Sukanya Samriddhi Yojana (SSY)

In the guidance of Honorable Prime Minister Mr. Narendra Modi, Govt. of India has launched Sukanya Samriddhi Yojana for women empowerment. When there is a major issue of women protection in India, the female sex ratio is very low. In order to improve female sex ratio, girl child birth needs to be enhanced. Parents feel that there will be huge expenses for a girl such as marriage and education and other post marriage expenses if there will be any issue with in-laws. To cover up the financial needs for education and marriage of the girl child SSY has been launched.

Let’s briefly discuss Sukanya Samriddhi Yojana (SSY) scheme. It’s a small savings account scheme of Govt. of India in comparison to PPF account. This scheme has more benefits for girl child such as highest interest rate among all Govt. small saving scheme.

Features of Sukanya Samriddhi Account (SSA)

Eligibility

Girl Child who is resident of India aged 10 years or less. One Girl can have only 1 Sukanya Samriddhi Account. Parents can open only 2 Sukanya Samriddhi Account. 3 accounts can be opened only in case 2 girls are twins. Any parent or legal guardian can open SSA in name of girl child.

Maturity terms and conditions:

The SSA will mature after 21 years from the opening date or on marriage date, whichever will be earlier. But for getting matured amount for marriage, the girl’s age should be more than 18 years during marriage. It is not allowed to conduct account operation on post marriage. After completion of 14 years installment, the interest will be continuously deposited to Sukanya account until the closing of Account even after the maturity withdrawn date is over.

50% or less premature amount can be withdrawn for higher studies when the girl child attains 18 or more. The Sukanya Scheme can be terminated or premature if the parents are unable to deposit yearly installment or the girl child become dead.

Installment Amount and Calculation of maturity amount

The parents or guardians of girl child have to deposit between INR 1000/- to INR 150000/- p.a. for 14 years from opening of Account. But remember, in order to keep SSY A/c alive, you need to pay at least INR 1000 per year.

If you are not able to pay minimum amount INR 1000 for any financial year, then in order to continue SSY account, you have to pay penalty 50 along with the minimum amount in the starting of following financial year immediately.

If one is not able to deposit same amount every year, then they can continue their SSY account up to 14 years and then it will be freeze up to 21 years and only interest will be added by Govt. But your account will be continued, if you are able to pay only min. amount INR 1000/- per year.

Calculation of Premature amount

The depositors can withdraw the 50% of lowest balance available only for Higher Education purpose when the girl child becomes 18 or more.

If the Parents are unable to pay installment or the girl has been dead, then the account will be closed and they will get the premature amount according to their deposited amount and interest thereon.

Benefits of Sukanya Samriddhi Yojana (SSY)

Highest Interest Rates

The account holder can earn 9.2% for the F.Y. 2015-16 and it was 9.1% in F.Y. 2014-15. This SSY interest rate is considered as highest among all Public small investment Schemes controlled by Govt. of India. The interest rate for this Sukanya scheme will be 0.75% higher than Bond yield. Monthly interest amount is calculation is available and at the year ending, the interest will be added to Sukanya Account. People can deposit minimum 1000/- p.a. and maximum 1, 50, 000/- p.a. in one account.

Income Tax Rebate

You can get income tax exemption under section 80C of I.T. Act, 1961 for interest on Sukanya Account and maturity amount. Only one parent can claim rebate under 80C. If 2 accounts are opened for 2 daughters each parent can claim rebate in 1 account.

Support for girl

By launching SSY scheme Govt. has enhanced the growth of Female sex ratio and which will ultimately make stronger women protection from different angles such as majority, financial strength, handling future major expenses such as marriage and higher education.

The Sukanya Samriddhi Account can be opened with minimum amount of INR 1000/- and is transferrable over any location of India as per address proof providing. This SSY Accounts is easier to operate. Parents shouldn’t hesitate for expecting a girl child.

Some Important Points:

• Sukanya Samriddhi Yojana is not available for NRIs.
• You have to make deposits for 14 years only. You can deposit after that even if willing to do so.
• From 15^th to 21^st year only interest will accumulate in your SSA.
• Account will mature after 21 years if your daughter does not get married before that. For example if age of your daughter is 6 years when you started SSA then you will deposit in the account till she turns 20. After that you will not make any deposits. According to SSY the account will mature when your daughter turns 27. But if your daughter gets married in between means from age 20 to 27 you can mature the SSA to cover up the expenses of her marriage.
• If funds are not withdrawn even after maturity you will keep on getting interest in your account until you close the account yourself.
• One can invest any amount between Rs.1000 to Rs.150000 in all financial years. The amount may vary every year too. So if you are not in a position to invest a big amount every year even then you can keep investing small amounts every year.

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