Sukanya Samriddhi Yojana (SSY)

 

The Sukanya Samriddhi Yojana (SSY), launched on 22nd January 2015 as part of the Beti Bachao, Beti Padhao campaign, has now completed ten years. The scheme aims to secure the financial future of the girl child by promoting savings for their education and other needs.
 

Key Objectives:
 

1. Welfare of the Girl Child: To provide financial support for the higher education and other expenses of a girl child.
2. Financial Inclusion: Help parents build funds for their daughter's future needs.
    

Eligibility:
 

1. The account can be opened for a girl child below the age of 10 years.
2. Only one account can be opened in the name of a girl child by a depositor under the scheme.
3. The scheme allows parents or guardians to open an account for up to two girl children only.
    

Key Features:
 

1. Deposit Limits:
   1. Minimum deposit: ₹250.
   2. Maximum deposit: ₹1,50,000 per financial year.
   3. Deposits can be made for up to 15 years from the account opening date.
2. Tax Benefits: Contributions, interest earned, and maturity proceeds are exempt from tax under Section 80C of the Income Tax Act, making it a triple tax-free (EEE) scheme.
3. Interest Rate: The interest rate is revised quarterly by the Ministry of Finance and is calculated monthly based on the lowest balance between the 5th day and the end of the month.

• Interest is credited to the account at the end of each financial year.
   

Maturity & Account Management:
 

1. Maturity: The account matures 21 years after the account is opened.
2. Early Closure: Early closure is allowed if the girl reaches the age of 18 for marriage, subject to necessary documentation.
3. Account Control:
   1. The guardian manages the account until the girl child turns 18.
   2. At 18, the girl child gains control of the account by submitting the required documents.
       

Withdrawals:
 

1. For Education: The account holder can withdraw up to 50% of the balance after turning 18 or completing 10th grade, whichever comes first.
   1. Withdrawals can be made as a lump sum or in installments, with a maximum of one withdrawal per year for up to five years.
       

Premature Closure:
 

1. In Case of Death: The account can be closed immediately in case of the death of the account holder.
2. Compassionate Grounds: Premature closure may also be allowed under extreme circumstances, such as life-threatening medical conditions or the death of the guardian, but not within the first five years of account opening.