The government has recently announced a new interest rate for the Sukanya Samriddhi Yojana. Previously, the scheme offered an annual return of 8%, but now this return has been increased by 20 basis points to 8.20%. The government created this scheme specifically for girls. Let’s take a detailed look at this scheme.
What is Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana (SSY) is an initiative started by the government in 2015 as a part of the Beti Bachao Beti Padhao campaign to encourage girls to save for their future. It is a fixed-income investment that allows you to deposit money regularly and earn interest on it.
Features of Sukanya Samriddhi Yojana
Interest Rate: The government fixes the interest rate for the Sukanya Samriddhi Yojana every three months. From the beginning of the new year 2024, the new rate for this scheme has been set at 8.20%. This interest is compounded annually.
Deposit Amount: In this scheme, you can invest a minimum of Rs. 250 annually, and you can invest up to a maximum of Rs. 1.5 lakh. You can make payments as many times as you wish. However, if you fail to make the minimum payment, your account will be closed and you will need to pay Rs. 100 to reactivate it.
Lock-In Period: The Sukanya Samriddhi Yojana has a lock-in period of 21 years. For example, if a girl is 3 years old at the start of the scheme, the maturity date will be when she turns 24.
Account Transfer: If your residential address changes, you can transfer your Sukanya Samriddhi account to any post office or bank branch. You just need to provide proof of the new address. If you transfer the account for any other reason, you will have to pay a fee of Rs. 100.
Number of Accounts: Only one account can be opened in the name of a girl, but you can open a maximum of two accounts in a single household. If three girls are born at the same time or twin girls are born after the first girl, you can open more than two accounts.
| Key Features of Sukanya Samriddhi Yojana (SSY) | |
|---|---|
| Interest Rate | 8.20% annually |
| Minimum Investment | Rs. 250 annually |
| Maximum Investment | Rs. 1.5 lakh annually |
| Maturity Period | When the girl is 21 years old at the time of marriage or after 18 years |
| Eligibility to age limit | The girl’s age should be 10 years or less |
Eligibility Criteria
If you are opening an account in a girl’s name
- Any girl can open a Sukanya Samriddhi account
- The girl must be at least 10 years old, but the government has provided an additional grace period of one year.
- Girls only need to submit age proof documents (Age Proof)
If you are opening an account on behalf of a girl
You can only open this account for your daughter if you are the girl’s parents or legal guardian. Each parent or legal guardian can open a maximum of two accounts.
Advantages of Sukanya Samriddhi Yojana
- This is a government scheme that guarantees returns. The current rate offers an annual return of 8.20%, which is higher than other government schemes.
- You can claim a tax deduction of up to Rs. 1.5 lakh in a financial year under Section 80C of the Income Tax Act (if you pay taxes).
- If you have a daughter, this investment option can be a sure bet, as you may earn a fixed return on your investment. The maturity amount can be used for a girl’s education or marriage.
- You can open a Sukanya Samriddhi account with a minimum of Rs. 250. Additionally, to keep your account active, you must deposit at least Rs. 250 annually. This is an affordable option for everyone.
How to open a Sukanya Samriddhi Account
- Maturity Withdrawal: After 21 years, you can withdraw your money without paying any taxes. For this, you will need to submit a withdrawal form, ID proof, residence proof, and other relevant documents. The documents need to be submitted.
- Partial Withdrawals (up to 50%): Money can be withdrawn for a girl’s education or marriage. If you want to apply for education, the girl should be 18 years old and should have completed her 10th standard.
- Early Closure: Some conditions apply to withdrawals if the girl is getting married, the money can be withdrawn one month before or three months after the wedding, and 50% of the withdrawal amount is tax-free.
- Early Closure Interests: If you close a Sukanya Samriddhi account for any reason other than the ones mentioned, you will get the same return as you would get on a post office account.
Conclusion
If you are looking for a good investment option for your daughter, the Sukanya Samriddhi Yojana is the right and excellent choice for you. Since it is a government scheme, the return is guaranteed and it is very attractive. The Sukanya Samriddhi Yojana can certainly help you plan for your daughter’s education and marriage with low risk for an extended period.
The Sukanya Samriddhi Yojana is a government scheme aimed at promoting savings for the future of girls. With the recent increase in interest rates, this scheme has become even more attractive as an investment option. The account can be opened with a minimum investment of Rs. 250 per year, providing a secure and guaranteed return. The flexibility of the scheme, along with the tax benefits it offers, makes it an ideal choice for parents looking to plan for their daughters’ education and marriage expenses. Overall, the Sukanya Samriddhi Yojana stands out as a long-term, low-risk investment option for securing the future of girls.
