Sukanya Samriddhi Yojana:- A government programme called Sukanya Samriddhi Yojana (SSY) encourages parents to save money aside for their daughter’s future education and marriage costs. As a part of the government’s “Beti Bachao Beti Padhao” initiative, it was introduced on January 22, 2015. The programme is run by the Ministry of Finance and is accessible at all post offices and certain banks nationwide.
The programme allows parents or legal guardians to create a savings account for a girl child under the age of 10. A minimum deposit of Rs. 250 and a yearly maximum of Rs. 1.5 lakh are required to start the account. The government will occasionally announce the interest rate at which the account will earn money. SSY’s current annual interest rate is 7.6%. (as of July 2021).
When the girl kid reaches the age of 21, the account will become mature. Nevertheless, when the girl child reaches the age of 18, partial withdrawals of up to 50% of the account balance can be made for her higher education or wedding costs.
The parent or legal guardian must present the following paperwork to create an SSY account:
Girl child’s birth certificate
Identification and residence verification for the parent or legal guardian.
The bank or post office provides a form for opening an account.
The programme offers the account holder a number of tax advantages. According to Section 80C of the Income Tax Act, donations made to the account are tax deductible. Both the maturity sum and the interest accrued on the account are tax-free.
The system has a number of benefits, including:
- Long-term savings: The programme offers parents a way to save money down for their daughter’s future schooling and wedding costs.
- High interest rate: Compared to other savings plans like fixed deposits and public provident funds, the interest rate given by this programme is greater.
- Tax advantages: The plan offers tax advantages on the contributions made, the interest received, and the maturity sum.
- Flexibility: The plan allows for partial withdrawals and a range of deposit amounts to cover further education and wedding costs.
- Security: Because the programme is supported by the government, it offers a safe investment alternative.
Unfortunately, the plan has certain shortcomings, such as:
The programme is exclusively offered to young girls under the age of 10. Older children’s parents are not eligible for the program’s benefits.
The scheme’s interest rate is set and may not be able to keep up with inflation.
Partial withdrawals: Only higher education or wedding costs are eligible for partial withdrawals from the account, and they are only permitted up to 50% of the overall total.
Penalty for non-deposit: If the account is deemed dormant and no minimum deposit of Rs. 250 is made in any financial year, a penalty will be assessed.
Overall, the Sukanya Samriddhi Yojana is a fantastic effort on the part of the government to support the welfare and education of young girls. For parents who want to invest wisely in the future of their female child, this is a great choice. The programme offers a high interest rate, tax advantages, and flexibility in deposit and partial withdrawal quantities. Before investing, parents must take into account the program’s disadvantages.
Benifet Sukanya Samriddhi Yojana
The Sukanya Samriddhi Yojana (SSY) programme has various advantages, some of which are given below:
- High Interest Rate: As compared to other government-backed savings plans, SSY provides a greater interest rate. As of July 2021, the SSY’s current annual interest rate was 7.6%, compounded once a year. The government periodically reviews and adjusts the interest rate.
- Tax Benefits: SSY offers tax advantages under Section 80C of the Income Tax Act, which enables parents or legal guardians to deduct contributions made to their female child’s SSY account up to a maximum of Rs. 1.5 lakh annually. Taxes are not applied to either the interest or the maturity amount.
- Long-Term Investment: The SSY programme is intended to help parents save money over the long term for the future costs of their female child’s education and marriage. When the girl kid reaches the age of 21, the account becomes mature. She can pay for her higher schooling or wedding expenditures with the maturity sum.
- Once the girl child reaches the age of 18, SSY offers the option for partial withdrawals from the account. She may take up to 50% of the account’s balance to pay for her future wedding or more schooling.
- Deposit flexibility: SSY permits parents or legal guardians to deposit any amount into the account every year between Rs. 250 and Rs. 1.5 lakh. The deposits may be made all at once or over the course of the year in several payments.
- SSY is a government-backed savings programme, making it a secure and low-risk investing choice for parents. As the programme is unaffected by market volatility, it is regarded as a safe investment choice.
- Social Security: The programme is a component of the government’s “Beti Bachao Beti Padhao” initiative, which seeks to advance the welfare and education of Indian girls. Parents may support the social cause and ensure the future of their girl child by investing in the programme.
In conclusion, the Sukanya Samriddhi Yojana is a fantastic investment choice for parents who want to safeguard the future of their female child. The programme offers high interest rates, tax advantages, deposit flexibility, a partial withdrawal option, and is a risk-free and secure investment choice.
