What is Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana is a small deposit scheme of the Government of India specifically for the girl child and has been launched as a part of the Beti Bachao Beti Padhao campaign. This scheme is to meet the expenses of a girl’s education and marriage.
More Detials
The Sukanya Samriddhi Yojana (SSY) is a special savings plan designed for the financial well-being of girl children. Launched on January 22, 2015, as part of the Beti Bachao Beti Padhao initiative, it aims to assist families in covering education and marriage expenses for their daughters.
This scheme, authorized by the Government of India on December 14, 2014, encourages parents to create a dedicated fund for the future needs of their female child. Interested individuals can apply for SSY through Post Offices or designated branches of Public Sector Banks, as well as select Private Sector Banks like HDFC Bank, Axis Bank, and ICICI Bank.
Parents or legal guardians can open an SSY account for a girl child under 10 years of age. Each family is limited to opening two SSY accounts, with only one account allowed per girl child. The minimum annual investment required is ₹250, while the maximum is ₹1,50,000. The maturity period for the scheme is 21 years.
As of the reporting period from April 1, 2023, to June 30, 2023, the interest rate for SSY stands at 8.0%. Notably, the deposited principal amount, interest earned over the tenure, and maturity benefits are all exempt from taxation. Additionally, the principal amount is eligible for deduction under section 80C, up to ₹1,50,000.
Since its inception, approximately 2.73 crore accounts have been opened under the Sukanya Samriddhi Yojana, accumulating deposits totaling nearly ₹1.19 Lakh Crore.
Sukanya Samriddhi Yojana News:
Here’s a New Year gift from the government – they have decided to sweeten the deal for those investing in Sukanya Samriddhi Yojana. Starting the fourth quarter of the financial year 2023-24, they have increased the interest rate for this scheme to 8.2 percent from the previous 8 percent. This is a good incentive for investors, especially considering that interest rates for other schemes remain unchanged.
This is the second time this financial year that the government has given this particular scheme a little extra love. In the first quarter, they raised the interest rate from 7.6 percent to 8 percent. Therefore, for the current financial year, they have effectively increased the interest rates for Sukanya Samriddhi Yojana by 0.6 per cent, which will provide a slight financial boost to those investing in the future of their daughters.
And it is not just the Sukanya Samriddhi Yojana that is getting some attention. The government has also changed the interest rates for small savings schemes, making this an all-round adjustment. But, interestingly, this rate hike does not apply to other plans – it is a special bonus for Sukanya Samriddhi.
Apart from Sukanya Samriddhi Yojana, there are some other facilities also. Interest rates on three-year fixed deposits have been increased from seven percent to 7.1 percent. On the other hand, Public Provident Fund (PPF) and savings deposit rates remain stable at 7.1 per cent and 4 per cent respectively.
Let’s not forget other financial instruments. Kisan Vikas Patra is available at 7.5 percent interest rate with a maturity period of 115 months. National Savings Certificate (NSC) is still offering 7.7 percent interest rate for the period from January 1 to March 31, 2024. And if you are in the Monthly Income Scheme (MIS), it is keeping it steady at 7.4 per cent, no surprise there.
Therefore, the government’s decision to give Sukanya Samriddhi Yojana a little extra boost in interest rates shows that they are serious about encouraging financial planning and empowering our girls for a brighter future.
Sukanya Samriddhi Account Scheme
• Minimum deposit amount ₹ 250/- Maximum deposit amount ₹ 1.5 lakh in a financial year.
• The account can be opened in the name of a girl child till she attains the age of 10 years.
• Only one account can be opened in the name of a girl child.
• Account can be opened in post offices and authorized banks.
• Withdrawals will be allowed to meet education expenses for the purpose of higher education of the account holder.
• Premature closure of the account can be done in case of marriage of the girl after attaining the age of 18 years.
• Account can be transferred from one post office/bank to another anywhere in India.
• The account will mature on completion of 21 years from the date of account opening.
• Deposit amount is eligible for deduction under Section 80-C of the IT Act.
• Interest earned in the account is exempt from income tax under Section-10 of the I.T.Act.