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Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana: Scheme for improved future of the Girl Child

Sukanya Samriddhi Yojana, commonly known as SSY, is a scheme for girls launched to better their futures. This scheme was launched under the campaign Beti Bachao, Beti Padao, which was announced in 2015 by the Prime Minister of India.

It is a scheme that has been sponsored by the government for the betterment of the life of girls in India. The program was launched to ensure a good future for the female child and allows parents to construct a fund for their girl kid's future schooling and marriage expenditures.

This child insurance plan helps the parents or the guardians in giving financial security to the girl child 10 or below. Under the Sukanya Yojana, a girl's account can be opened in any bank, whether public or commercial, for a period of 21 years. The total term for investment is 21 years, which starts from the date the account is opened.

It is a deposit system designed specifically for girls. This program was created to ensure that the future of the girls is secure financially.

Objectives of Sukanya Samridhi Yojna

The primary goals of the Beti Bachao, Beti Padhao Yojana, are as follows:

  • To avoid gendered elimination of girl child.
  • To secure the girl child's safety and survival.
  • Ensure the girl child's education and involvement.
  • It gives social and economic support to a girl child.

Features of Sukanya Samriddhi Yojna

Sukanya Samriddhi Yojana was created to assist parents of girls in establishing a reserve for their child to help them achieve goals such as education and marriage.

There are numerous elements that you should look for before registering an account. They are as follows:

Account Administration

The guardian or parents can use the account until the girl reaches the age of ten. When the daughter reaches the age of 18, she must run the account.

Deposits Made into the Account

In a fiscal year, the minimum and maximum deposits that can be made in an account are INR 500 and INR 1.5 lakh, respectively. Deposits are accepted in multiples of 100.

The Scheme's Duration

Deposits for the scheme should be made over 15 years. The system, however, matures after 21 years.

Account Transfer

Anywhere in India, an SSY account can be transferred from post offices to banks and vice versa. There will be no fees associated with the account transfer.

However, documentation of residency change is required. If no proof is provided, an INR 100 fee will be charged.

Depositing Mode

Deposits to the account can be made via internet transfer, demand draught, check, or cash.

Number of Accounts

Only one account may be made for one daughter; several accounts for the same individual are invalid. This program is available to one family for a maximum of two daughters. Multiple accounts are permitted in the event of twins.

Eligibility Criteria of Sukanya Samriddhi Yojana

The Child's Eligibility (Account Holder)

The Sukanya Samriddhi Yojana savings scheme is only available to female children. This child's maximum age should be ten years. However, a one-year grace period is provided.

Parents Should Know That:

The parent or a guardian only can open an account for the girl. A single parent or legal guardian may open up to two accounts for their female offspring.

If someone has twins or triplets, the parent or legal guardian has the option of opening up to three accounts. The account holder must be an Indian citizen residing in India at the time of account opening and must remain so until the account matures or is closed.

Interest Rate

The Sukanya Samriddhi Yojana Interest Rate is 7.6% p.a. This interest rate will be in effect beginning the 1st of April 2020. It has decreased from the previous rate of 8.4%.

If you deposit between the 12th of December 2019 and the 31st of March 2020, the rate that will be applicable will be 8.4%.

Some of the points to remember are-

  • The payment of interest is done each year
  • The payment is done at the end of each year
  • The government fixes the rate, and the same is changed every quarter
  • If the girl becomes a Non-Resident Indian, no interest will be paid
Period Interest Rate Per Annum
From April 2020 till Now 7.6%
Between 01.01.2019 and 31.03.2019 8.5%
Between 01.10.2018 and 31.12.2018 8.5%
Between 01.07.2018 and 30.09.2018 8.1%
Between 01.04.2018 and 30.06.2018 8.1%
Between 01.01.2018 and 31.03.2018 8.1%
Between 01.07.2017 and 31.12.2017 8.3%
Between 01.10.2016 and 31.12.2016 8.5%
Between 01.07.2016 and 30.09.2016 8.6%
Between 01.04.2016 and 30.06.2016 8.6%
Between 01.04.2015 and 31.03.2016 9.2%
Between 03.12.2014 and 31.03.2015 9.1%

Calculator for Sukanya Samriddhi Yojana

The Sukanya Samriddhi Yojana online calculator provides an estimate of an individual's investment plan under the Sukanya Samriddhi Yojana (SSY) initiative.

