What is Sukanya Samriddhi Yojana
This is a Micro investment scheme that was started by the government of India. In this, the parents or their parents of girls under 10 years of age invest in it regularly for a few years and at a fixed rate of 8.1 percent, the compound interest is added every year in their account. Money can be withdrawn after the completion of 14 years of the girl’s account and can be used for her better future.
Parents can withdraw money on certain rules and conditions in the girl’s 18th year,
This scheme has been specially designed for the higher education and marriage of the daughters of Indian parents so that they will no longer be regarded as a financial burden on the family. The best part of this plan is that small savings can be deposited in it and its account can be opened in near bank or post office.
Under this scheme, parents or legal guardians can open an account in the name of the daughter. This account is opened only by the name of the daughter, the government has authorized the post office and commercial bank to open the Sukanya Samriddhi account.
Facts & Benefits About Sukanya Samriddhi Yojana
Well, this plan is very simple and easy. But to invest in the Sukanya Samrudhi Yojana, it is important to understand the main points related to it, which are given below –
The maximum age for getting the account open 10 years – The opening age of account opening in Sukanya Samrudhi Yojna will be considered valid from the birth of the girl till the completion of 10 years.
In this, two girls’ accounts will be opened – parents can open separate accounts of their two daughters. If daughters are twins then they can also open the third account with birth certificates.
Minimum and maximum amount in the account – In this SSY scheme, the account can be opened with Rs. 250 and can invest up to Rs. 250 / – and up to 1.5 lakh rupees in one year. The minimum limit was Rs 1000, but now it has been reduced to 250 rupees annually.
The account will be open for 14 years – 10 years in Sukanya scheme, you will have to open a girl’s account. After that, his account will remain open for 14 years and you will have to deposit the amount in it. If the girl is 18 years old, you can withdraw 50% by following certain rules and conditions. If the girl gets married in the middle of 18 to 21 years then the account will be closed on that day and you will get all the money with interest.
The interest rate will be calculated according to 8.1% – after some changes, the Sukanya prosperity plan has been reduced from 8.1% to 8.2% in Compound Interest Rate in 2018. Yes, it has happened a little bit, but still, there is a good investment in paying more interest than any PPF Account.
Where the account will open – You can go to any of your nearest Bank or Post Offices to open an account. There you will have to fill the Sukanya Yojana Form and all the demanded Documents should be deposited with it. After that, you will have to deposit Fees of Rs. 250 / -, after which your account will be opened. If parents wish then after some time the account can be transferred to any other place in India.
MUST DOCUMENTS – Nothing more than this. You just have to submit some documents, such as parents’ ID, daughter’s birth certificate, Address Proof and daughter’s photo of parent or guardian.
Rules & Eligibility of SSY
There are several types of rules in this plan which are necessary to keep in mind. Based on those rules and qualifications, the parent or guardian of the girl can invest by opening her account. Some of the rules and qualifications related to Sukanya Yojana are as follows:
This scheme is for Indian citizens only.
This scheme is not available to those who are Indians but live outside ie that is NRI.
In this case, if the girl’s age is above 10 years, she will not be able to take advantage of this scheme.
In this, the account will be opened only in the name of the daughter and if the child is older, the girl herself can automate that account.
This account has Lock-in Period where you will have to maintain the account for 14 years and can not withdraw money before that. Prior to that, the money will be withdrawn only when the girl becomes 18 years old or such a life becomes a deadly situation and the question of the life of the girl can be found in the bank by declaring the proof and withdrawing the money.
You can transfer your account from one bank or from another post office to another post office. But if you transfer an account from any post office to a bank, then you have to pay a fee of Rs 100 and you can do it only once in a year.
If for some reason the daughter dies, all the money in the account will be paid to the parent or guardian with interest.
To open the account, 250 rupees have to be deposited and can invest between 250 to 1.5 in a minimum of one year.
Documents Required Checklist
- Daughter’s birth certificate provided by a hospital or government official.
- Certificate of residency of the daughter’s parent or legal guardians, such as passport, driver’s license, electricity or telephone bill, voter’s identity card, ration card or any other certificate provided by the Government of India in which residence is mentioned. A PAN card or high school certificate is also valid for opening the account.
- Daughter’s photo of parents and so on.
Benefits of Sukanya Samriddhi Yojana
Opening a Sukanya Samriddhi Account can be beneficial for all parents; some of the benefits are as follows: –
- Easy to open – It is very easy to open an account.
- Less Deposit Amount – Account opens only with Fees of Rs 250 and investment can be done.
- High Interest – Interest is charged at a rate of 8.1% higher than any PPF Account.
- Flexible Deposit Mode – This account can be transferred to any other place in India.
- Account Operation – The daughter herself can decide who will operate her account.
- Tax Exemption – This scheme has been tax-free under Section 80C of the Income Tax Act.
- Payment only for Girl Child – According to the provisions of this plan, the maturity amount will be paid to the daughter only, under which the account has been opened. This ensures that money will be used by the daughter.
- Pre-mature withdrawal – When the daughter is 18 years old, she can withdraw 50% for her education or marriage if she needs it. Also, the Sukanya Samrudhi Yojana has been started for the welfare of the daughter, so that the daughter can be educated and no financial problem comes during her marriage. Due to the attractive interest rate and tax benefits, opening an account for the parents to their daughter is also a good option from the investment point of view.
The SSY account ensures the bright future of the daughters of India, apart from many benefits, the interest rate in this scheme is very attractive, so that the daughter’s parents are interested in opening the account. However, interest rates have changed in the last year, which indicates that interest rates are not fixed or fixed and the government can change this from time to time. Initially, the interest rate was set at 9.1% but was later revised with 9.2% at the end of March 2015. The interest rate was increased to 8.6% from FY 2016-17 and later it was up to 8.4%. While talking about 2018 today, the interest rate has been kept at 8.1%, in which calculation happens every 3 months.
Tax benefits in SSY
The biggest benefit of the Sukanya Samrudhi Account Scheme is that the tax rebate has been provided in it. The amount deposited in Sukanya Samrudhi Yojana is exempted under Section 80C of the Income Tax Act. Similarly, there is no tax on the amount found on interest and maturity date.