All You Need To Know About Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana (SSY) is a Government of India savings scheme that is a part of the Beti Bachao, Beti Padhao scheme. The parents of a female child under the age of 10 can register for a Sukanya Samriddhi Yojana account at post offices or banks. The Sukanya Samriddhi Yojana account will remain active until the female child reaches the age of 21 or if she is married after reaching the age of 18. The Sukanya Samriddhi Yojana scheme is to encourage parents to invest in their daughters’ education so that they will have access to funds to pursue their higher studies and have a foundation for a good future.

Sukanya Samriddhi Yojana’s Eligibility Criteria

Since the Government of India has made the Sukanya Samriddhi Yojana scheme available to all, you can create an account at any post office or bank. These are the eligibility criteria for creating a Sukanya Samriddhi Yojana account:

• Only a female child’s parents or guardians may create a Sukanya Samriddhi Yojana account.
• The female child must be under 10 when the account is opened. The account can remain active until the female child reaches turns 21.
• The first investment may start at Rs. 250 and the maximum investment amount is Rs. 1,50,000.
• A single female child cannot have multiple Sukanya Samriddhi Yojana accounts.
• Each family is only allowed only two Sukanya Samriddhi Yojana accounts, for two daughters only.
• A third account can be opened if a female child is born before twin or triplet daughters.
• A third Sukanya Samriddhi Yojana account can’t be created if a female child is born after twins or triplet daughters.

How To Open A Sukanya Samriddhi Yojana Account

You can open a Sukanya Samriddhi Yojana account at any licensed post office or bank by following these steps:

• Visit your local post office or bank to create a new Sukanya Samriddhi Yojana account.
• Complete the registration form with the required information and documents.
• Submit the initial cash deposit, check or demand draft. This initial amount can be from Rs. 250 to Rs. 1.5 lakh.
• The post office or bank will process your request and transaction.
• After verification and processing, your Sukanya Samriddhi Yojana account will be activated and a passbook will be issued.

Sukanya Samriddhi Yojana Required Documents

When opening your Sukanya Samriddhi Yojana account at the post office or bank, these are the required documents:

• Female child’s birth certificate
• Verification of the parents’ identity and residence
• Other KYC documents include voter’s ID, Aadhaar card and more
• Any other important documents requested by the post office or bank

Benefits Of The Sukanya Samriddhi Yojana Scheme

Sukanya Samriddhi Yojana, created as part of the Beti Bachao, Beti Padhao Yojana scheme, provides many benefits including:

• High Interest Rates Compared to other Government tax relief plans like PPF, the Sukanya Samriddhi Yojana scheme provides a good interest rate of 7.6 percent.
• Guaranteed Returns Because the Sukanya Samriddhi Yojana is a Government of India-issued plan, the funds are safe.
• Tax BenefitsThe Sukanya Samriddhi Yojana (SSY) scheme provides tax advantages up to Rs. 1.5 lakh per year.
• Adaptable Investments A minimum investment of Rs. 250 and a maximum investment of Rs. 1.5 lakh can be made per annum. This covers a wide range of people who have the flexibility to invest according to their financial situation.
• Benefits of CompoundingThe Sukanya Samriddhi Yojana scheme is a beneficial and lengthy investment plan since it offers yearly compounding. As a result, even small deposits can offer long-term profits.
• Easy Transfers The Sukanya Samriddhi Yojana account which is handled by the female child’s parents or guardians can be easily moved from one part of the country to another.

Disadvantages Of The Sukanya Samriddhi Yojana Scheme

Any investment plan has both pros and cons. Some of the disadvantages of the Sukanya Samriddhi Yojana scheme include:

• Set Maturity PeriodThe Sukanya Samriddhi Yojana scheme reaches its maturity at 21 years.
• Limit Of Two AccountsOnly two Sukanya Samriddhi Yojana accounts can be created. If a person has 3 daughters, that child will not be able to benefit from this scheme. But there is an exception when twins or triplets are born.
• No Early Withdrawal Except for the unfortunate demise of the female child, early withdrawal is not allowed.
• Varying Interest Rates The Sukanya Samriddhi Yojana scheme can adjust the interest rate charged on all small savings accounts every three months.

Points To Know About The Sukanya Samriddhi Yojana Scheme

These are some points to keep in mind about the Sukanya Samriddhi Yojana scheme:

• Account Maintenance and ChargesA discontinued account may be activated after paying a Rs. 50 fine for each year that payments were not made, in addition to the missed payments.
• Term Sukanya Samriddhi Yojana deposits must be paid for 15 years, from the time the account is opened. Early closure is allowed after 5 years in certain circumstances such as the demise of the female child or the parent/guardian.
• Account OwnershipParents of female children below the age of 10 handle their accounts. Once the children reach the age of 18, they can legally handle their Sukanya Samriddhi Yojana accounts.
• NomineesNominations are not included in the Sukanya Samriddhi Yojana scheme.

Conclusion

The Sukanya Samriddhi Yojana scheme is a tax-free limited savings plan for female children in India which came into effect on 22 January 2015. Parents or guardians of female children can open a Sukanya Samriddhi Yojana account in their daughter’s name at their nearest post office or local bank branch with a minimum deposit of Rs. 250. This Government of India scheme aims to help parents who want to save money for their female children’s education. In helping parents invest money, the Sukanya Samriddhi Yojana scheme helps pave the way for female children’s future education. For more articles like one on different Government of India schemes, visit Piramal Finance to learn more!