Sukanya Samriddhi Yojana (SSY Yojana), a small deposit scheme of the Government of India under the Beti Bachao-Beti Padhao campaign, was launched by Prime Minister Narendra Modi in 2015. Sukanya Samriddhi Yojana (SSY) was introduced as a strategic investment scheme designed to secure the future of the girl child in the country.
Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana allows parents to open an account for their daughters from birth to 10 years of age, the account matures after 21 years. After maturity, the entire amount can be withdrawn to support the daughter’s education or marriage expenses.
A key feature of this scheme is the provision of tax benefit up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961. This makes Sukanya Samriddhi Yojana an attractive option for parents who are concerned about their daughter’s future.
Sukanya Samriddhi Yojana Benefits
Sukanya Samriddhi Yojana offers many tax benefits and has the highest interest rate among all small savings schemes, at 8.2 percent per annum.
The interest accrued over the tenure of the scheme is exempted from tax under Section 80C.
The SSY account can be seamlessly transferred between post offices and banks across India.
After the beneficiary attains the age of 18, he/she is eligible for premature withdrawal of up to 50 percent of the total balance accumulated in the account.
Sukanya Samriddhi Yojana Eligibility Criteria
As long as the child is less than ten years of age on the date of opening the account, the parents or any legal guardian can open an SSY account in the name of the girl child.
Each account holder can open a maximum of one account under the Sukanya Samriddhi Yojana
Only two girls from a family can open an account under this scheme.
How to apply for Sukanya Samriddhi Yojana?
Eligible people can apply for an SSY account at a post office or bank of their choice. The applicant can complete the application form after providing all the required details and submitting the necessary documents.
Further, the applicant can make the initial deposit in the amount of Rs 250 to Rs 1.5 lakh through cash, cheque or demand draft. The bank or post office will then process the application and payment.
Once processed, the SSY account will be operational and the applicant will receive a passbook to mark the opening of the account.