Sukanya Samriddhi Yojana: Facts you may not know

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Every parent wants a secure future of his or her children. their children. For parents of a girl child, Sukanya Samriddhi Yojana (SSY) is one of the best secure investment options.

The government launched this small savings scheme in January 2015 to encourage parents to build a fund for the future expense of their girl child.

Here are a few important features:

Account opening

This account can be opened by the guardian in the name of a girl child below the age of 10 years.

Only one account can be opened in the name of a girl child and generally a maximum of two girl children in one family.

Along with documents of the guardian, the birth certificate of the girl child, in whose name the account is to be opened, is also necessary to open a SSY account.

The account can be opened in post offices or any bank and can be transferred anywhere in the country.

Deposits

A minimum deposit of Rs 250 should be made yearly and at the time of the opening of the account. A maximum of Rs 1.5 lakh can be invested in this scheme every year.

There is no limit on a number of deposits made in a month or a financial year.

The deposits may be made for 15 years from the date of opening of the account.

Between the 15th and 21st year, one need not invest any amount. You will get interest on the earlier accumulated investment.

Tenure

The tenure of SSY is 21 years, or until the daughter is married after 18 years of age.

Tax-savings

The Sukanya Samriddhi Yojana provides tax breaks under section 80C of the Income Tax Act and the returns are tax-free.

Default

If the minimum amount of Rs 250 is not deposited, the account will be go in the default mode. It can be regularised any time on payment of a penalty of Rs 50 for each year of default along with the minimum annual deposit.

Interest rates

The current interest rate in this scheme is 7.6%, compounded annually. The interest rate might be revised every quarter.

The interest is calculated for the calendar month on the lowest balance in the account between the close of the 5th day and the end of the month.

Partial withdrawal

An individual might request partial withdrawal of up to 50% balance for marriage or higher education of the girl child. If the purpose is higher education, the account holder must be 18 and passed the 10th level board exam.