Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme providing tax advantages for girls. The Sukanya Samriddhi Yojana assists families in accumulating funds for their daughter’s advanced studies and wedding expenses.
Parents of a girl child can open an SSY account from their daughter’s birth until she reaches 10 years of age. Regular investment in the Sukanya Samriddhi Yojana, especially putting in the maximum yearly deposit, can yield several lakhs at the time of the SSY account maturity.
Let’s take a look at the top facts about Sukanya Samriddhi Yojana’s interest rate, deposit requirements, maturity specifications and tax benefits.
Sukanya Samriddhi Yojana Interest Rate Details
The scheme currently provides an 8.2% annual interest rate with yearly compounding. The Ministry of Finance reviews and adjusts these rates quarterly. Interest calculations consider the lowest balance maintained between the sixth and final day of each calendar month. The interest amount gets credited to accounts at the financial year’s conclusion.
Sukanya Samriddhi Yojana Deposit Specifications
Opening an account requires an initial deposit of Rs 250. The yearly deposit ceiling stands at Rs 1.5 lakh, with contributions accepted in Rs 50 increments. Depositors can make unlimited transactions throughout the financial year.
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Sukanya Samriddhi Yojana Calculator
According to HDFC Bank’s calculations, investing Rs 1.5 lakh annually at the present 8.2% interest rate yields Rs 71,82,119/- at maturity. The SSY account matures 21 years after it is opened. This sum comprises the principal investment of Rs 22,50,000/- and earned interest of Rs 49,32,119/-.
Sukanya Samriddhi Yojana Account Eligibility
Legal guardians can establish accounts for girls below 10 years. Families are typically restricted to two accounts, one per girl child. Special provisions allow additional accounts for multiple births, such as twins or triplets.
Sukanya Samriddhi Yojana Duration of Deposits
Account holders can deposit funds for a 15-year period from the date of opening a Sukanya Samriddhi Yojana account. The account becomes dormant if the minimum deposit requirement is not fulfilled in any financial year. To restore the account’s active status, one must pay Rs 250 and an additional Rs 50 as a penalty fee for each defaulted year.
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Sukanya Samriddhi Yojana Tax Benefits
Under Section 80C of the Income Tax Act, deposits in a Sukanya Samriddhi Yojana Account qualify for tax deductions up to Rs 1.5 lakh annually. The scheme offers complete tax exemption on interest earnings, making it a tax-efficient investment option.
Sukanya Samriddhi Yojana Account Operation
Until the girl child attains 18 years of age, the guardian maintains control of the Sukanya Samriddhi Yojana account. Subsequently, the account control transfers to the girl child, enabling her to manage it independently.
Sukanya Samriddhi Yojana Withdrawal Provisions
The account holder can access funds after turning 18 or completing 10th standard education. The withdrawal limit is set at 50% of the previous financial year’s closing balance. This amount can be withdrawn either as a single payment or in yearly instalments spread across a five-year period.