The Sukanya Samriddhi Yojana (SSY) scheme offers an attractive interest rate of 7.6 per cent.
Sukanya Samriddhi Yojana (SSY) is one of the various welfare schemes run by the government of India. This scheme not only offers a risk-free return but also helps one plan for long-term goals like the marriage of their daughters. The Sukanya Samriddhi account can be opened by the natural or legal guardian for a girl child of age below 10 years. However, a person can open only one account in the name of a girl child. The scheme covers only two girl children per family, thus, one account each can be opened for both the girl child.
However, parents or guardians who have three girl children can also open a third account given they meet the criteria as specified by the government. The government has said that a Sukanya Samriddhi account can be opened for a third girl child in case twin-girls are born during the first delivery and another girl during the second delivery and vice-versa. So, if a person has three girl children and two of them are twins, all three will be covered under the Sukanya Samriddhi Yojana (SSY).
Sukanya Samriddhi Yojana Interest Rate, Tenure, Other Key Features:
The SSY scheme offers an attractive interest rate of 7.6 per cent. The interest income earned from the scheme is fully free from tax under Section -10 of the Income Tax Act 1961. Also, the investment made in the scheme qualifies for deduction under Section 80-C of Act.
When it comes to minimum investment amount, one can invest as low as Rs 250 and a maximum of Rs 1,50,000 per year in the account for a period of 15 years. The deposit will mature in 21 years.
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Also, if the minimum amount of Rs 250 is not deposited in any financial year, then the account can be revived by paying a penalty of Rs 50.
The account will attain maturity on completion of 21 years from the date of opening of the account. However, the operation of the account shall not be permitted beyond the date of marriage of the girl child.
To meet the financial requirements of the account holder for the purpose of higher education and marriage, the account holder can avail partial withdrawal facility after attaining 18 years of age. If the beneficiary is married before the maturity of the account, then the account has to be closed.
The Sukanya Samriddhi account can be transferred anywhere in India from one Post office/Bank to another.
The government has also made the scheme eligible for Triple exempt benefits i.e. there will be no tax on the amount invested, the amount earned as interest and amount withdrawn.
