The Sukanya Samriddhi Yojana is one of the small savings schemes available for a 3-year term deposit.

Also Read Kalinga Express

The Sukanya Samriddhi Yojana (SSY) is a savings scheme launched by the Government of India under the "Beti Bachao, Beti Padhao" campaign. The scheme aims to promote the financial security of the girl child and encourage parents to save for their daughter's future. Sukanya Samriddhi Yojana offers a 3-year term deposit with attractive interest rates and tax benefits.

1. Eligibility Criteria:

• The Sukanya Samriddhi Yojana scheme applies to parents or legal guardians of a girl child who is under ten years of age.
• Each depositor can open only one account for a single girl child, and a maximum of two accounts for different girls in the same family.
•  Only one Sukanya Samriddhi Yojana account is allowed per girl child. 
• A family is limited to opening a maximum of two accounts under the Sukanya Samriddhi Yojana scheme.

2. Account Opening:

• The account can be opened at designated post offices and authorized banks.
• The account can be opened with a minimum deposit of Rs. 250, and a maximum of Rs. 1,50,000 can be deposited in a financial year.

·                   Birth certificate of the girl child.

·                  Photo ID of the parent or legal guardian applying.

·                   Address proof of the parent or legal guardian.

·               Other KYC proofs such as PAN card, Voter ID, etc.

·                 Once the account is opened, you will be issued a passbook containing the details         of the SSY account.

3. Deposit Period:

       

• The scheme has a maturity period of 21 years from the date of opening or until the girl child gets married after the age of 18.
• A minimum deposit of Rs. 250 must be made annually for the account to remain active.

·                    Savings Deposit: 4 percent.

·                   Year Post Office Time Deposits: 6.9 percent.

·               Year Post Office Time Deposits: 7.0 percent.

·                   Year Post Office Time Deposite 7.1 Percent.

·                   Year Post Office Time Deposits: 7.5 percent.

·              Year Recurring Deposits: 6.7 percent (6.5 percent earlier)

·                 National Saving Certificates (NSC): 7.7 percent.

·                 Kisan Vikas Patra: 7.5 percent (will mature in 115 months)

·                Public Provident Fund: 7.1 percent.

·               Sukanya Samriddhi Account 8.2 Percent.

·               Senior Citizens Savings Scheme: 8.2 percent.

·              Monthly Income Account: 7.4 percent.

4. Interest Rate:

• The government has also hiked the three-year term deposit scheme by 10 basis points for the January-March quarter while retaining the rates for all other small savings schemes. The 3-year term deposit would now fetch 7.1 percent from the current 7 percent.
• The government determines the interest rate which is subject to change. The rate is generally higher than other small savings schemes.
• Interest is compounded annually and credited to the account.

5. Tax Benefits:

• Contributions made to Sukanya Samriddhi Yojana are eligible for deductions under Section 80C of the Income Tax Act.
• The interest generated through the Sukanya Samriddhi Account (SSA) is tax-free.

6. Withdrawal:

• Partial withdrawals are allowed after the girl child attains the age of 18 for her higher education or marriage.
• The withdrawal amount is limited to 50% of the balance at the end of the preceding financial year.
• According to the regulations set by the Department of Posts, withdrawals can be accomplished in a single transaction or installments, with a maximum of one withdrawal per year with up to a limit of 5 years.

7. Documentation:

• To open an account, parents or guardians must provide the girl child's birth certificate and KYC documents.

·         Scan and have additional documents ready for upload.

·         Complete the online form and upload the necessary documents.

8. Account Operation:

• The account is operated by the parent or legal guardian until the girl child turns 10, after which she can operate the account.
• The committee had recommended that the interest rates of different schemes should be 25-100 bps higher than the yields of the government bonds of similar maturity.

Small savings schemes have three categories — savings deposits, social security schemes, and monthly income plans. The interest rates offered by the Government on most of the small savings schemes, including Post Office Fixed Deposit, are already at par with term deposits offered by banks.

The small savings schemes are great instruments to save individual income tax. Under Section 80C of the Income Tax Act, individuals can claim deductions of up to Rs 1.5 lakh per year from their taxable income by investing in PPF, SCSS, NSC, SSY, and the 5-Year Post Office Time Deposit Scheme.

Sukanya Samriddhi Yojana is a commendable initiative by the Indian government to empower and secure the financial future of girl children. It promotes savings and contributes to the larger goal of ensuring the well-being and education of the girl child in the country. Parents and guardians looking for a reliable and tax-efficient investment avenue for their daughters should consider the benefits Sukanya Samriddhi Yojana offers.