Sukanya Samriddhi Yojana (SSY) Calculator

About Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana (SSY) is a Government of India backed savings scheme aimed at the parents of girl children. The scheme encourages parents to build a fund for the future education and marriage expenses for their female child.

Key features of the scheme include a high-interest rate, tax benefits, and a tenure of 21 years from the date of opening the account. Contributions to the SSY account can be made for up to 15 years, after which the account continues to earn interest until maturity.

Key Features

Eligibility:

• The SSY account can be opened by the parents or legal guardians of a girl child.
• The girl child must be below 10 years of age at the time of account opening.

Account Opening:

• A girl child can have only one SSY account in her name.
• The account can be opened at any post office or authorized branches of commercial banks.

Deposit Limits:

• A minimum of ₹250 must be deposited in a financial year.
• The maximum deposit limit is ₹1.5 lakh per financial year.
• Deposits can be made in multiples of ₹50.
• Contributions can be made for up to 15 years from the date of account opening.

Interest Rate:

• The interest rate for SSY is determined by the government and is subject to periodic changes. It generally offers a higher interest rate compared to other savings schemes.
• The interest is compounded annually.

Tenure and Maturity:

• The account matures after 21 years from the date of opening.
• If the girl child gets married before the completion of 21 years, the account needs to be closed.
• Deposits are required for the initial 15 years, after which the account continues to earn interest till maturity.

Tax Benefits:

• Contributions to SSY are eligible for tax deductions under Section 80C of the Income Tax Act.
• The interest earned and the maturity amount are tax-free, providing a significant tax benefit to the account holder.

Withdrawal:

• Partial withdrawal of up to 50% of the account balance is allowed once the girl child attains 18 years of age for the purpose of higher education or marriage.
• The remaining amount can be withdrawn after the account matures.

How to Open an SSY Account:

Documents Required:

• Birth certificate of the girl child.
• Identity and address proof of the parent or guardian.
• Photographs of the child and the guardian.

Process:

• Visit a post office or authorized bank branch.
• Fill out the SSY account opening form.
• Submit the required documents and the initial deposit.

Conclusion

Sukanya Samriddhi Yojana is an excellent initiative for parents to secure the future of their daughters. It not only provides a high interest rate but also offers significant tax benefits. By investing in SSY, parents can ensure that they have a substantial corpus for their daughter's education and marriage, thereby contributing to her financial independence and empowerment.