The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme aimed at securing the future of the girl child. Launched as part of the ‘Beti Bachao Beti Padhao’ campaign in 2015, SSY offers an attractive interest rate and tax benefits to parents or guardians who invest for their daughters’ future. This article provides details on How you can Accumulate 69 lakhs with the Sukanya Samriddhi Yojana Scheme when the girl child turns 21 years of age.
Also Read: Best Mutual Funds to invest in 2024 (as per Google AI Gemini)
Understanding Sukanya Samriddhi Yojana Scheme
The SSY scheme offers an interest rate that is declared quarterly by the government. As of the latest update (Apr-2024 to Jun-2024 period), the interest rate stands at 8.2%, ensuring a significant return on investment over the years. The scheme allows parents or guardians to invest up to Rs. 1.50 lakh per annum for a maximum of 15 years from the date of opening the account. The minimum deposit required to open an account is Rs. 250.
Features of Sukanya Samriddhi Account
Account Opening: The account can be opened by the guardian in the name of a girl child below the age of 10 years. Only one account is allowed per girl child, up to a maximum of two accounts in a family.
Deposits: Minimum deposit in a financial year is Rs. 250, while the maximum is Rs. 1.50 lakh. Deposits qualify for tax deduction under Section 80C of the Income Tax Act.
Interest: Interest is calculated on a yearly basis and compounded yearly. The interest earned is tax-free under the Income Tax Act. Current SSA interest rate is 8.2% per annum.
Withdrawal: Withdrawals can be made after the girl child attains the age of 18 years or after passing the 10th standard, subject to certain conditions.
Premature Closure: Premature closure is allowed under extreme compassionate grounds after 5 years of account opening.
What are the Premature withdrawal Rules in SSY?
Age of the Girl Child:
Premature withdrawals from the SSY account are permitted after the girl child attains the age of 18 years or after she completes her 10th standard examination, whichever is earlier. This provision ensures that the funds can be utilized for critical milestones in the girl child’s life, such as higher education or vocational training.
Withdrawal Limit:
The scheme allows for partial withdrawals of up to 50% of the balance available in the SSY account at the end of the preceding financial year. This withdrawal limit ensures that a portion of the accumulated funds remains intact for future financial requirements and long-term goals.
Purpose of Withdrawal:
Premature withdrawals from the SSY account are subject to specific purposes indicated in the scheme. It includes expenses related to the girl child’s education, marriage, or other significant life events. Investors are required to provide documentary evidence supporting the purpose of the withdrawn funds.
Frequency of Withdrawals:
Withdrawals from the SSY account can be made in one lump sum or in installments, not exceeding one per year, for a maximum of five years. This restriction on the frequency of withdrawals ensures wise financial management and prevents excessive reduction of the accumulated corpus.
Can we close the SSA before maturity period?
Premature closure of the Sukanya Samriddhi Account (SSA) is permitted under extreme grounds such as life-threatening illnesses affecting the account holder or the death of the guardian who operates the account. To initiate premature closure, investors must submit a prescribed application form along with relevant documentation to the concerned Post Office or bank branch. The authorities review the application and, if circumstances warrant, approve the closure request. However, premature closure may involve financial implications, including the forfeiture of certain benefits or interest penalties.
How to Accumulate 69 Lakhs with Sukanya Samriddhi Yojana Scheme?
Let us see how much money can be accumulated if one invests minimum and maximum amounts in this scheme.
Example 1: Minimum Investment Rs 250 per month
Suppose a parent invests the minimum amount of Rs. 250 per month consistently for 14 years. Considering the prevailing interest rate of 8.2%, the accumulated amount at the end of the investment period would be Rs 1.4 Lakhs.
Also Read: 20 Equity Mutual Funds that generated positive returns every year in last 10 years
Example 2: Investment of Rs. 12,500 per month
Let’s consider a scenario where a parent invests Rs. 12,500 per month consistently for 14 years. This amounts to Rs. 1.50 lakh per annum, utilizing the maximum limit allowed under the scheme. At the end of the investment period, the accumulated amount, considering the interest rate, would be approximately 69.2 lakhs. One should note that this amount would vary based on the change in the interest rates year on year.
Conclusion: The Sukanya Samriddhi Yojana scheme provides an excellent opportunity for parents and guardians to secure the financial future of their girl child. With attractive interest rates, tax benefits, and flexible withdrawal options, SSY stands as one of the most preferred investment avenues for the girl child’s education, marriage, and overall well-being.
- 11% Nido Home Finance NCD – Sep-2024 โ Details, Interest Rates and Review - September 17, 2024
- Difference Between Pure Term Plan and Term Plan with Return of Premium - September 10, 2024
- Bajaj Housing Finance IPO – Details, Review and Analysis - September 8, 2024
