Sukanya Samriddhi Yojana (SSY) or commonly referred to as Sukanya Yojana, is a government-backed savings scheme designed to help parents secure the financial future of their girl child.
The scheme offers attractive interest rates, tax benefits, and flexible investment options, making it an ideal choice for long-term investment. Let's explore the features of Sukanya Samriddhi Yojana and why it is a good investment choice for your daughter's future.
Features of Sukanya Samriddhi Yojana
- High interest rates: Attractive returns for long-term savings. The scheme offers an interest rate of 8% per annum (Q2 FY 2023–24).
- Flexible investment: Minimum deposit ₹250, maximum ₹1.5 lakhs per year
- Tax benefits: Deductions under Section 80C, tax-free interest and maturity amount
- Long-term horizon: Account matures after 21 years; deposits allowed for 15 years
- Partial withdrawal: Up to 50% after the girl turns 18 or completes the 10th standard
- Account transferability: Easy transfer between banks or post offices
- Multiple deposit channels: Cash, cheque, demand draft, or electronic transfer
- Account closure: After the girl turns 18 and marries, or after 21 years
- SSY eligibility: Girl children below ten years, residents of India
Rules for withdrawal from SSY account
Here are the withdrawal options available under the SSY scheme:
- Partial withdrawal: 50% withdrawal allowed for higher education or marriage after the girl turns 18 or completes 10th standard.
- Full withdrawal on maturity: After 21 years or upon marriage after the girl turns 18, you can close the account by submitting an application and necessary documents.
- Account closure for marriage: If the girl gets married after turning 18, you can close the account by submitting an application and a declaration of her age.
- Premature closure: Allowed in case of account holder's demise or severe medical conditions.
Sukanya Samriddhi Yojana tax benefits
The tax benefits provided under SSY can be availed under various sections of the Income Tax Act:
- Tax deduction under Section 80C: Claim up to ₹1.5 lakhs per annum for SSY deposits
- Tax-free interest earnings: Interest earned on deposits is tax-exempt
- Tax-free maturity amount: No tax on the maturity amount received after 21 years
Sukanya Samriddhi Yojana eligibility
- Residency: The girl child must be an Indian resident; NRIs and PIOs ineligible
- Age: Open account for girl child below ten years; deposits for 15 years
- Number of Accounts: Maximum two accounts per family; exception for twins or triplets
- Account Opener: The parent or legal guardian; must provide the required documents
Also Read: [Key points to remember while preparing for your child's education]
Documents required to open an SSY account
- Birth Certificate of the girl child
- Identity Proof of the parent or legal guardian
- Aadhaar Card
- PAN Card
- Voter ID Card
- Passport
- Driving License
- Address Proof of the parent or legal guardian
- Passport
- Aadhaar Card
- Voter ID Card
- Utility Bills (Electricity, Water, or Telephone)
- Ration Card
- Driving License
- Recent passport-sized photographs
- SSY Account Opening Form
Steps to open a Sukanya Samriddhi account
Opening a Sukanya Samriddhi Account is a simple and hassle-free process. You can visit your nearest post office or any authorized bank, such as Axis Bank, to open an SSY account. Axis Bank offers a seamless account opening experience, making it easier for parents to invest in their daughter's future. Follow these steps to open an SSY account:
Step 1: Collect the SSY account opening form from the bank.
Step 2: Fill in the necessary details, such as the child's name, date of birth, and address.
Step 3: Attach the required documents, including the child's birth certificate, identity proof, and address proof of the parent or legal guardian.
Step 4: Submit the completed form and the documents to the bank branch.
Step 5: Deposit the initial investment amount (minimum ₹250) to activate the account.
Once the account is opened, you can deposit a minimum of ₹250 and a maximum of ₹1.5 lakhs per year for 15 years, with the account maturing after 21 years.
Summing up
Sukanya Samriddhi Yojana is an excellent investment choice for securing your daughter's financial future. With attractive interest rates, tax benefits, and flexible investment options, SSY provides a secure and stable means of saving for your child's education and marriage. You can also use our SSY calculator online.
So, start investing in Sukanya Samriddhi Yojana today and pave the way for your child's success.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision
