1. Small Initial Deposit Requirement
- You can open a Sukanya Samriddhi Yojana (SSY) account with a minimum deposit of INR 250 (previously INR 1,000 before July 5, 2018).
- The maximum deposit allowed is INR 1.5 lakh.
- Remember to make regular deposits until 15 years from the account opening date to avoid it going into “Account under default.” You can reactivate it by paying a fine of INR 50 per year for missed deposits.
2. Saving for Education Expenses
- Parents or guardians of girls aged less than 10 years can open an SSY account for up to two daughters.
- The big advantage: After the girl turns 18, 50% of the balance can be withdrawn to meet educational expenses (proof of admission required).
3. Triple Tax Benefits
- The SSY offers tax benefits that you cannot ignore:
- Section 80C Deduction: Deposits up to INR 1.5 lakh are eligible for a deduction under the Income Tax Act.
- Tax-Free Interest: The interest earned on the deposit is tax-free and compounded annually.
- Tax-Free Maturity Amount: Even the amount received upon maturity is tax-free.
4. Attractive Interest Rates
- The SSY provides an interest rate of 8.6% (for accounts opened between October 1, 2018, and December 31, 2018), making it one of the highest rates among small saving schemes.
5. No Deposits Required After 15 Years
- After 15 years, you need not make any further deposits until the account matures (which is 21 years from the date of opening).
- Interest continues to accrue on the existing deposit.
6. Premature Withdrawal Allowed Under Special Circumstances
- After maintaining the account for 5 years, premature withdrawal is allowed in cases of:
- Financial burden due to medical reasons on the girl child.
- Death of a guardian or parent.
- Beneficiary’s marriage after attaining the legal age of 18 years (intent of marriage should be notified in advance).
In summary, the Sukanya Samriddhi Yojana not only encourages affordable investments but also empowers the girl child, promotes gender equality, and ensures a brighter future for our daughters. ????????????????
