The Sukanya Samriddhi Yojana (SSY) is a small savings scheme launched by the Government of India under the Beti Bachao, Beti Padhao campaign. This scheme is designed specifically for the welfare of girl children, helping parents secure their daughters’ future with minimal investment and substantial returns. Let’s delve deeper into the plan’s benefits, features, and how it can help you accumulate up to ₹74 lakh with just ₹250.
What is Sukanya Samriddhi Yojana?
The Sukanya Samriddhi Yojana is a savings scheme that encourages parents to save for their daughters’ education, marriage, or other financial needs. The account can be opened at any post office or authorized bank in the name of a girl child.
The scheme offers one of the highest interest rates among small savings schemes in India, along with tax benefits under Section 80C of the Income Tax Act.
Key Features of the SSY Account
- Eligibility Criteria
- The account should be opened for a girl child under the age of 10 years.
- Only one account per girl child is allowed.
- Minimum and Maximum Investment
- The minimum deposit is ₹250 per year.
- The maximum deposit limit is ₹1.5 lakh per year.
- Tenure of the Account
- The account will mature after 21 years from the date of opening or when the girl gets married, whichever is earlier.
- Partial Withdrawals
- Up to 50% of the balance can be withdrawn for higher education after the girl reaches 18 years of age.
How to Earn ₹74 Lakh with SSY?
With disciplined investing, the Sukanya Samriddhi Yojana can generate substantial returns thanks to its attractive interest rate and compounding benefits. Let’s look at an example:
- Monthly Contribution: ₹12,500 (₹1.5 lakh annually)
- Tenure: 15 years (contributions) + 6 years (compounding without contributions)
- Interest Rate: Approximately 8% (subject to periodic changes by the government)
By the end of the 21-year term, the total maturity amount can reach approximately ₹74 lakh. Even smaller contributions can grow significantly due to the power of compounding over a long period.
Benefits of the Sukanya Samriddhi Account
- High Interest Rate
The interest rate for SSY is one of the highest among small savings schemes, making it a lucrative option for long-term investments. - Tax Benefits
Deposits made under SSY qualify for tax deductions. Additionally, the interest earned, and the maturity amount are exempt from tax, making it an EEE (Exempt-Exempt-Exempt) instrument. - Financial Security for the Girl Child
This scheme ensures that parents can systematically save for their daughter’s future, covering major expenses like education and marriage. - Flexibility in Contributions
The Sukanya Samriddhi Yojana allows flexibility in contributions, with a minimum deposit of ₹250 per year, making it accessible to a wide range of income groups.
Who Should Invest in Sukanya Samriddhi Yojana?
This scheme is ideal for parents who wish to secure their daughters’ future with guaranteed returns. It is particularly suited for:
- Parents looking for long-term investment plans with tax benefits.
- Families seeking a low-risk savings scheme.
- Those who want to inculcate disciplined savings habits for their children’s future.
How to Open a Sukanya Samriddhi Account?
Opening an SSY account is a simple process for the Sukanya Samriddhi Yojana
- Visit a post office or authorized bank branch.
- Fill out the Sukanya Samriddhi Account opening form.
- Submit necessary documents such as the girl child’s birth certificate, the parent/guardian’s ID and address proof.
- Make an initial deposit (minimum ₹250).
Upon successful verification, the account will be activated, and a passbook will be issued.
Things to Keep in Mind
- Timely Contributions
A minimum deposit of ₹250 is required annually to keep the account active. Failure to do so will render the account inactive, which can be revived with a penalty. - Interest Rate Variability
The Rate of interest is subject to periodic revisions by the government. make sure you stay updated on the latest rates. - Premature Closure
The account can only be prematurely closed under specific circumstances, such as the death of the account holder or extreme financial hardship.
Conclusion
The Sukanya Samriddhi Yojana is an excellent financial tool for parents aiming to secure their daughters’ future. With a small yet consistent investment, the plan offers the potential to grow your savings significantly over time. Whether you aim to fund higher education, marriage, or any other milestone, SSY ensures financial stability and peace of mind. Start early and let the power of compounding work in your favor.
