Sukanya Samriddhi Yojana (SSY) is a scheme launched by the Government of India under the "Beti Bachao Beti Padhao" campaign. It is a savings scheme aimed at ensuring the financial security of the girl child in the country. The scheme offers a safe and secure investment option to parents or legal guardians of the girl child to save for their daughter's future education and marriage expenses.
Under the Sukanya Samriddhi Yojana
Parents or legal guardians can open a Sukanya Samriddhi account in the name of the girl child. The account can be opened for a girl child aged 10 years or younger. The account can be opened in any post office or authorized bank branch in India.
The Sukanya Samriddhi account has a minimum deposit requirement of Rs. 250 per year and a maximum of Rs. 1.5 lakh per year. The account can be operated till the girl child reaches the age of 21 years, after which the account will be matured. However, if the account is not closed after maturity, it will continue to earn interest as per the prevailing rates.
One of the major advantages of the Sukanya Samriddhi Yojana is the interest rate offered on the scheme. The current interest rate for the scheme is 7.6% per annum, which is revised and notified by the Ministry of Finance every quarter. The interest rate offered under the scheme is much higher than the interest rate offered on other small savings schemes like PPF, NSC, etc.
How to calculate?
To calculate the maturity amount of the Sukanya Samriddhi account, an SSY calculator can be used. The SSY calculator takes into account the principal amount, the interest rate, and the tenure of the scheme to calculate the maturity amount. The SSY calculator is available online on various websites and can be used to determine the amount of investment required to achieve the desired corpus at maturity.
Apart from the high interest rate offered under the scheme, the Sukanya Samriddhi Yojana also provides tax benefits to the account holder. The amount invested in the scheme is eligible for a deduction under Section 80C of the Income Tax Act, 1961. The interest earned on the scheme and the maturity amount are also tax-free.
Benefits
The Sukanya Samriddhi Yojana has been a huge success since its launch, with millions of accounts being opened across the country. The government has also taken several steps to promote the scheme, including increasing the interest rates and simplifying the account opening process.
One of the major advantages of the Sukanya Samriddhi Yojana is that it is a safe investment option for parents or legal guardians of the girl child. The scheme is backed by the Government of India, and the deposits made in the scheme are guaranteed by the government. The scheme also provides a fixed and guaranteed return on investment, making it a safe and secure investment option.
Another advantage of the scheme is that it encourages parents to save for the education and marriage expenses of their girl child. In India, the education and marriage expenses of a girl child are a significant financial burden for parents. The Sukanya Samriddhi Yojana provides a platform for parents to start saving early for their girl child's future expenses, thus reducing the financial burden in the future.
The Sukanya Samriddhi Yojana is available at all post offices and authorized bank branches across the country. This makes it a convenient investment option for parents or legal guardians of the girl child. The account can be opened with a minimum deposit of Rs. 250, and the deposits can be made in cash or cheque.
Benefits, and guaranteed returns, making it an attractive investment option for parents. With the convenience of being available at all post offices and authorized bank branches, the Sukanya Samriddhi Yojana is a scheme that every parent should consider for their girl child's future financial security.
In a country like India, where the education and marriage expenses of a girl child are a significant financial burden for parents, the Sukanya Samriddhi Yojana provides a much-needed platform for parents to start saving early for their daughter's future expenses. It not only helps in reducing the financial burden but also promotes the education and empowerment of the girl child.
Interest Rate
The Sukanya Samriddhi Yojana (SSY) is a popular savings scheme launched by the Government of India to promote the welfare of the girl child. It is a long-term investment plan that offers a high-interest rate compared to other government schemes. The interest rate of SSY is reviewed and revised quarterly by the Ministry of Finance, Government of India.
As of April 2023, the interest rate for the SSY scheme is 7.6% per annum, compounded annually. The interest rate for the SSY scheme is relatively high compared to other savings schemes such as Public Provident Fund (PPF) and National Savings Certificate (NSC), which offer an interest rate of 7.1% and 6.8%, respectively.
One of the most significant advantages of the SSY scheme is that it provides tax benefits under Section 80C of the Income Tax Act, 1961. Moreover, the interest earned and the maturity amount of the scheme are tax-free, making it an excellent option for investors who want to save taxes.
The interest rate of the SSY scheme is subject to change as per the quarterly review by the Ministry of Finance. However, once you invest in the SSY scheme, the interest rate remains the same for the entire tenure of the scheme, i.e., 21 years from the date of opening the account.
In conclusion, the Sukanya Samriddhi Yojana is a scheme that every parent should consider for the financial security of their girl child. With its high-interest rates, tax benefits, and guaranteed returns, the scheme provides a safe and secure investment option to parents. The scheme not only helps in reducing the financial burden but also promotes the education and empowerment of the girl child, making it an essential investment option for every parent.