Sukanya Samriddhi Yojana: The central government has a bunch of small savings schemes. These are super helpful for anyone looking to invest a little cash to create a solid fund for the future. If you’re thinking about saving for your daughter’s wedding or her higher education, putting your money into the Sukanya Samriddhi Yojana (SSY) could be a great choice. The cool thing about this scheme is that you can start investing with just Rs 250. Plus, the interest rate is better than many other options out there. You can also enjoy some tax benefits.
Key Takeaways
Quick Read- Can you transfer the account?
- When can you withdraw money?
- Can the SSY account be closed?
The government offers a sweet annual interest rate of 7.6% on the Sukanya Samriddhi Yojana. You can invest up to Rs 1.5 lakh each financial year. Just keep in mind, if you don’t invest at least Rs 250,000 in any financial year after opening the account, there’s a penalty of Rs 50.
If your daughter is under 10 years old, you can open an SSY account in her name. You can only have one account per daughter under this scheme. So, if you have two daughters, you’ll need to set up separate accounts for each of them. You can open an account at either a post office or a bank under the Sukanya Samriddhi Yojana.
Can you transfer the account?
Yes! Once you’ve opened a Sukanya Samriddhi Yojana account, you can transfer it anywhere in India. If the guardian shows proof of a change of residence, the transfer will be free. If you don’t have that proof, you’ll need to pay a fee of Rs 100 to the post office or bank where the account was originally opened.
When can you withdraw money?
This scheme matures when your daughter turns 21. You can’t withdraw any money until she’s 18. Even then, you can only take out 50% of the total amount. The full amount will be available when she turns 21. You can choose to get the money all at once or in installments. Withdrawals can only happen once a year, and if you go for installments, you can do that for a maximum of five years.
Can the SSY account be closed?
If the account holder dies under the Sukanya Samriddhi Yojana (Sukanya Scheme), the account can be closed by producing a death certificate. After this, the amount deposited in the Sukanya Samriddhi Yojana account can be returned to the girl’s guardian along with interest. In other cases, the SSY account can be closed after five years of opening. This can also be done in several circumstances. For example, it can be closed in case of life-threatening diseases. Even after this, if the account is being closed for some other reason, it can be allowed, but the interest on it will be given as per the savings account.