Sukanya Samriddhi Yojana Benefits: Secure Your Daughter’s Future

Sukanya Samriddhi Yojana is one such much-talked-about saving scheme brought into effect by the Government of India to give a fillip to the cause of girl child development. A lot of benefits are accruing from this program that shall be discussed in this article, and it is definitely an excellent investment option for parents.

What Is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana is a small-savings scheme launched by the Government of India under the campaign “Beti Bachao, Beti Padhao.” It was essentially started in the year 2015 as an initiative to motivate parents towards saving money for education and marriage expenses of their female child.

Salient Features of Sukanya Samriddhi Yojana

1. Interest Rate-END

The most attractive feature of Sukanya Samriddhi Yojana comes in the form of a high interest rate. This scheme provides one of the highest interest rates against all Government-backed savings schemes in India. The interest rate as of [current year] is [current rate]% annum, compounded annually.

 2. Tax Benefits

SSY offers excellent tax benefits under Section 80C of the Income Tax Act:

• Contributions as much as ₹1.5 lakh per financial year are allowed as tax deduction

• Interest gained plus the maturity amount is fully exempt from tax

Triple taxation exemption makes this scheme the most attractive arm of investment instrument for the savings by the parents for a better future of their daughters.

 3. Long-term Savings

The Sukanya Samriddhi Yojana is a long-term saving instrument. This account will mature after 21 years from the date of opening or when the girl child turns 18, whichever is later. This long-term approach assures substantial growth of the invested amount over some time.

 4. Partial Withdrawal Facility

While the scheme talks about long-term savings, this scheme also brings partial withdrawal options to the table for flexibility:

Up to 50% of the balance can be withdrawn for the girl’s higher education expenses after she turns 18

This feature helps parents meet significant education-related costs without compromising on the overall savings goal

 5. Government Backing

Being a government-backed scheme, SSY invests with a very high level of security attached to it. The returns under the scheme are government guaranteed, and it also makes it very secure and reliable for a conservative investor.

6. Low Minimum Deposit

Being, perhaps, one of the schemes which has the smallest entry barrier, it fixes the minimum amount of deposit per annum as an easy ₹250. It just makes it very accessible to families across a broad swath of income ranges to start saving for their daughter’s future with a very minimal investment at the beginning.

7. Maximum Deposit Limit

Though the minimum deposit is very low, still the plan provides for quite a significant amount of savings. On the other hand, the maximum deposit that can be made per year is ₹1.5 lakh, which encourages parents to save substantially enough to solve daughters’ future problems.

 Eligibility Criteria for Sukanya Samriddhi Yojana

The requirements for SSY schemes are basically made to connect those of a girl child below the age of 10 years at the time of account opening.

– The maximum number of accounts allowed per family is two for two different girl children

– Parents or legal guardians may open an account

 Opening a Sukanya Samriddhi Account

Opening an SSY account is not a laborious task. The following steps are involved in opening an SSY account:

1: Go to an authorized bank or any post office

2: Fill the application form

3: Subscribers must provide the necessary documents, such as a birth certificate of the Girl Child and Proof of Identity of the Parent/Guardian.

4. Deposit the initial amount

 Maturity and Rules of Premature Withdrawal

Maturity and premature withdrawal rules of SSY is much such that properly if understood it can help the subscriber gain maximum benefits from SSY :

– Maturity is after 21 years from the date of opening an account

• Recurring deposit for 15 years; interest shall continue to accrue on the account till maturity

• Premature closure of the account is permitted only in case of marriage of the account holder after attaining the age of 18 years.

 Comparison with Other Savings Schemes

Compared to other popular savings schemes like PPF or Fixed Deposits, SSY normally comes at the top because of its high interest rate, long investment tenure, and focus on welfare directed toward the girl child, and, not to forget, Triple tax benefits.

Conclusion: Empowering the Girl Child

Whereas one looks at the Sukanya Samriddhi Yojana, much more than being just a savings scheme, it is a step toward the empowerment of the girl child in India. It has gone a long way to secure the future of the girl child concerning issues of financial security and motivating them to study further.

Due to the plethora of benefits associated with this scheme in the form of a deliberately kept high interest rate, tax benefits, and government backing, this is a really good way to secure the daughter’s future immensely for the intending parent. If started early enough, then the power of compounding works, and a good corpus for education and other life goals can be built for the daughter.

Now, bearing this in mind, schemes such as Sukanya Samriddhi Yojana are giant steps toward bridging the gap between both sexes and developing girls—that is, every girl child shall be allowed to dream about which would not be rendered impossible by monetary constraints.