The government has introduced the Sukanya Samriddhi Yojana to make the journey of parenting the girl child even more beautiful and smooth.

What is Sukanya Samriddhi Yojana?

The Government has initiated this plan with an idea of better investment plans for the parents to secure the future of their girl child and provide them with a better lifestyle to live.

In this plan, any citizen of India can open a bank account in favor of his daughter so that they can have deposited their savings to provide her with a better future. It is an integrated part of the “Beti Bachao – Beti Padhao” initiative. As per the government terminologies, a parent or the legal guardian of a girl child can open an account in the name of his/her daughter until she attains the age of ten years.

Under the Sukanya Samriddhi Yojana, a minimum of Rs. 250 and Rs. 1.5 Lakh on the higher side can be deposited during the running financial year. SSY account also offers income tax benefits under the Income Tax Act Section 80C. It is appreciable that the government of India is taking steps to change the mindset of the people towards the girl child. Anyone can open the SSY account in the name of their girl child at any nearby post office or the specifically designated banks.

Who can be an SSY account holder?

An SSY account can be opened by any citizen of India who is either a parent of the girl child or the legal guardian. The account can be opened from her birth till she attains the age of 10 years. The depositor can open an account only in the name of the girl child.

Benefits of Sukanya Samriddhi Account

Savings account with the highest interest rate

Among the various savings account options, it is known that this savings account provides the highest rate of interest. It is also associated with the fact that the rate of interest will be linked with the market. The interest rates will be declared on the deposits in this scheme for every year by the government of India. The amount of interest will be deposited to the account on a yearly basis.

Savings on tax

The government has even exempted the contributions to this account and the account holders in terms of paying the tax under the 80C section of Income Tax Act, 1961. This initiative is taken by the government just to encourage more people to open Sukanya Samriddhi Accounts.

Lock-in-period

This account will get mature only when the girl attains an age of 21 years or if she is getting married. Even if she is getting married, then it is also necessary that she must have an age of 18. The amount can be withdrawn during the time of her wedding. But, in case if the family wants funds for the higher education of the child, only one withdrawal is permitted when the girl attains an age of 18 years. In case of premature withdrawal, only 50% of the balance accrued can be withdrawn.

Interest paid even after the maturity of the account

In this scheme, the payment of interest will continue to be paid until the account is closed by the holder finally.

Flexibility

The girl child is given freedom of operating her account by her own once she attains the age of 10. One can transfer this account to any part of the country.

Sukanya Samriddhi Account Calculator

An SSY account is extremely beneficial for the parents who want to save from an early stage so that they can provide a better future to their child. This amount can be used by them for better education of their daughter and also can be used for her marriage. Also, there is an SSY account calculator available, which can be used to calculate the actual and estimated interest earned on the total savings throughout the tenure of the SSY account.

Rules and Regulations for Opening an SSY Account

• The account can only be opened by either the parents or the legal guardian of the girl child.
• Only one account can be opened for a girl child under the Sukanya Samriddhi Yojana.
• The birth certificate of the girl is required at the time of opening the bank account.
• Few other documents related to the identity proof and proof of residence are also required.

Mode of Deposit in the SSY Account

The parents or the guardian can deposit the amount in the bank directly via cash or can even submit a cheque or demand draft. Various e-payment solutions can also be used such as NEFT and IMPS. Also, with mobile banking has become the most preferred option for the users, they can also opt the option of UPI to transfer the amount to the SSY account.

When can an SSY account be closed

The Sukanya Samriddhi Yojana account can be normally closed once the girl crosses the age of 21. However, if there comes any unforeseen circumstance, which cannot be avoided, then you can request to close your account and request for the withdrawal of the balance deposited in your account till that date. These reasons can either be a life-threatening disease or the unfortunate death of the girl child. Under such a situation, the required documents must be submitted to the bank and then they will process the closure of the bank account.