For every parent securing the financial future of their children comes as a topmost priority. And, if you are a parent of a girl child then there is no better way to secure your daughter's future other than opening a Sukanya Samriddhi Yojana account in her name.
The Sukanya Samriddhi Yojana account is a small deposit account, which was launched by the PrimeMinister of India Narendra Modi in the year 2015 under the Beti Bachao Beti Badao Campaign. The scheme aims to encourage parents to invest in the education of the girl child and save for their marriage. The main objective of the scheme is to secure the financial future of the girl child and ensure that all their future needs are taken care of even in the absence of the parent.
Along with the benefit of investment returns, the plan also offers the benefit of tax exemption. The current interest rate applicable to the SSY account is 7.6%. Let’s read further to know about the benefits offered by the HDFC Sukanya Samriddhi Yojana account and why you should consider investing in it.
As compared to other investment options available in the market, the Sukanya Samriddhi Yojana account offers a high- interest rate of 7.6%, which accrues monthly and is compounded on yearly basis. The interest rate of the scheme is regulated by the Central Government quarterly. The interest applicable to the SSY account is computed using the interest rate, maturity date, and the amount of deposition made towards the scheme.
This is another major benefit offered by the HDFC Sukanya Samirddhi Yojana. Along with the benefit of high investment return, the investors can gain tax benefit under the EEE format (exempt, exempt, exempt). Under this, the contribution made towards the scheme up to the maximum limit of 1.5 lakh is tax exempted U/S 80C of the IT Act, the interest earned on the contributed amount and maturity proceeds are also tax exempted.
The Sukanya Samriddhi Yojana HDFC account has a maturity period of 21 years from the date of opening or marriage of the girl child whichever is earlier. The account gets terminated after the marriage of the girl child. However, the beneficiary can make one premature withdrawal once the girl reaches the age of 18 years. The contributor can use the prematurely withdrawn fund for the higher education of the girl child. This amount is limited to 50% of the balance at the end of the year. An individual can continue contributing towards the scheme up to 14 years from the date of opening the account.
The Sukanya Samriddhi Yojana HDFC account offers flexibility to the investors. An individual can start investing in the account with a minimum amount of Rs.250 and can deposit up to a maximum of Rs.1.5 lakh in a financial year. Once the girl child reached the age of 10 years, then she can operate the account of SSY.
At the time of maturity of the scheme, the accumulated fund and the accrued interest is paid to the girl child. Under SSY, the parents cannot withdraw the money and use it for their requirements. The plan ensures to provide the right financial security to the girl child. As the main objective of the scheme is to encourage parents to contribute to the secured future of the girl child. Sukanya Samriddhi Yojana account ensures that the gild has financial independence and is not treated like a burden. A high rate of interest and tax-saving advantage makes SSY one of the lucrative investment options available in the market.
Now that we know the benefits offered by the Sukanya Samriddhi Yojana HDFC Account, let’s take a look at what are the eligibility criteria of the policy.
Here are some of the important documents that should be kept handy while applying for the scheme.
By investing in the Sukanya Samriddhi Yojana HDFC Account one can ensure a bright future for their girl child. The scheme helps to meet the future financial goals of the girl child like higher education and marriage and also help to help them to be financially independent in the long-term.