The Sukanya Samriddhi Yojana (SSY) is a popular government-backed savings scheme in India that aims to empower the girl child through financial security and savings for her education and marriage. Launched as part of the Beti Bachao, Beti Padhao campaign, this scheme offers attractive interest rates with the aim of ensuring a secure future for girls.
What is Sukanya Samriddhi Yojana?
The Sukanya Samriddhi Yojana was launched by the Government of India in 2015 under the Beti Bachao, Beti Padhao campaign. It is a savings scheme specifically designed for the girl child and can be opened by parents or legal guardians for girls below the age of 10 years.
Sukanya Samriddhi Yojana Interest Rate
One of the key highlights of the Sukanya Samriddhi Yojana is its interest rate. The interest rate is revised by the government every quarter, based on the prevailing market conditions. The rate is compounded annually and credited to the account.
Current Interest Rate
As of October 2021, the interest rate for the Sukanya Samriddhi Yojana is 7.6% per annum. It is important to note that this rate is subject to change and is announced by the government on a quarterly basis.
Benefits of Sukanya Samriddhi Yojana Interest Rate
- High Returns: The interest rate offered under the Sukanya Samriddhi Yojana is one of the highest among small savings schemes in India.
- Tax Benefits: Contributions made towards the scheme are eligible for tax deductions under Section 80C of the Income Tax Act.
- Long-term Savings: The scheme has a tenure of 21 years, making it ideal for long-term savings for the girl child.
- Financial Security: The scheme provides financial security for the girl child’s education and marriage expenses.
How is Interest Calculated?
The interest on the Sukanya Samriddhi Yojana account is calculated on the minimum balance between the 10th and the last day of the month. The interest is compounded annually and credited to the account at the end of the financial year.
Factors Affecting Interest Rate
Several factors can influence the interest rate of the Sukanya Samriddhi Yojana, including:
- Market Conditions: The interest rate is dependent on the prevailing market conditions and is revised quarterly.
- Government Policies: Changes in government policies can also impact the interest rate offered under the scheme.
- Economic Outlook: The overall economic outlook and inflation rates can play a role in determining the interest rate.
Frequently Asked Questions (FAQs)
- Can I open more than one Sukanya Samriddhi Yojana account for my daughter?
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No, only one account can be opened for a single girl child.
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What is the minimum and maximum deposit allowed in a Sukanya Samriddhi Yojana account?
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The minimum deposit is Rs. 250 per annum, and the maximum deposit should not exceed Rs. 1.5 lakh in a financial year.
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Is premature withdrawal allowed under the scheme?
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Premature withdrawal is allowed under specific circumstances, such as medical emergencies or in the event of the death of the account holder.
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Can I transfer my Sukanya Samriddhi Yojana account from one bank/post office to another?
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Yes, the account can be transferred from one bank/post office to another within the country.
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What happens if I fail to deposit the minimum amount required in a financial year?
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A penalty of Rs. 50 will be levied if the minimum annual deposit condition is not met.
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Is the interest earned on the Sukanya Samriddhi Yojana account taxable?
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No, the interest earned and the maturity amount are both exempt from tax.
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Can the girl child operate the account once she reaches a certain age?
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The account can be operated by the girl child once she reaches the age of 10 years.
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Is there a provision for partial withdrawals before the maturity of the scheme?
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Yes, partial withdrawals of up to 50% of the balance are allowed once the girl child reaches the age of 18 for educational purposes.
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What documents are required to open a Sukanya Samriddhi Yojana account?
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Documents such as the girl child’s birth certificate, identity proof, and address proof of the guardian are required to open an account.
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Can NRIs avail of the benefits of the Sukanya Samriddhi Yojana?
- No, NRIs are not eligible to open a Sukanya Samriddhi Yojana account.
In conclusion, the Sukanya Samriddhi Yojana is a valuable savings scheme for securing the future of the girl child. With its attractive interest rate and tax benefits, it serves as an effective tool for long-term financial planning and ensuring the education and marriage expenses of the girl child are taken care of.