Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana is launched on 22nd January 2015 by Mr. Narendra Modi, Prime Minister of India. This yojana is a prosperity scheme for the girl child in India under the program “Beti Bachao Beti padhao”. For girl children in India, the SSY account guarantees a bright future for them.
The main advantage of the Sukanya Samriddhi Yojana for girl child is that this scheme takes care of the education of the girl child and when she grown adult, the scheme also takes care of her marriage expenses. This scheme is very popular among the common people. Parents and Guardians of girl child likes this scheme because, it would offer independence and financial security to the girl child.
The Sukanya Samriddhi Yojana comes under the small savings scheme. To join this scheme, the age of the girl child is 10 years or less than 10 years. The minimum deposit is Rs. 1,000 and the maximum deposit limit is Rs. 1, 50,000. The rate of interest on this scheme is 8.1%.
Sukanya Samriddhi Yojana Interest Rate 2019
The Sukanya Samriddhi Yojana interest rate for July to September 2019 (Q2, FY 2019-20) is 8.4%. The interest rate on the Sukanya Samriddhi Yojana is fixed by the government and reviewed every quarter of the financial year.
Rules of Sukanya Samriddhi Yojana
Important Points Related to Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana Age Limit
The parents or legal guardian of the girl child can open the Sukanya Samriddhi Yojana Account anytime, under this scheme, during the birth time of the child, till the girl child will reach the age of ten year. A girl who reaches the age of ten years, before one year after the announcement of this scheme, can also open this account in her name.
Documents Required for Sukanya Samriddhi YojanaThe following documents are required for opening the Sukanya Samriddhi Yojana Account.
You can open Sukanya Samriddhi Account in twenty-eight authorized banks by Reserve Bank of India and any post office in India. During the time of opening the account, in the post office or the bank, it is not essential for the girl child to be present there.
List of Authorised Banks for Sukanya Samriddhi Account
Here is the list of authorised banks (public and private) where parents can contact to open Sukanya Samriddhi Bank Account –
Rules for Premature Closure of Sukanya Samriddhi Account (SSA)
The Sukanya Samriddhi Account can be prematurely closed in following two conditions.
Withdrawal Rules for Sukanya Samriddhi Account (SSA)
Before the age of eighteen years of girl child, there is no any withdrawal but up to 50% of the amount can be withdrawal in the following two conditions:
Advantages of Sukanya Samriddhi Account
The biggest benefit of Sukanya Samriddhi Account is that it has EEE tax exemption. The account deposits would be tax free. The amount of maturity and proceeds would be getting tax exemption under section 80 C. This is one of the main reasons that Sukanya Samriddhi Yojana is also compared with public provident fund but the tax exemption limit is only Rs. 1.5 lakhs. The interest earned on this account can also be exempted from the tax.
Disadvantages of Sukanya Samriddhi Account
- There is no facility of online transfer in post office - The lack of online transfer facility is one of the biggest drawbacks of this scheme. These days, every work is done via internet. This will also increase the load of work on the post offices.
- 21 years high lock in period - The lock-in duration of twenty-one years is not suited to all people. The matured amount can only be withdrawal for the higher education or the marriage of the girl child.
- Premature withdrawal is not permitted - Since premature withdrawal is not allowed, many people are not interested in this scheme.
- The rate of interest is not fixed - The interest rate is not fixed. It changes every year. Sometimes it is more, and sometimes it is less.
Sukanya Samriddhi Yojana Calculator
A Sukanya Samriddhi Yojana calculator can help you to determine the returns you receive as per the invested amount and tenure.
Formula Used in Sukanya Samriddhi Yojana Calculator
The formula used in Sukanya Samriddhi Yojana Calculator is –
A = P (1 + r/n) ^ nt
A represents Compound interest, P Principal Amount, r Rate of interest, n Number of times interest compounds in a year, and t Number of years
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