Sukanya Samriddhi Yojana Scheme Benefits | Interest Rate

Sukanya Samriddhi Yojana Scheme was launched by the government in 2015 under the campaign “Beti Bachao Beti Padhao”. It is a government back scheme that's why safe investment.

This scheme was launched to encourage the girl child to grow in life. Under this scheme parents / guardians of girl children can invest money for the future of girls.

Girls must be below 10 years of age at the time of opening the account. The rate of interest for Sukanya Samriddhi Yojana Scheme from 1st Jan 2024 to 30th September 2024 is 8.2% per annum and it may change from time to time.

 

What are the features of the Sukanya Samriddhi Yojana scheme?

Before investing in the Sukanya Samriddhi Yojana scheme one should know its features. The following are the important features of the scheme are:

 

1) Amount of deposit

You have to invest minimum rupees 250 per annum and it can be maximum rupees 150000 per annum means you have to invest at least rupees 250 every year to keep your account active.

If you do not deposit at least rupees 250 per annum your account will be deactivated and then you have to pay a penalty for reactivating your account.

It is not necessary that you have to invest only once in a year. It is your choice to make any number of deposits in a year.

 

2) One account for one girl child

You can open only one account for one child maximum for two girls.

More than two accounts can also be opened in a family, in the case of twin or triple girl’s means:

• If twin girls are born after the first girl child then the 3rd girl account can be opened.
• If a triple girl child is born at first then the third account can also be opened.
• But if a third girl child is born after the twin girls then the 3rd girl account cannot be open.

 

3) Lock in period

There is a lock-in period of 21 years in Sukanya Samriddhi Yojana. You have to keep your deposit for 21 years.

 

4) Tenure of deposit

Your account will mature after 21 year of completion from opening of the account but it does not mean that you have to deposit the amount for 21 years.

You need to deposit the amount only for 15 years from opening of account and thereafter you do not need to deposit. Interest on investment continuously calculated after 15 years.

 

5) Transferring the account

In case of change in residence address then you can easily transfer your account within India by just depositing certain documents like residence proof & transfer request etc.

 

What are the various tax benefits of Sukanya Samriddhi Yojana?

Investment in Sukanya Samriddhi Yojana Scheme provide various tax benefit as follow:

• Investment amount in Sukanya Samriddhi Yojana is eligible for tax deduction of maximum rupees 150000 under section 80c of Income Tax Act 1961.
• The whole interest received on this investment is exempt from income tax.
• Withdrawal from account is also exempt from any tax.

Because of the various tax benefits this investment always remains in the eye of investors. Along with secure futures for girls also provides tax benefits.

 

What are the eligibility criteria for investment in Sukanya Samriddhi Yojana?

Before investing in Sukanya Samriddhi Yojana Scheme one should know the eligibility criteria:

 

Eligibility criteria

• At the time of opening the account the girl child must be below the age of 10 years. If the age of the girl child is above the age of 10 year then she becomes ineligible for investment.
• You can open only one account for one girl child. Maximum of two girls' accounts per family is allowed.
• In the case of twin or triple girls, if twin girls are born after the first girl child then third account can be opened and also if triple girls child is born at first then third account can be opened but if third girl child is born after twin girls then third count cannot be open.
• Minimum investment should be rupees 250 per year and maximum rupees 150000 per annum.
• Bank account can be opened in the name of a girl child by her parents or legal Guardians.

 

What is the withdrawal procedure of Sukanya Samriddhi Yojana?

You can withdraw the balance in account at maturity or partially or premature.

 

A) Withdrawal on maturity

On completion of 21 years from opening the account you can withdraw your fund along with interest. Withdrawal from this account exempt from tax. You just need to complete the documents requirement of the bank or post office like application for withdrawal, ID proof etc.

 

B) Withdrawal partially

In the event of higher education or marriage of girl child you can withdraw partial amount from your account balance but you need to fulfill the following condition for partial withdrawal:

• You can partially withdraw up to 50% of the balance.
• Before making partial withdrawal a girl child must be 18 years old or more.
• Partial withdrawal can be made for the reason of Higher Education must have complete 10th standard.

 

C) Premature closure of account

Account can be closed prematurely i.e. before completion of 21 year only in the following case:

• If the girl child is getting married after turning the age of 18 years.
• If the residential status of a girl child is changed.
• In the case of the death of a girl child.
• In case the amount required for medical treatment of a girl child.

In order to premature withdrawal you need to submit certain documents to the bank or post office as the case may be.

 

What is the procedure of opening accounts for Sukanya Samriddhi Yojana?

You can open an account in Sukanya Samriddhi Yojana Scheme by visiting your nearest post office or Bank. Both banks and post offices provide this facility.

You need to fill the Sukanya Samriddhi Yojana (SSY) application form. You can also download application form online. You have both the option of filling application form online or offline.

In application form you need to fill the following field like:

• Name of girl child
• Name of parents / guardian
• Birth date of girl child
• KYC of parent or guardian
• Permanent address proofs
• Deposit amount
• Other documents as required by bank or post office

Then after checking the eligibility criteria bank or post office as the case may be may allow you to open the account and start the investment.

 

What are the benefits of investing in Sukanya Samriddhi Yojana?

This scheme is very popular and preferred by investor as a same provide various benefit which are listed below:

 

1) Small investment

This is the most important benefit i.e. you can invest in account with a small amount of rupees 250 per annum. This amount also fits in the budget of low income families who cannot afford large investment but they want their girl child future to be secure.

 

2) Premature closure of account

In the following case you can premature close your account even before the expiry of 21 year:

• If girl is getting married after turning the age of 18 years
• If the residential status of the girl child changed.
• In case of death of girl child
• In case of the amount required for medical treatment of a girl child.

 

3) Triple tax benefit

This facility along with securing the future of girl child also provide three tax benefit which are:

• The amount invested is allowed for deduction upto rupees 150000 under section 80c of Income Tax Act 1961.
• Withdrawal from investment is fully exempt from tax.
• Interest earned on this investment is also exempt from the income tax.

 

4) Best interest rate of Sukanya Samriddhi Yojana Scheme

Sukanya Samriddhi Yojana Scheme provides the best interest rate i.e. from 1st January 2024 to 30th September 2024 is 8.2% per annum. These interests are fixed by the government and change time to time.

 

Conclusion

Sukanya Samriddhi Yojana (SSY) is a government backed scheme which provides guarantee for return and amount needed for future for girls child's. You can use this fund for marriage, higher education for girl children. This investment also provides various tax benefits. You must think about investing in Sukanya Samriddhi Yojana Scheme (SSY).

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