’s unfortunate demise. In such cases, the entire amount, along with interest, will be paid to the parent or guardian.

Benefits of Sukanya Samriddhi Yojna:

This scheme comes with several benefits, some of which are listed below:

High Interest Rates: When compared to other government-sponsored savings plans, Sukanya Samriddhi Yojana offers a high interest rate. Every three months, the government reviews and changes the interest rate. The interest rate is 7.6% a year as of January 2023.

Tax Benefits: Up to a maximum of Rs. 1.5 lakh per year, investments made in Sukanya Samriddhi Yojana accounts are eligible for tax deductions under Section 80C of the Income Tax Act. Furthermore, both the interest received and the maturity sum are tax-free.

Long-term investments: The Sukanya Samriddhi Yojana has a 21-year maturity period starting on the day the account is opened. As a result, it is the best long-term savings choice for parents who wish to set aside money for their daughter’s future wedding and educational costs.

Partial Withdrawals: After their daughter is 18 years old, parents may withdraw up to 50% of the account’s total value for her higher education or wedding costs.

Safe Investment: The Sukanya Samriddhi Yojana is a savings programme endorsed by the government that guarantees the security and safety of the investment.

In conclusion, Sukanya Samriddhi Yojana offers an excellent investment option for parents who want to secure their daughter’s future. With high-interest rates, tax benefits, and flexible deposit options, this scheme is a great way to save for the girl child’s education and marriage expenses.