The calculator will analyse the data and provide you with the ultimate result in terms of the maturity amount based on details such as the annual investment and the rate of interest you specified.

What Are the Consequences of Paying Less or More to the Sukanya Samriddhi Yojana Scheme?

Less amount: If the minimum payment of INR 500 is not made in a year, the account is in default. But it will be active upon paying a penalty of INR 50.

Exceeding amount: Any deposit over INR 1,50,000 earns no interest. The depositor has the option to withdraw the extra money whenever they wish to.

Sukanya Samriddhi Yojana Withdrawal Procedures

The maturity duration of the Sukanya Samriddhi Yojana Account is 21 years from the date of opening. However, if certain circumstances are met, you may withdraw your funds. Here are some of the rules affecting when and how much you can withdraw.

1. The girl child has the right to withdraw the entire sum produced after the account matures, along with the total interest up to the date. This withdrawal is not subject to any taxation.

2. Withdrawal will be permitted once you have completed the withdrawal form and submitted all required papers, such as identity verification or address verification.

Withdrawal for Educational Purposes

You may withdraw for academic reasons if your child has reached 18 years of age or has completed her 10th standard.

For this, you must provide the necessary entrance documents- Admission offers from colleges/universities that have been confirmed and a copy of the charge slip. You can only withdraw up to 50% of what was available the previous year.

Rules for Early Withdrawal before Maturity from the SSY Account

Given below are the rules that enable premature closure of the account:

  • Premature withdrawal is allowed on the completion of 18 years of age and marriage. To get the benefit, however, an application needs to be submitted at least one month in advance of the marriage and within 3 months of the marriage. Documents proving the girl's age need to be presented.
  • In case of the girl becomes an NRI or Non-citizen, the account stands cancelled, and the guardian should inform this change up to one month from such change.
  • In the event that the girl child dies, the guardian can take the money from the account. But in such a case, the certificate of death must be supplied.
  • Suppose the term of the account has become greater than 5 years, and the post office or bank has reason to believe that the account's continuation is causing difficulties for the girl, then in such a case. In that case, the guardians or the girl herself may request that the account be closed prematurely.

Benefits of Sukanya Samriddhi Yojana

Significant Interest

The Account under the scheme has a greater interest rate than interest rates under different savings plans, which offer financial security for girls.

The government finalises the interest rate each year, and it is calculated on a compound basis. The value of the investment increases due to compounding.

Maturity Benefits are Guaranteed

Upon maturity, that balance in the Account, including earned interest, will be received by the girl or policyholder. Because of this, any girl can become independent in terms of money when they are ready to make their self-decisions.

Also, you will earn this compound interest on the funds till the account is closed by the account holder.

Significant Tax Benefits

Contributions to the Sukanya Samriddhi Yojana for the future of your daughter are tax deductible as per the Income Tax Act 1961. This deduction is available under Section 80C.

As a result, you can claim tax benefits up to INR 1,50,000 invested in the scheme. Furthermore, tax breaks are possible on both the interest earned and the amount received upon maturity or withdrawal.

How to Apply for Sukanya Samriddhi Yojana

The account under this program can be opened through any post office or bank. The following is the procedure for opening the same:

1. Go to the post office or your local bank.

2. Complete the application form. The Application form is available by the name FORM SSA-1.

3. The same form can also be downloaded and filled out.

4. Once the form is filled out completely, the following documents need to be attached.

a) One copy of address proof, whether the utility bill, driving license, etc.

b) Copy of ID proof of the parent or guardian such as a Voter ID Card, Aadhar Card, or PAN Card.

c) Birth certificate of the girl for whom the account is to be opened.

