A Comprehensive Guide to Sukanya Samriddhi Yojana SSY: Sukanya Samriddhi Yojana 2024
Today, we will learn about the intricacies of Sukanya Samriddhi Yojana (SSY), a financial initiative launched by Prime Minister Modi in 2015. The scheme is designed to pave the way for secure financial planning, especially for the higher education and marriage of girls. , In a world where financial preparedness can make all the difference, SSY stands as a symbol of foresight."
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Objective and Benefits of Sukanya Samriddhi Yojana:
Financial planning for the future: SSY aims to remove the financial constraints that parents may face while funding their daughter's education or marriage.
Preventing forced compromise: Lack of financial planning may force some parents to take drastic decisions, such as forcing their daughters to leave higher education or resorting to high-interest loans for wedding expenses.
Eligibility and Account Opening:
Who can open SSY account: Any parent who has a daughter can open SSY account until the girl child turns 10 years old.
Where to open an account: Options include post offices, public sector banks (SBI), and private sector banks ( ICICI Bank).
Documentation:
Documents Required: Birth certificate of the girl child and KYC documents like PAN card or Aadhar card.
Deposit Limits and Flexibility:
Minimum and Maximum Deposit: The minimum deposit amount is just Rs 250, making it accessible to all. Maximum annual deposit is Rs 1,50,000.
Flexibility in Deposits: Multiple deposits are allowed throughout the year, with a minimum deposit of Rs 50 per transaction.
Maturity and closure of account:
Age limit for opening the account: SSY account can be opened until the girl turns 10 years of age, but the ideal suggestion is to open it in the year of her birth.
Maturity Age: The account matures after 21 years, emphasizing the importance of early financial planning.
Interest Rates and Tax Benefits:
Current interest rate: As of April 2023, the interest rate is 8%, which beats options like Public Provident Fund (PPF).
Benefits of EEE category: SSY falls under the EEE category, which offers deduction on deposits, tax-free interest and tax-free maturity amount.
Exceptions and Withdrawals:
Withdrawal exceptions: Exceptions include withdrawal for higher education (up to 50% of the balance), marriage (100% of the balance), or in case of life-threatening illness (after a minimum of five years).
Comparison with PPF:
Interest Rate Comparison: SSY offers higher interest rate (8%) compared to PPF (7.1%).
Lock-in period and loan facilities: SSY has a lock-in period of 21 years, while PPF has the added benefit of a lock-in period of 15 years and loan facilities.