Searching for a way to save for the marriage and education expenses of your girl child? Sukanya Samriddhi Yojana, a deposit scheme introduced by PM Narendra Modi’s Beti Bachao Beti Padhao campaign in the month of January 2015, has been acquiring popularity among families that have a girl child. With an aim to secure the future of the girl child, the scheme provides some incentives to begin saving, including three great tax benefits.
In this article, we will discuss everything you need to know about Sukanya Samriddhi Yojana.
How do Investments under Sukanya Samriddhi Yojana Work?
As parents, you can make a minimum investment of Rs 1,000 and up to Rs 1.5 Lakhs each year into your daughter’s account in the Sukanya Samriddhi Yojana. These deposits can be made for the first fifteen years after opening the account, after which funds in the account would increase from the accumulated compound interest. The accumulated amount can assist your girl to fulfill her dreams of higher education, beginning a business or marriage, once she becomes stable.
Eligibility for Making Sukanya Samriddhi Yojna Account
• The account can be opened by the legal or natural guardian for a girl below 10 years of age.
• A depositor can open and run only one account in the name of a girl under the scheme rules.
• Legal or natural guardians of a girl is permitted to open the account for two girl children only.
How to Invest In the Sukanya Samriddhi Yojana
You can invest your money in this scheme via any nearby post office or designated branches of participating private and public banks. You will have to submit KYC documents such as Aadhaar Card, Passport, and so on, along with the essential form and initial deposit by draft or cheque.
Investors will have to fill the Yojana application form completely, which can be achieved by visiting a nearby post office or participating in a private or public sector bank. Also, you can download the SSY new account application form from the below-listed sources:
• The India Post Website
• The Reserve Bank of India Website
• The sites of participating private sector banks
• Individual websites of public sector banks (SBI, PNB, BoB, etc.)
While there are multiple sources for downloading the SSY application form, the fields in the form will be the same no matter what source it is.
Perks of Opening a Sukanya Samriddhi Yojana Account
1. You Just Need INR 250 for opening a Sukanya Samriddhi Yojana account
You can open an SSY deposit with an investment of INR 250, which was INR 1,000 before 5th July in the year 2018. The maximum deposit amount can be till INR 1.5 lakh. Do note that it is essential to make a deposit till 15 years from the date you have opened the account, failing which the account will become ‘Account under Default’. You can reactivate the account once again by giving a fine of INR 50 every year that you defaulted on making a deposit. The reactivation can occur until 15 years from account opening.
2. High Interest
Sukanya Samriddhi Account delivers a higher rate of interest in comparison to other Savings Plans that provide financial security for the girl child. Every financial year, the government releases the applicable interest rate for that specific year, while the interest on your investments is compounded every year. By maturity, the assets in Sukanya Samriddhi Yojana account will boost manifold- all because of the power of compounding.
3. Guaranteed Returns
Since SSY is a scheme provided by the government, it delivers guaranteed returns.
4. The Triple Tax Benefits you cannot ignore
If the above reasons are not enough to invest in this scheme, then below mentioned tax benefits is a must for you to read:
• Investment up to 1.5 lakh is eligible for a deduction under Section 80C under Income Tax Act.
• The interest gathered on the deposit is tax-free. The interest is then compounded annually.
• The amount you get on maturity is tax-free.
5. Guaranteed Maturity Benefits
On maturity, your account balance in Sukanya Samriddhi Yojana, involving the accumulated interest, will be paid directly to the girl. Hence, the scheme specifically assists your daughter to become financially stable and empowered once she is mature enough to make her own life decisions. Another advantage of investing in Sukanya Samriddhi Yojana is that your accumulated savings continue to accrue compounding interest even after it gets matured until it is finally closed by the a/c holder.
6. Helps Save for Your Girl Child’s Educational Expenses
If you are a guardian or a parent of a girl less than 10 years of age, you are eligible to open an SSY account for not more than 2 daughters. Here is the big bonus. After the girl ages 18, 50% of the balance can be given to meet education expenses. Admission proof needs to be submitted.
Sukanya Samriddhi Yojana offers the best investment chance for you to establish a sufficient corpus for your daughter when she becomes 18 years old. The Sukanya Samriddhi Yojana comes with a sovereign assurance, while its EEE status implies that it offers many perks to both the girl and the parent. Hence, you can invest a good chunk of your savings to the Sukanya Samriddhi Yojana to gather compounding benefits on your contributions so that your daughter can financially fulfill her dream of higher education as well as marriage despite inflationary pressures.
Wrapping It Up:
Sukanya Samriddhi Yojana is a small savings scheme provided by the government for the benefit of a girl child. There are different documents that you might need for opening the account. If you are planning to open an account in some other country in spite of your own then you might need to translate the documents. According to the language spoken in the place you want to open an account, a specific translation might be needed.
To translate it accurately, approach Tridindia as we can help you in providing affordable translation by the professionals. To know more information, call us at +91-8527599523 or mail us at email@example.com to know more about transcription.
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