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What is Sukanya Samriddhi yojana(SSY)?
 

Every parent dreams of seeing their daughter grow into a strong, independent individual who stands on her own feet and achieves great things in life. But as time passes, many girls slowly start letting go of their dreams. There are several reasons for this. But the main reasons are, rising education costs, societal pressure, or even discrimination. Unfortunately, these challenges often force young girls to step back from their ambitions.

Understanding this struggle, the Government of India introduced the Sukanya Samriddhi Yojana in 2015 as part of the Beti Bachao, Beti Padhao initiative. This scheme was designed with a simple yet powerful goal to secure the future of every girl child by providing financial support for her education and dreams.

In this article, we will see everything you need to know about the Sukanya Samriddhi Yojana: what it is, how it benefits you, and how you can apply for it so that no dream of any girl has to be left behind due to financial constraints. 

What is Sukanya Samriddhi Yojana (SSY)?
 

This scheme is run by the government of India, and allows parents to open savings accounts for their minor daughters. The investment made in this account offers many facilities like good interest rates, tax benefits and investment security.

Here are the key features of the Sukanya Samriddhi Yojana (SSY):

Age Eligibility:
 

To avail of the benefits of this scheme, the girl child must be below 10 years of age at the time of opening the account.


Interest Rate:
 

The scheme offers an attractive fixed interest rate of 8.2%, which is higher than most other fixed-income investment options. Since this is a government-backed scheme, it carries zero risk, making it a safe and reliable option for long-term savings.
 

Tax Benefits:
 

Under Section 80C of the Income Tax Act, 1961, investments made in the Sukanya Samriddhi Yojana qualify for a tax deduction of up to ₹1.5 lakh per year. Additionally, the interest earned and the maturity amount are also completely tax-free.

Deposit Method:
 

Minimum Annual Investment: Before the year 2022, the minimum amount to deposit was Rs 1000. After that, the government has reduced  this amount to Rs 250.

Maximum Annual Investment: A maximum of Rs 1.5 lakh can be invested per year through this scheme.
 

Investment Period:

You can invest up to 15 years after opening the account. After that, the interest rates are matched up to the maturity period without making any investment.

Maturity Period:
 

The maturity period in this scheme is 21 years. The maturity period is considered to be 21 years after the account is opened or 21 years of the girl child, whichever is less. That is, the investment cannot be withdrawn until the completion of these 21 years.

In addition to this, if the girl child needs it for higher education after 18 years, then she can avail 50% of the total amount.
 

Management of the account: 
 

The girl child's account is managed by the guardian until she turns 18. After that, its full rights go to the girl child.

How to Open a Sukanya Samriddhi Yojana (SSY) Account?

 

Account Opening Process:
 

You can open an SSY account at any post office or an authorized commercial bank. The process is simple and requires minimal paperwork.

Required Documents:
 

To open an SSY account, you need the following documents:

• SSY Application Form (available at the bank/post office)

• Birth Certificate of the girl child

• KYC Documents of Parents/Guardians, such as: 

Aadhaar Card, PAN Card, Address Proof (Electricity Bill, Ration Card, or Aadhaar Card)

In some special cases, a Medical Certificate may be required if the girl has any health-related conditions.
 

Account Transfer Facility:
 

If you relocate to a different city or town, you can transfer your SSY account to the nearest post office or bank to continue the scheme without any hassle.

Through an example, let us understand how beneficial Sukanya Samriddhi Yojana is in real life:

Suppose,

A girl is born in January 2024, and her account is opened in the same month.

Investment to be made every year: Rs. 1,50,000.

Investment period: 15 years (2024 to 2038)

Maturity period: 21 years from the date of opening the account (i.e. January 2045)

Interest rate: 8.2% per annum (compounded annually)
 

The investment and interest earned per annum will be as follows:

What Can We Learn from the Above Example?

• Total Value After 15 Years (by 2039):
  
  After investing ₹1,50,000 annually for 15 years, the total corpus grows to approximately ₹54 lakh.

• Compound Interest Mechanism:
  
  Every year, interest is calculated on the previous year's balance plus the new investment. This ensures that the investment grows significantly over time.

• Power of Compounding:
  
  Thanks to the power of compound interest, after 21 years, the total amount reaches approximately ₹1.05 crore. This highlights why long-term disciplined investing is crucial for building wealth.

Conclusion:
 

Sukanya Samriddhi Yojana is not only for empowering the girl child's future but also for saving tax for you as a parent. The facility to start investing from Rs 250 to Rs 1.5 lakh makes this scheme special. This scheme can create a strong financial foundation for the girl child's education, marriage and other future needs.

If you are satisfied with the above information and criteria, then definitely take advantage of this scheme for your daughter's future!

Download the Finshak APP for more information, and start investing today!

https://play.google.com/store/apps/details?id=com.finshakapp.app&pli=1

FAQ:

1. Who can avail the benefits of Sukanya Samriddhi Yojana?
 

Ans: All girls below 10 years of age can avail the benefits of Sukanya Samriddhi Yojana.
 

2. What is the minimum amount required to open Sukanya Samriddhi Yojana (SSY)?
 

Ans: A minimum amount of Rs 250 is required to open and maintain an account under this scheme.
 

3. Can money be withdrawn from the SSY account before the maturity period?
 

Ans: If the girl falls ill or suffers from a harmful disease, she or her parents can withdraw her money from the SSY account after the approval of the government.
 

4. What is the maximum amount that can be deposited in the SSY account?

Ans: Under Sukanya Samriddhi Yojana, you can invest up to Rs 1.5 lakh per year for your girl child.

5. How many SSY accounts can be opened for a single girl child?

Ans: Only one SSY account can be opened for a girl, but if there are two girls or twins in the family, separate accounts can be opened for them.

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