Benefits of Sukanya Samriddhi Yojana
Interest rates for Sukanya Samridhi Yojana increased: In anticipation of the 2024 Lok Sabha elections, the Narendra Modi govt raises Sukanya Samridhi Yojana(SSY) interest by 20 basis points for the January–March quarter. A circular from the finance ministry stated that the interest rate on deposits made under the Sukanya Samriddhi scheme would increase from the current 8 percent to 8.2 percent. Every quarter, the government announces the interest rate on small savings plans, which are mostly run by post offices.
Current interest rates for small savings plans for the quarter ending in January–March 2024
PPF – 7.1%
SCSS – 8.2%
Sukanya Yojana – 8.2%
NSC – 7.7%
PO-Monthly Income Scheme – 7.4%
Kisan Vikas Patra – 7.5%
1-Year Deposit – 6.9%
2-Year Deposit – 7.0%
3-Year Deposit – 7.1%
5-Year Deposit – 7.5%
5-Year RD – 6.7%
What is Sukanya Samridhi Yojana
Sukanya Samriddhi Yojana is a small deposit scheme of the Government of India exclusively for a girl child The scheme was launched by Prime Minister Narendra Modi on 22 January 2015 as a part of the Beti Bachao, Beti Padhao campaign.
The scheme is meant to meet the education and marriage expenses of a girl child.
The scheme currently provides an interest rate of 8.0%[3] (For Apr-June 2023 quarter) and tax benefits. Now The Narendra Modi government has raised the interest rates on the Sukanya Samriddhi Yojana (SSY)scheme by 20 basis points for the January-March quarter, ahead of Lok Sabha polls 2024.
It offers one of the highest rates of interest among small-savings schemes backed by the Government of India. The rate of interest for Sukanya Samriddhi Yojana for the financial year Q4 FY 2024 is 8.2% which is compounded annually.
Under the scheme, a minimum of Rs 1000 and a maximum of Rs 1,50,000 can be deposited. Some of the benefits associated with opening the account under the yojana includes high interest rate, savings on income tax, lock in period, when account reaches the maturity age account balance including the interest rate will be paid to the policy holder and lastly the policy holder receives interest even when the scheme reaches maturity
It aims to build a fund of savings for the girl child with the interest accrued on maturity being exempt from income tax under Section 80C of the Income Tax Act.
SSY can be opened through Post Offices, public sector banks, and three private sector banks – HDFC Bank, ICICI Bank, and Axis Bank.
How to avail the benefits of Sukanya Samridhi Yojana
The account can be opened by the parent/guardian at anytime between the birth of a girl child and the time she turns 10 years old. Only one account is allowed per child. Parents can open a maximum of two accounts for each of their children (exception allowed for twins and triplets). The account can be transferred to anywhere in India.
The girl can operate her account after she reaches the age of 10. the age of 18, the account permits a 50% withdrawal for the purpose of higher education. The account reaches maturity after time period of 21 years from date of opening it. Deposits in the account can be made till the completion of 15 years, from the date of the opening of the account. The account will only earn the applicable rate of interest after this time
Documents are required for opening SSY account
• Birth certificate of the girl child
• Photo ID of applicant parent or legal guardian
• Address proof of applicant parent or legal guardian
• Other KYC proofs such as PAN, and Voter ID.
• SSY account opening form.
• A medical certificate has to be submitted in case multiple children are born under one order of birth.
• Any other documents that are requested by the bank or post office.
ore details about Sukanya Samriddhi Yojana.
Benefits of Sukanya Samriddhi Yojana Scheme
The primary goal of the Sukanya Samriddhi Yojana (SSY) programme, which was introduced as part of the Beti Bachao Beti Padhao campaign, is to secure a girl child’s future.
- Guaranteed Returns : As Sukanya Samridhi Yojana is a government-backed scheme, there is an assurance of returns upon maturity.
- Affordable payment : The minimum account balance required to maintain an SSY account is Rs. 1000 per fiscal year. You have the flexibility to make deposits up to Rs. 1.5 lakh per fiscal year, making it accessible for people from all sections of society.
- Educational Expenses Covered : You can withdraw 50% from the balance present in the account as of the previous financial year’s end to cover the educational expenses of your girl child. This can be availed by providing proof of admission.
- Attractive Interest Rate : Sukanya Samriddhi Yojana accounts offer high-interest rates compared to other government-backed schemes. Currently, the rate stands at 8% p.a.
- Convenient Transfer : You can easily transfer the Sukanya Samriddhi Yojana account from a bank to a post office or a post office to a bank anywhere in India
- Tax benefits : To encourage investments in SSY, the scheme offers the following tax benefits.
- Tax-Exempt Interest : The interest that accrues on the Sukanya Samriddhi Yojana account, compounded annually, is exempt from tax under Section 10 of the Income Tax Act.
The primary objectives of Beti Bachao Beti Padhao are:
• To eliminate gender discrimination against children and put an end to the practice of sex determination.
• To ensure the protection and survival of girls.
• To promote increased participation of girls in education and various other areas.