5. Make your initial deposit. It can be a minimum of INR 250 and a maximum of INR 1,50,000.

6. The application will be processed only after the required documents have been submitted.

7. Once the verification is complete, the Sukanya Samriddhi Account will be activated, and a passbook will be issued.

How to Submit Sukanya Samriddhi Yojana Documents

You must submit various documents to authenticate your identity before your Sukanya Samriddhi Account may be opened. As of now, you cannot submit these documents online; instead, you must visit your local bank or post office.

The following documents are required:

For the Female Child

  •  Birth certificate
  •  SSA-1 form

For the Parent

  • Identification Documents: PAN Card, AADHAR Card.
  • Address proof: Driver's license, phone bill, and utility bill.

Although only these documents are required, the relevant bank may also request evidence of additional documents.

Sukanya Samriddhi Yojana Account Passbook Specifications

After all of the processes have been completed and your account has been opened, you will be given a passbook. The passbook is a compact booklet supplied by a bank or post office that carries a record of all transactions made via your account. It includes the following information.

  • Your account deposits
  • Account withdrawals
  • Interest earned

Aside from that, it comprises your personal information, such as your name, account number, and account opening date.

Conclusion

The main aim of introducing the Sukanya Samriddhi Yojana was to empower girls and allow their parents to save money for their education and marriage.

Income tax benefits were coupled to offer additional leverage and make it more appealing, and high-interest rates were permitted to tempt an increasing number of depositors. This scheme makes the future of the girl child secure. So it is advisable for parents to adopt this scheme.

Frequently Asked Questions

Can NRIs profit from the Sukanya Samriddhi Scheme?

No, no provision currently states that Non-Resident Indians can also benefit from the Sukanya Samriddhi Scheme and register an account under this scheme. The girl child should be an Indian citizen. If the girl child later becomes an NRI, the SSY account will be cancelled.

What is the age relaxation granted to girl children under the Sukanya Samriddhi Scheme?

Because the Sukanya Samriddhi scheme is new, the government does not want a few people to miss out on it because of age restrictions. As a result, any girl child who turns 10 years old exactly one year before the scheme's inception is entitled to participate.

As a result, every girl child born between the 2nd of December, 2003, and the 1st of December, 2004, is eligible for the Sukanya Samriddhi Scheme.

What will happen if the girl child who is the beneficiary dies unexpectedly?

In the event of a girl child's death, the Sukanya Samriddhi Account is ended and closed, and the proceeds are handed to the girl child's guardian or father.

Is it possible to convert my regular bank deposit account to a Sukanya Samriddhi Account?

No. The feature of converting a deposit account to a Sukanya Samriddhi Account is currently unavailable. Sukanya Samriddhi is a particular scheme targeted at improving the financial situation of females in the country, and as such, account conversion is not permitted.

Can I make an early withdrawal from my Sukanya Samriddhi account?

No. Only a limited withdrawal of up to 50% is permitted, and only when the girl child has reached the age of 18. This money may only be taken for the girl child's further education or wedding expenses.

Can I open several Sukanya Samriddhi accounts for my daughter?

There can only be one Sukanya Samriddhi Account per girl child. So, if you have two daughters, you may open two different accounts in each of their names. However, if you have one daughter, you can only open one account.

Can both parents claim the Sukanya Samriddhi deposit amount as a tax deduction?

No, only one of the parents or guardians is eligible for a tax rebate for the sum deposited through Sukanya Samriddhi.

Is the Sukanya Samriddhi Scheme transferable from one location to another?

Yes. This system is portable from the post office to a bank or from one authorised bank to another. This is because there may be instances when a girl kid needs to relocate for school or other reasons.

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