5 Benefits of Sukanya Samriddhi Yojana for Girl Child by the Govt of India

Benefits of Sukanya Samriddhi Yojana for Girl Child by Govt of India

Sukanya Samriddhi Yojana, initiated by the Government of India, is exclusively tailored to cater to the financial savings and future prospects of female children. It offers financial security, independence, and a promising future for a girl child. According to the provisions of this girl child program, individuals can deposit a minimum of Rs. 250/- and a maximum of Rs. 1,50,000/- per annum.

Benefits of Sukanya Samriddhi Yojana for Girl Child

Sukanya Samriddhi Yojana offers multiple benefits to its investors and beneficiary. Let us look at some of them:

Higher Interest Rate: The scheme acts as insurance for girl child. It offers a higher interest rate than most other savings schemes in India. The current interest rate offered under the scheme is 8.0%. The central government revises interest rates every quarter, which ensures growth of savings at a faster rate.

Tax Benefits: Sukanya Samriddhi Yojana offers tax benefits under Section 80C of the Income Tax Act. The contributions made towards the scheme are eligible for a tax deduction of up to Rs. 1.5 lakh per annum. The interest earned and maturity amount are also tax-free, which means that the entire amount can be withdrawn without any tax liability.

Long Term Savings: A long-term savings scheme, SSY is designed to help parents save for their daughters' future education and marriage expenses. The scheme has a tenure of 21 years ensuring that the savings grow significantly over time. Moreover, the scheme allows partial withdrawals after the girl child attains the age of 18 years, which can be used for higher education or other expenses.

Premature Withdrawal of Funds: Parents can opt for premature withdrawal from the account once the girl child attains 18 years of age and require funds for Higher Education.
However, only 50% of the account balance can be withdrawn in case of premature withdrawal at the end of the previous financial year. One can deposit money in the account for 15 years from the date of opening the account.

Guaranteed Maturity Benefits: When the Sukanya Samriddhi Account reaches the maturity date, the account balance, including the accumulated interest, is directly paid to the policyholder (girl child in this case). This is primarily done to render financial independence to the girl child, thereby acting as an efficient tool for their empowerment in India.

How To Open a Girl Child’s SSY Account?

Below are the steps one can follow to open a Sukanya Samriddhi Account:

Visit the nearest branch of the bank or post office and collect the application form.

Complete the application form and submit it along with the essential documents.

Pay the deposit amount ranging between INR 250 to INR 1 lakh.

The bank or post office will verify the details provided by the depositor. Upon its acceptance, a Sukanya Samriddhi Yojana account will be opened under the name of the girl child.

SSY Comparison with Other Investment Options

The table below shows a comparison of Sukanya Samriddhi Yojana with other investment options.