Every parent worries about their beloved daughter’s education and marriage expenses. But now, there is a very effective and reliable way to alleviate this concern – the Government of India’s Sukanya Samriddhi Yojana (SSY). If you want your daughter’s future to be financially secure and strong, this scheme can indeed prove to be one of the best options for you. By investing in this scheme, you can not only plan savings for your daughter’s major expenses but also avail the benefit of excellent tax exemption.
Sukanya Samriddhi Yojana is a special small savings scheme launched under the ‘Beti Bachao, Beti Padhao’ campaign. It has been specifically designed keeping in mind the secure future of daughters. The most significant feature of this scheme is that the amount deposited earns an attractive interest rate decided by the government. Currently, this scheme is offering an interest rate of 8.2% (this rate may change after review by the government on a quarterly basis). Under Section 80C of the Income Tax Act, 1961, you can claim tax exemption on investments up to ₹1.5 lakh. And the biggest advantage is that the interest earned and the entire amount received upon maturity are completely tax-free (EEE status). This scheme is most suitable for guardians whose daughter is less than 10 years old.
How to Open an SSY Account?
Opening a Sukanya Samriddhi Yojana account is very simple. You can open it by visiting any authorized bank branch or Post Office. To open the account, you will need some necessary documents such as the daughter’s birth certificate, the guardian’s (parents’) identity proof, and address proof. Along with these documents, you will need to fill and submit the SSY Account opening form.
How much amount can be deposited?
In an SSY account, you can deposit a minimum amount of ₹250 and a maximum of ₹1.5 lakh in a financial year. This scheme is quite flexible, meaning you can deposit money regularly every year according to your convenience and income. Your deposited amount will earn returns at the current high interest rate.
Deposit Period and Maturity:
This account remains active for 21 years from the date of opening or until the daughter’s marriage after the age of 18 (with certain conditions). However, you are only required to deposit money for the first 15 years from the account opening date. After that, your deposited amount continues to earn interest for the next 6 years (until the 21-year period is completed), even if you make no further deposits. This gives your investment extra time to grow.
Status of Online Facility:
Currently, the facility to open a Sukanya Samriddhi Yojana account completely online is limited. In most cases, you have to visit a bank or post office to open the account manually. However, once the account is opened, you can easily set up a Standing Instruction via Net Banking or Mobile Banking to deposit money online into your SSY account, which will save you from visiting the branch repeatedly.
What to do if SSY Account Defaults?
If for some reason you are unable to deposit the minimum amount of ₹250 in any year, your SSY account may become ‘Account Under Default’. To reactivate it, you can restart it by paying a penalty of ₹50 for the defaulted year along with the minimum deposit amount (₹250) for that year’s arrears. You can reactivate a defaulted account anytime within the first 15 years from the account opening date.
This scheme not only provides financial benefits but also helps in realizing your daughter’s future dreams. The interest rate of SSY is generally better than other small savings schemes available in the market. Additionally, the complete tax exemption makes it even more attractive. Parents can open two separate SSY accounts for their two daughters. If twins or triplets are born in the second birth, a total of three accounts can also be opened. This is a fantastic way to build a substantial saving over the long term with even small investments, which can ensure sufficient funds for your daughter’s higher education or marriage.