All About Sukanya Samriddhi Yojana (SSY)
By Anupama Deshpande | June 07, 2018
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Snapshot of Sukanya Samriddhi Yojana (SSY) : Guaranteed Tax Free Returns
| Point | Description |
|---|---|
| Name of the Scheme | Sukanya Samriddhi Yojana (SSY) |
| Purpose of Scheme | It is a deposit scheme for Higher Education and Marriage of Girl Child |
| For whom to Invest? | For a Girl Child |
| Who can Invest? | Any parent, natural or legal guardian of the girl |
| When to open account? | Anytime, from the birth of a girl till she attains age of 10 years |
| Tenure of Deposit | Till the completion of 15 years from the date of the opening of the account |
| Minimum Investment | Rs. 1,000 in a Financial Year |
| Maximum Investment | Rs. 1.5 lakhs in a Financial Year |
| Mode of Payment | Cash, Cheque, Demand draft or Electronic Fund Transfer |
| Where to Open SSY Account? | At any Post office or Authorised Bank branch |
| Lock in Period | 21 Years |
| Is Partial Withdrawal Allowed? | Allowed, 50% of the balance for higher education after the girl turns 18 |
| Rate of Interest | From January 1, 2018 to March 31, 2018 : 8.10% (these rates are notified by the government periodically and compounded yearly) |
| Can account be transferred? | Yes |
| Can the account be closed prematurely? | Yes, allowed after the completion of 5 years from the opening of account |
| Is the maturity Tax-Free? | Yes, the maturity benefit is totally Tax-Free |
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Eligibility Criteria of Sukanya Samriddhi Yojana (SSY)
- Any parent, natural or legal guardian of the girl child can open the account
- It can be opened anytime, from the birth of a girl till she attains age of 10 years
Suggested reading How to Open Senior Citizen Savings Scheme (SCSS) Account?
Document Required for Sukanya Samriddhi Yojana (SSY)
- SSY Account Opening Form
- Birth Certificate of girl child
- Identity proof (as per RBI KYC guidelines)
- Residence proof (as per RBI KYC guidelines)
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Tax Benefits under Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana (SSY) offers the highest tax-free return backed by government guarantee.
SSY has exempt-exempt-exempt (EEE) status which means:
- Annual Deposit qualifies for income tax benefit under section 80 C of the Income Tax Act, 1961.
- Interest generated is tax free
- Maturity benefit is totally Tax-Free
Suggested reading How to Open Senior Citizen Savings Scheme (SCSS) Account?
About Anupama Deshpande
Anupama is a Co-Founder of CodeForBanks.com. She is an MBA (Finance) and Chartered Financial Analyst (CFA). She also carries a Fellowship degree in Life Insurance Sector and is a Master of Computer Application (MCA). She is an expert in Finance Field with an experience of over 18 years on different managerial positions in finance industry including Stock Market, Depository and Mutual Fund Sectors. Apart from that she has remained for few years in the field of marketing as well. Her suggestions and advice for investments have been very useful to many people.Her vast interest & expertise in the field of finance have encouraged her to write the articles so that others can also get benefitted out of them. She never loses any opportunity to learn and be creative. She is a valuable asset for CodeForBanks.com & important resource to all those around her.