Sukanya Samriddhi Yojana – the saviour of girl child in India
Sukanya Samriddhi Account (also called as a girl child prosperity account) is a Government of India backed savings scheme targeted at the parents of girl children. This scheme is a part of Indian Prime Minister Narendra Modi’s dream campaign Beti Bachao Beti Padhao (save girl child educate girl child). The key purpose of this scheme is to facilitate a girl child with adequate education and carefree marriage expenses. The scheme was launched by PM Narendra Modi on 22nd January 2015 at Panipat, Haryana.
Opening an account:
The account can be opened with an initial deposit of Rs.1,000, later any amount can be deposited with multiple of Rs.100. The minimum deposit for the financial year is Rs.1,000 and the maximum limit Rs.1,50,000. The account can be opened by the parents or guardian of a girl child till she reaches the age of 10. The deposit need to be made for 15 years from the date of the opening of the account. Example: If the account is created in the name of a girl child at the age of X, then the deposit should be till X+14. The maturity will be after 21 years. Interest will be earned in the account from 15 to 21 years (for the period of 6 years) without any deposit.
Note: Only one account can be created for one child I,e. a girl child cannot have multiple accounts under the same name.
Mode of Deposit
The amount can be deposited either by cash or cheque or demand draft in the post office or any nationalised bank. The amount also can be transferred online through e-transfer (e.g. NEFT).
Document required to open an account:
Opening an account under SSY is quite easy. You need to submit only these documents:
- Birth certificate of a child
- Address proof of parents or guardian
- Identity proof of parents or guardian
Government of India fixes the interest rates on a quarterly basis based on the G-sec yield. The account holder under SSY enjoys 75 basis points over the G-sec rates. For example: Interest rate on 1 April 2014 was 9.1% and for the period October 2016 to December 2016 it was 8.5%.
Tax and other benefits of the scheme:
- The deposits under SSY earns high rate of interest with sovereign guarantee. There is no uncertainty on the amount invested.
- The deposit made for any financial year qualifies for 80C deductions and the maturity benefits are tax free.
- The account can be transferred anywhere in India
- No limit on number of deposits in a year. That means, a depositor can deposit the money in multiple of Rs.100 any number of time with the maximum limit of Rs.1,50,000 per year.
- The maturity amount is transferred to the girl child directly. This gives the sense of independence for the child.