The Government is doing what it can for securing the future of the girl child in the country and thus, has come forth with a saving scheme specially designed and tailor made for the girls. Sukanya Samriddhi yojana, an initiative by the Prime Minister Narendra Modi was launched in January 2015.
The initiative has turned successful with 76 lakh accounts opened so far and a whopping 3,000 crores invested in the scheme. The scheme has been a hot topic of discussion among the middle class families looking for ways to secure and safeguard their daughters’ future and making them financially strong.
However, before investing in the scheme, one must carefully read and understand the sukanya yojana details. We have listed out the main points here to make it easy for you to make the investment.
- Opening the account – Any girl aged 10 years and below is eligible for the account and a maximum 2 girl children of one family can open the SSY account, her parents or legal guardians can do so on her behalf. Now, the rule has been tweaked to accommodate adopted daughters too.
- The girl has to have Indian resident and if during the course of tenure, she shifts to another country, the interest will stop immediately.
- Deposits to the account can be made for 15 years from the date of opening the account.
- The rate of interest at present is 9.2% and subject to change like other saving schemes.
- The account can be opened with a minimum balance of rs 1000 and the investment is capped at 1.5 lakhs per annum.
- Deposits can be made via cash, cheque or online transfer.
- The scheme is available in every post office in the country and a few selected banks.
- In case of non-maintenance of minimum balance of rs 1000 throughout the year, the account holder is likely asked to pay a penalty depending upon the default. If the default is due to the death of the account operator or the guardian, the account will continue to get interest fixed by the government.
- The invested amount is tax deductible under Sec 80C and operates under the EEE tax regime.
- The account is in operation till the girl turns 21 years and interest will stop coming in even if the account is not closed. And in case of marriage of the girl before 21 years of age, the account will close immediately.
- The account allows withdrawal from the account for educational or marriage expenses. One can draw 50% of the savings as a lump sum or as 5 smaller instalments. In case of marriage expenses, age proof has to be submitted to make sure the girl is not under age during the wedding.
Sukanya Sariddhi Yojana is designed to benefit the girl children and is beneficial for people with middle or lower income since the scheme has low risk factor and gives decent returns on investment.
Looking for other methods of saving schemes? Try ELSS mutual funds today.