As part of the government’s ‘Beti Bachao, Beti Padhao’ campaign, the Sukanya Samriddhi Yojana, or SSY, is a welfare program for young women of reproductive age. A girl kid under the age of ten might be financially protected if her parents or legal guardians sign up for this insurance plan. Sukanya Samriddhi Yojana allows a girl to create an account in her name at any commercial or public sector bank for the next twenty-one years. SSY investments have a 21-year life expectancy, counting backward from the date of account opening.
What is the Sukanya Samriddhi Yojana for?
The Government of India’s Sukanya Samriddhi Yojana is a savings program designed to benefit the country’s female population. A new government initiative aims to help parents save money for their daughters’ future education and marriage expenditures by launching the Sukanya Samriddhi Yojana.
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It is called the Sukanya Samriddhi Yojana (SSY), and it is a deposit system designed specifically for the female kid. The goal of this program is to provide girls with a stable financial future.
You can make regular contributions to your daughter’s college fund using this savings strategy. As the years go by, you can build up a sizable corpus by making regular deposits. You can use this corpus to help your daughter achieve her goals, such as completing her schooling or finding a husband.
It’s one of many initiatives adopted by the government as part of the Beti Bachao Beti Padhao Yojana, which Prime Minister Narendra Modi announced in 2015. Other initiatives included the “Dhanlakshmi Scheme” and the “Ladli Scheme.”
Visit one of the following locations to register for the Sukanya Samriddhi Yojana Scheme.
- Post office
Interest Loans Under the Sukanya Samriddhi Yojana
Your Sukanya Samriddhi Yojana account now has an interest rate of 7.6 percent per year. This rate will take effect on April 1st, 2020. This is a decrease from the previous rate of 8.4%.
If, on the other hand, you made your deposit between December 12th, 2019, and March 31st, 2020, you will receive an annual interest rate of 8.4 percent.
Interest is paid to you every year, but only at the end of each financial year. The interest rate is decided by the government and changes every quarter. If the girl becomes an NRI, no interest will be paid.
Sukanya Samriddhi Yojana Requirements
The Sukanya Samriddhi Yojana has been made available to everyone by the Indian government, and as a result, you can open an account at any post office in the country. Open a Sukanya Samriddhi Yojana account only if you meet the following requirements:
- Sukanya Samriddhi accounts can only be opened by the girl’s parents or legal guardians.
- In order to open an account, the girl kid must be under the age of ten. The account can be used through to the girl’s 21st birthday.
- Initiation investments can begin as little as $250 and run up to $1,50,000 every year, with further contributions of $100 per month.
- Sukanya Samridhhi accounts cannot be opened by the same girl kid.
- Each family is allowed only two Sukanya Samriddhi Yojana accounts, one for each member.
One of Sukanya Samriddhi Yojana’s advantages is its high interest rate.
The interest rate on the Sukanya Samriddhi Account is higher than the interest rate on other savings plans for girls. For each financial year, the government sets an interest rate for that calendar year, which is then compounded annually for your investments. The value of your Sukanya Samriddhi Yojana account will soar as a result of compounding when it reaches maturity.
Savings on Taxes of a Significant Nature
Section 80C of the Income Tax Act 1961 allows you to deduct your payments to the Sukanya Samriddhi Yojana for the benefit of your daughter. Tax deductions of up to Rs 1.5 lakh can be claimed on investments in the scheme. Additionally, tax savings can be obtained on both interest generated and the amount received upon maturity or withdrawal. The Department of Revenue (DOR) administers the Sukanya Samriddhi Yojana, which is one of the most popular EEE investment programmes in India.
Benefits of Maturity that Are Assured
Sukanya Samriddhi Yojana account balances, including interest, would be paid to the girl child at the time of maturity (or policyholder). Your daughter will be empowered and financially independent when she is old enough to make her own decisions. Another advantage of investing in the Sukanya Samriddhi Yojana is that your savings will continue to grow even beyond maturity until the account is eventually closed by the account holder.