Sukanya Samriddhi Yojana (SSY) is a government-backed child savings plan designed to secure the financial future of a girl child. It was launched in 2015 under a government scheme called “Beti Bachao, Beti Padhao for a girl child’s welfare. This scheme is considered to be an ideal plan for the parents of a girl child as it aims to offer financial security to them, hence helping to meet their girl child’s education expenses, marriage expenses or any other future needs. Though this plan is considered to be a child savings plan, however as it does not include any insurance component, parents can still consider it to combine with the Best Child Insurance Plan to safeguard both financial growth & protection.
This scheme mainly focuses on the financial security of a girl child by providing her parents with funds to meet education & marriage-related expenditures. The main objectives of this scheme are as follows:
- To ensure the protection & survival of girls.
- To stop the gender biases, i.e. discrimination.
- To abolish the practice of gender determination
- To ensure the girl’s participation in all areas, i.e. skill development, higher education, or any other expenses.
- To ensure the financial security of a girl child.
Eligibility Criteria
Provided are the eligibility parameters to open a Sukanya Samriddhi Account:
- This scheme can be activated in the name of a girl child, either by her parents or guardian, at any time before 10 years of age.
- This scheme entitles the opening of only one account in the girl child’s name for a maximum of up to two girl children. An exception to this is the first pregnancy with birth to three baby girls or the birth of twin girls at the time of the second pregnancy.
- The beneficiary of this account should be an Indian citizen & resident at the time of account opening.
Features of the Sukanya Samriddhi Scheme
Provided are the features of Sukanya Samriddhi Scheme:
- Age Limit
The account can be opened at any time before the girl’s child reaches the age of 10 by her parents or guardian.
- Minimum & Maximum Deposit
The minimum amount of deposit is INR 250, which can range up to a maximum deposit of INR 1,50,000.
- Tenure of Deposit
The scheme has a tenure of around 21 years from the date of account opening, which ensures growth & long-term savings.
- Maximum Period for Deposit
The maximum period for deposit is 15 years from the date of account opening.
- Interest Calculation
The calculation of interest is done monthly & compounded annually.
- Withdrawal for Higher Education & Marriage
This scheme allows the accountholders to withdraw 50% of the account balance to fulfil the higher education & marriage post 18 years of age, providing financial security & support.
Benefits of the Sukanya Samriddhi Scheme
The Sukanya Samriddhi Scheme is considered to be the most efficient government-supported Child Saving Plan, which is initiated to offer financial security to a girl child. This scheme offers tax benefits, competitive interest rates, guaranteed payouts, etc. Let us now go through its benefits in detail:
- Tax Rebate
Get a deduction of tax u/s 80C of the Income Tax Act, 1961, ensuring financial benefits to the account holder.
- Higher Education & Marriage
This scheme allows the accountholder to withdraw 50% of the funds to cover the expenses related to education & the marriage of a girl child once she gets 18 years old.
- Irregular Payment/Revival
It allows the revival of the account by paying a penalty amount of INR 50, along with a minimum amount annually.
- Premature Closure
The account can be prematurely closed in case of any life-threatening disease or death of the accountholder after obtaining authorisation from the Central Government.
- Long tenure
The scheme has a tenure of around 21 years from the date of account opening, which ensures growth & long-term savings.
- Compound Interest
The calculation of interest is done monthly & compounded annually, & thus, it is credited to their accounts at the end of the financial year.
- Multiple Accounts
This scheme entitles two girl children or sometimes three as an exception for twin girls, which makes it convenient for the parents to have girl children.
Documents Required
Provided is the list of documents required to opt for Sukanya Samriddhi Yojana:
- An Account Opening Form
- Parent’s or Guardian’s photograph
- Birth Certificate of the Girl Child
- KYC documents
- Any Other Documents
Steps to Open a Sukanya Samridhhi Yojana Account
Provided are two modes to open a Sukanya Samridhi Yojana Account offline:
- Visit the bank or post office to get the account opened.
- Fill out the application form & attach the documents as required.
- Make payments that can range between INR 250 & INR 1,50,000, either in cash, cheque, or draft.
- The bank or post office will process the application.
- The account will be activated, & a passbook will be provided.
Provided are two modes to open a Sukanya Samridhi Yojana Account offline:
- To open the account online, download the India Post Payments Bank app.
- Set up the st&ing instructions against the amount to be deposited.
Steps to Make Sukanya Samridhhi Yojana Account Online Payment
Provided are two modes to make Sukanya Samridhi Yojana Account online payment:
- Transfer the funds to the India Post Payments Bank from your respective bank account.
- Using the IPPB app, click the DOP products or Services tab.
- Next, select the Sukanya Samridhhi Yojana account.
- Provide your Sukanya Samridhhi Yojana account number along with your customer ID.
- Select the desired amount to be paid & the tenure of the instalment.
- A notification will be received by IPPB once the payment cycle has been set.
Conclusion
The Sukanya Samriddhi Yojana was launched to ensure the financial security of a girl child. This scheme offers competitive interest rates along with tax benefits, allowing one to meet education, marriage, or any other future obligations. This scheme is meant for long-term savings, helping parents of a girl child to secure the financial future of their daughters.
