SSY- Sukanya Samridhi Yojana- key features

What it is?

Sukanya Samridhi Yojana is a government-backed saving scheme as a part “Beti Bacho, Beti Padhao”

Yojana for benefits of the girl child.

Who can open?

It can be open by the parents of a girl child below the age of 10.

Parents can now open up to two SSY accounts for girls & a third account can be open in case of birth of twins/triplets.

Multiple accounts cannot be opened for a single girl child.

What is tenure?

The account has tenure of 21 years or until the girl child marries after the age of 18.

However contribution only need to be made for 15 years, thereafter the account continues to earn interest until maturity even if no deposits are made into it.

How much Interest?

Interest for FY 2020 is 7.6%, compounded annually. The interest rate is fixed by government & revised quarterly.

How much amount to invest?

Minimum amount is 250/- & maximum is 1.50/- Lakhs in a Financial year.

You have to invest atleast the minimum amount every year for up to 15 years from the date of account opening.

Thereafter the account will continue to earn interest till maturity.

Tax benefits?

This investments are designated as an EEE(Exempt, Exempt, Exempt) investment.

Principal Invested, Interest earned as well as the maturity amount are tax free.

Principal Invested upto 1.5Lakh per annum can be claim deduction under section 80C

Other Features?

If account holder is unable to make even the minimum deposit of Rs 250/- in a financial year, his/her account will be termed as a ‘default Account’. Till maturity date, this default account will earn the interest rate as applicable in the scheme.

Premature closure of SSY account can only be processed in case of death of the girl or in some particular cases:-

· Medical treatment of the girl child against some life-threatening disease
· Death of guardian

Girl child can operate her own account after the age of 18 years

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