New Delhi: Sukanya Samriddhi Yojana is a Government of India savings scheme for the financial security of a girl’s education and future.
The guardians can open a small savings account for the girl child with tax benefits and an interest rate that currently stands at 8.2%. Launched under the Beti Bachao, Beti Padhao initiative, the scheme enables parents to build a fund at any India Post office or branch of an authorised commercial bank.
Eligibility
The scheme provides a path to financial security for the girl’s education and marriage expenses while availing certain benefits related to tax and interest. However, the eligibility criteria limit who can avail themselves of the scheme based on age, residency, and guardianship. Thus, Non-Resident Indians must go through the conditions necessary to enjoy the benefits of SSY.
The India Post website mentions that the individual must be a resident of India and must not have attained the age of 10 years at the time of opening the account. Moreover, a family can open accounts for a maximum of two girls; some exceptions may apply.
The guardian operates the account till the holder reaches the age of 18. Once the beneficiary attains the age of 18, he/she shall submit the required documents and operate the account. No beneficiary shall have more than one account.
Deposit and withdrawal
The account can be opened with a minimum deposit of Rs. 250, and a minimum deposit of Rs. 250 or a maximum of Rs. 1.5 lakh has to be made each financial year, either in a lump sum or in instalments. Deposits can be made till the completion of fifteen years from the date of opening the account. In case the person fails to make a deposit of the minimum amount during a financial year, the account will be treated as a defaulted account. However, the account can be regularised at any time within fifteen years from the date of opening by paying a penalty of Rs. 50 and depositing the minimum amount for each year of default.
Withdrawal of 50% of the balance at the end of the preceding year can be made for the purpose of education. The holder must either have attained the age of eighteen or passed high school. One withdrawal, either in a lump sum or in instalments, can be made per year, for a maximum of five years. The amount must not exceed the requirement based on the offer of admission or the relevant fee slip issued by the educational institution.
Interest
The Ministry of Finance notifies the interest rate from time to time, which currently stands at 8.2% p.a. No tax is levied on the interest credited at the end of each financial year.
Though NRIs may avail themselves of certain mutual funds, insurance, FDs, and bank loans, the Sukanya Samriddhi Yojana is not for them. It can only be availed of if the girl as well as the guardians are residents of India.