Sukanya Samriddhi Yojana (SSY): If you are currently planning for your daughter’s education, higher studies, or marriage, the SSY scheme could prove to be the best option for you. This scheme was launched under the Government of India’s ‘Beti Bachao, Beti Padhao’ (Save the Daughter, Educate the Daughter) campaign. Its primary objective is to secure the future of daughters. Investing in the SSY scheme offers not only the benefit of safe savings but also attractive interest rates, tax benefits, and a substantial corpus upon maturity.
Currently, the scheme offers an annual interest rate of up to 8.2%. This interest is calculated on an annual compounding basis, making the scheme a popular choice for long-term investment. If you have a daughter under 10, you can open an account in her name, start investing with a small amount, and build a significant fund over time. Let us explore the details of this scheme.
What is the Sukanya Samriddhi Yojana (SSY)?
The SSY scheme is a small government savings scheme specifically launched to secure the future of daughters. Under this scheme, parents or legal guardians can invest in their daughter’s name. The invested amount grows over time as interest accumulates. The scheme aims to provide financial support for needs such as higher education, professional courses, career development, and marriage.
Know the current interest rate
Currently, the SSY scheme offers an annual interest rate of 8.2%. A key feature of this scheme is that the interest is calculated on an annual compounding basis. Long-term investment allows for earning interest on the accumulated interest, causing the invested amount to grow rapidly. The government periodically reviews and adjusts the interest rate and other terms of the scheme as needed.
Where can the account be opened?
A Sukanya Samriddhi Yojana account can be opened at various locations across the country. You can open this account at any nearby post office or at a government-authorised commercial bank. Facilities to open this account are available at banks such as the State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda, Canara Bank, Union Bank of India, Bank of India, Indian Bank, UCO Bank, Central Bank of India, HDFC Bank, ICICI Bank, and Axis Bank, among other authorised banks.
Who can open the account?
The benefits of this government scheme are available exclusively for girl children. To open the account, the daughter must be under 10 years of age. The account is opened by the parents or a legal guardian. Only one Sukanya Samriddhi account can be opened in the name of a girl child. Per family, accounts can be opened for up to two daughters, subject to prescribed rules. Specific government rules apply in cases of the birth of twins or triplets.
How much money can be deposited in a year?
You can invest in this scheme according to your convenience. The minimum annual investment is ₹250, while the maximum annual investment is ₹1.5 lakh. This amount can be deposited either in a lump sum or in instalments.
For how many years must deposits be made?
After opening a Sukanya Samriddhi Yojana account, you are required to make deposits for 15 years. Even after this period, the account continues to earn interest, and the scheme matures after 21 years. This means that if you have invested regularly for 15 years, your deposited amount will continue to earn interest during the remaining period without requiring any further investment.
When does the scheme mature?
The scheme matures 21 years from the date of account opening. Upon maturity, the entire invested amount along with the accrued interest is paid to the beneficiary. Additionally, investors have the facility of partial withdrawal.
Is the facility for partial withdrawal available?
Partial withdrawal is permitted under certain specific circumstances. If the daughter enrols for higher education, a partial amount can be withdrawn from the account in accordance with the prescribed rules. Withdrawal conditions apply in accordance with government regulations.
What documents are required?
The following documents are required to open a Sukanya Samriddhi Yojana account: the daughter’s birth certificate; parents’ proof of identity (such as Aadhaar, Voter ID, passport, etc.); proof of address; passport-sized photographs; Aadhaar and PAN cards; and the account opening application form.
Know the key benefits of the scheme
The Sukanya Samriddhi Yojana is popular among investors for several reasons. Firstly, it is a government-backed scheme. Currently, it offers an interest rate of 8.2 per cent, along with the benefit of compound interest. Investments in this scheme can range from ₹250 to ₹1.5 lakh. Additionally, the scheme offers tax benefits under Section 80C.
How much of a corpus will be created with an investment of ₹1.5 lakh?
If a guardian regularly deposits the maximum amount of ₹1.5 lakh each financial year and the interest rate remains constant throughout the investment period, a substantial corpus can be accumulated upon the completion of the 21-year tenure. However, the maturity amount will depend on the prevailing interest rate, the deposit dates, and any government interest rate revisions from time to time. Consequently, the actual amount may vary.
Conclusion
The Sukanya Samriddhi Yojana (SSY) is one of the Government of India’s most popular savings schemes designed to financially secure the future of daughters. Currently, the scheme offers an annual compound interest rate of 8.2%. Parents or legal guardians can open this account at a post office in the name of a girl child under 10. Annual deposits can range from ₹250 to ₹1.5 lakh. Consistent long-term investment can help build a substantial fund to meet essential needs such as the daughter’s higher education, career, and marriage.