What is Sukanya Samriddhi Yojana and how to open Sukanya Samriddhi Yojana Account online

March 03, 2019

sukanya-samriddhi-yojana-open-ssy-account-online

The NDA government launched the "Beti Bachao, Beti Padhao" initiative in January 2015 with an aim to end gender discrimination against the female child. Under this initiative, the government has launched many schemes to help girl child along with their families.

One such scheme is the Sukanya Samriddhi Yojana (SSY) which is intended to encourage parents to start a savings scheme for their girl child. Let us have a look at this scheme in detail and how to open an account.

What is SSY?

SSY is a savings scheme targeted towards the parents of girl children. It aims to help parents in ensuring that their girl child has a bright future with her education and marriage expenses are managed by this savings scheme.

Under the scheme, the parent or legal guardian of a girl child can open a small savings account in a post office or approved banks until the girl is ten years old.

Returns on SSY account investment

The investments done in Sukanya Samriddhi Account earns interest which is annually compounded. The rate of interest is adjusted annually. Currently, this savings account earns 8.5% interest annually.

Compared to other popular investment options that parents often select for their children such as PPF, SSY currently offers higher interest.

Minimum and maximum investment amount

While the minimum investment amount was Rs. 1,000 a year in the past, it has been recently reduced to Rs. 250. However, the maximum amount continues to be Rs. 1.5 lakhs in a financial year.

However, there are no limits on the number of deposits you can make.

Sukanya Samriddhi Scheme Maturity

The parent or legal guardian of a girl child can keep investing in this savings account for up to 14 years. The account will then continue to earn interest until the girl turns 21. The invested amount, as well as the accumulated interest, is then paid to the girl. There is a provision for partial 50% withdrawal from the account after girl turns 18 provided it is for her marriage expenses.

The returns from the scheme are entirely tax-free under Section 80C of the IT Act.

Opening Sukanya Samriddhi Account online

You can open a Sukanya Samriddhi Scheme account online from the official website of banks registered under the scheme. To open the account, you’ll be required to submit a few documents such as-

  • SSY Account Opening Form
  • Birth Certificate of the girl child
  • Aadhar Card of the girl child
  • ID proof and address proof

Similarly, you can also visit the branch office of a bank or post office for opening the account.

Empowering girl child with SSY

With the expenses of day-to-day life increasing consistently, it is your responsibility as a parent to start saving for your child especially girl from an early age. While there are now several investment options, the Sukanya Samriddhi Yojana is government-backed and one of the most reliable.

Get in touch with an authorised bank to know more about the scheme and empower your daughter with a financially secure future.

 

 

DISCLAIMER

The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially. The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject lClCl Bank or its affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient's own risk. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith by lClCl Bank and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. lClCl Bank does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith and sources considered reliable by lClCl Bank. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Past performance cannot be a guide to future performance. 'lClCl ' and the 'I-man' logo are the trademarks and property of lCICl Bank. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited.

Comments()