Sukanya Samridhi Yojana (SSY) Scheme. सुकन्या समृद्धि खाता योजना. Interest rates and tax Benefits 2024.

Sukanya Samridhi Yojana was launched by Prime Minister Mr. Narender Modi under the campaign ‘Beti Bachao, Beti Padhao’. This is a saving scheme backed by government. The main purpose of this scheme is to motivate parents to save money for their daughter and give them a secure future. This is scheme is very popular due to its interest rates and tax benefits. This scheme was launched on 22 January, 2015.

Who are eligible for Sukanya Samridhi Yojana?

Sukanya Samridhi Yojana is for every parents and guardian of female child. This scheme is applicable up to 2 girl child or 3 girl child if 3^rd child is twins. This scheme is applicable on every girl below the age of 10 years.

What are the minimum and maximum Deposit amounts in Sukanya Samridhi Yojana?

In this scheme minimum deposit is Rs. 250; it means anyone can start this Sukanya account with Rs. 250 only. Every year minimum amount should be deposited in Sukanya account otherwise penalty will be levied.

Maximum deposit limit is Rs. 1.5 lakh. Maximum time to deposit amount is 15 years.

Where to open Sukanya account?

Sukanya account can be opened in any designated bank or in post office. This facility is available both in Banks and Post office.

Here is a list of top banks operating Sukanya account.

1.    ICICI Bank

2.    HDFC Bank

3.    Canera Bank

4.    Indian Bank

5.    IDBI Bank

6.    PNB Bank

7.    Axis Bank

8.    SBI Bank

9.    UCO Bank

10.  Central Bank of India

What is the Maturity Period of Sukanya Account?

The maturity period of this scheme is 21 years from the date of opening the account or until the girl child gets married, whichever is earlier. Partial withdrawals are allowed once the girl child reaches the age of 18 years for education or marriage purposes.

What is the Interest rate of Sukanya account? Are there any Tax benefits applicable?

This scheme offers competitive interest rates, which are decided by the government on a quarterly basis. The interest is compounded annually. The rates of this scheme are higher than most other small savings schemes and PPF also.

Interest rates of Sukanya Samridhi Yojana since 2014-15

Financial Year                              Rate of Interest

2014-15                                               9.1%

2015-16                                               9.2%

2016-17                                               8.6% (Q1, Q2) 8.5% (Q3, Q4)

2017-18                                               8.5 %( Q1), 8.4 (Q2), 8.3 (Q3), 8.1 (Q4)

2018-19                                               8.1% (Q1, Q2), 8.5% (Q3, Q4)

2019-20                                               8.5% (Q1), 8.4% (Q2, Q3, Q4)

2020-21                                               7.6%

2021-22                                               7.6%

2022-23                                               7.6%

2023-24                                               8.0% (Q1, Q2, Q3), 8.2% (Q4)

 

Yes, Contributions made to Sukanya Samriddhi Yojana are eligible for tax deductions. Under Section 80C of the Income Tax Act deduction upto 1.5 Lakh can be availed. The interest earned and the maturity amount are completely tax-free.

Is Sukanya account is transferable?

Yes, Sukanya account is transferable. In case of a change in the place of residence of the girl child or her parents/guardians, the account can be transferred to any other post office or bank where the scheme is available. New address proof is required to change address.

What is Procedure to Open a Sukanya Samridhi Account?

You can open a SSA account by following these steps.

Visit Designated Banks or Post Offices:

Parents can visit any branch of authorized banks or post offices to open SSA account.

Fill Application Form:

After visiting branch parents must fill out the Sukanya Samridhi account application form with all necessary details such as name of daughter, date of birth, parents details, bank account details etc.

Submit necessary Documents:

 The parent needs to provide the necessary documents, including the birth certificate of the girl child, identity proof, address proof, and passport-sized photographs.

Deposit Initial Amount:

A minimum initial deposit, as specified by the bank or post office, needs to be made to activate the account.

Receive Passbook:

Once the account is opened, a passbook is provided, which serves as the record of all transactions and the current balance.

Advantages of Sukanya Samridhi Yojana

Financial Security for Daughter:

 The primary objective of Sukanya Samriddhi Yojana is to ensure financial security for the daughter by creating a substantial corpus for her education and marriage.

Attractive Interest Rates:

The scheme offers competitive interest rates that are generally higher than other traditional savings accounts and fixed deposits.

Tax Savings:

Contributions made to the scheme are eligible for tax deductions under Section 80C, providing an additional incentive for parents to invest in their daughter's future.

Long-Term Savings:

Sukanya Samriddhi Yojana encourages disciplined and long-term savings, as the maturity period extends to 21 years.

Partial Withdrawals for Education and Marriage:

The scheme allows partial withdrawals once the girl child reaches the age of 18 for education or marriage purposes, providing flexibility to meet specific financial needs.

Transferability:

The account can be transferred to any other branch post office or bank in case of a change in the place of residence, ensuring accessibility for account holders.

 

Challenges of Sukanya Samridhi Yojana

Sukanya Samriddhi Yojana offers numerous benefits, but there are some challenges that should be considered

Interest Rate Changes:

The interest rates are subject to change, and investors need to stay informed about the latest rates to make informed decisions.

Long Lock-in Period:

The maturity period of 21 years may be seen as a drawback by some investors who prefer more liquid investment options.

Impact on Government Benefits:

In some cases, the accumulated corpus may affect the girl child's eligibility for certain government scholarships or benefits. It's crucial to understand the potential implications.

Conclusion:

Sukanya Samriddhi Yojana is a valuable savings instrument for parents and guardians seeking a dedicated financial plan for their daughters. Its focuses on empowering the girl child through financial security. The scheme's combination of attractive interest rates, tax benefits, and flexibility for partial withdrawals makes it a compelling choice for those looking to secure the future of the next generation. However, individuals considering this scheme should stay updated on any changes in interest rates and carefully evaluate their long-term financial goals before making investment decisions. In the broader context, Sukanya Samriddhi Yojana contributes to fostering a culture of financial responsibility and gender equality in India.