Sukanya Samriddhi Yojana & Eligibility, Process

Sukanya Samriddhi Yojana


Sukanya Samriddhi Yojana

Introduction 

A government-sponsored savings programme called Sukanya Samriddhi Yojana (SSY) aims to give girls financial stability for their future education and marriage. The programme was introduced in 2015 as a part of the Beti Bachao, Beti Padhao initiative by the Indian government. 

The programme is regarded as one of the most well-liked investment choices in India for parents trying to safeguard their girls' futures. This page seeks to offer a thorough overview of the Sukanya Samriddhi Yojana programme, including all of its advantages, requirements for participation, and application procedures.

Sukanya Samriddhi Yojana: What is it?

A savings account can be opened in the name of a girl child under the Sukanya Samriddhi Yojana by parents or legal guardians. The programme intends to give the female kid a long-term financial advantage for her further education and marriage costs. The programme is a component of the government's initiative, "Beti Bachao, Beti Padhao," which aims to advance gender equality and educate girls.

The programme comes with a high interest rate, tax advantages, and support from the Indian government. The government reviews and adjusts the scheme's interest rate on a quarterly basis, making it a particularly profitable investment choice.

Sukanya Samriddhi Yojana's advantages include

High Interest Rates

Among India's modest savings plans, the Sukanya Samriddhi Yojana offers one of the highest interest rates. The scheme's current annual interest rate is 7.6%, although it is subject to change every three months. The maturity duration of the plan is 21 years from the day the account was opened, and the interest is compounded yearly.

Tax Benefits

Section 80C of the Income Tax Act of 1961 gives tax benefits for the Sukanya Samriddhi Yojana. The parents' or legal guardians' taxable income may be reduced by up to Rs. 1.5 lakh annually for contributions made to the plan. Both the interest and the maturity amount are free of taxes.

Simple to Open

Any authorised bank or post office can open a Sukanya Samriddhi Yojana account. A minimum deposit of Rs. 250 and a maximum deposit of Rs. 1.5 lakh can be used to open the account, respectively.

Flexibility of Deposits

The plan accepts flexibility of deposits. According to their convenience, parents may deposit any amount between Rs. 250 and Rs. 1.5 lakh annually. Both cash and checks may be used to make the deposits.

Use of Funds

The Sukanya Samriddhi Yojana account's funds may be utilised towards the female child's education and marriage. When the girl kid marries after becoming 18 or when they reach the age of 21, the account may be closed.

Criteria for Sukanya Samriddhi Yojana Eligibility

  • Age of the female kid: A female kid who is younger than 10 years old at the time of account opening is eligible for the programme.
  • Citizenship: Only Indian citizens are eligible for the programme.
  • Number of Accounts: A girl kid may only have one account created in her name.
  • Parent or Legal Guardian: The girl's parent or legal guardian may open the account.
  • Minimum and Maximum Investment: The scheme's minimum and maximum investments, respectively, are 250 and 1.5 lakh rupees annually.
  • Tenure: The scheme's 21-year lifespan begins on the day the account is opened. When the girl's kid reaches the age of 21, the account becomes an adult.

Formula for Sukanya Samriddhi Yojana applications

Sukanya Samriddhi Yojana applications are easily completed at any post office or authorised bank branch. The steps to establish an account under the programme are as follows:

  • Visit the authorised bank branch or post office closest to you.
  • Obtain the Sukanya Samriddhi Yojana application form.
  • Fully the nomination form including all the required information.
  • Send the programme form and the other required information.
  • Put down the bare minimum needed to open the account.
  • Required Documents for the Sukanya Samriddhi Yojana
  • Aadhaar card identification document for the parent or legal guardian
  • Girl child's birth certificate
  • Aadhaar card, passport, voter ID card, or utility bills are examples of address evidence for the parent or legal guardian.
  • Passport-sized pictures of the female kid and her parents or legal guardian.
  • Legal guardian or parent's PAN card is optional.
  • A statement confirming the girl kid is the only beneficiary of the account.
  • Any additional paperwork that the bank or post office needs.
The child's parent or authorised guardian may submit no less than Rs. 250 and a maximum of Rs. 1.5 lakh annually once the account has been set up. Both cash and checks may be used to make the deposit. The account may be used up until the girl kid becomes 21; at that point, it becomes mature.

Sukanya Samriddhi Yojana withdrawals

After the girl child reaches the age of 18, withdrawals from the Sukanya Samriddhi Yojana account are only permitted. The girl child's further education or marriage may be the motivation for the retreat. Up to 50% of the account balance at the end of the financial year prior to the year of withdrawal may be withdrawn. For instance, if the withdrawal is made in 2023, the account balance as of March 31, 2022, will be taken into consideration for determining the withdrawal amount.

The account may be cancelled and the full amount withdraws if the girl kid marries before becoming 18 years old. The account cannot be prematurely closed until it has been open for at least five years.

Sukanya Samriddhi Yojana's shortcomings

  1. Limited Scope: The programme is only available to parents or other legal guardians of girls under the age of ten. This indicates that just a small set of people may take advantage of the plan and that it is not open to the general public.
  2. Long Lock-In term: The Sukanya Samriddhi Yojana has a 21-year maturity term starting on the day the account is opened. The money in the account cannot be removed before the maturity time, so to speak. After the female child turns 18, partial withdrawals from the account are permitted, but they are only permitted up to 50% of the sum at the end of the previous fiscal year.
  3. No Premature Withdrawals: The Sukanya Samriddhi Yojana does not permit early withdrawals, in contrast to other modest savings plans. As a result, unless the female kid marries after becoming 18 years old, the money in the account cannot be taken before the maturity time.
  4. Limited Access: Only authorised banks and post offices are able to open the Sukanya Samriddhi Yojana. This restricts the program's accessibility because not all banks or post offices may provide it.
  5. Limited Contribution: The plan only permits a maximum contribution of Rs. 1.5 lakh annually. For some parents who want to contribute more to their daughter's future savings, this might not be enough.

Conclusion

A fantastic investment choice for parents who wish to safeguard their daughter's future is the Sukanya Samriddhi Yojana. The programme is a safe and dependable investment option since it offers a high interest rate, tax advantages, and government backing. The scheme's qualifying requirements are straightforward, and withdrawals can be made for the female child's higher education and wedding costs. In order to guarantee your child has a secure future, it is critical to start saving early. As a result, parents should think about including the Sukanya Samriddhi Yojana in their long-term investing strategy for their girl child.

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