Sukanya Samriddhi Yojana Details: Eligibility, Benefits, and More

Introduction

Sukanya Samriddhi Yojana is a major initiative by the Government of India that offers significant financial security to the girl child. Launched under the “Beti Bachao, Beti Padhao” campaign, Sukanya Samriddhi Yojana scheme was specifically designed to provide a bright future for a girl child by ensuring her financial independence at a very early stage of their life. Here, we delve into the Sukanya Samriddhi Yojana details, spreading light on its benefits, eligibility, and other pertinent aspects.

Eligibility Criteria

To begin with, as the main eligibility criterion, Sukanya Samriddhi Yojana can only be availed by parents or legal guardians of a girl child who is below the age of ten. Moreover, the scheme allows for the opening of only one account per child, and a maximum of two accounts for two girl children in a family. In special cases where the first or second delivery results in twins or triplets, provision for the third account is also available.

Interest Rate and Investment Details

One of the key components of the Sukanya Samriddhi Yojana details is the interest rate, which is currently at 7.6% p.a. (as per the FY 2020-21). Notably, this interest is compounded yearly and is fully exempt from tax under Section 80C of the Income Tax Act. The scheme matures after 21 years from the date of opening the account, or on the girl’s marriage after she has attained the age of 18. An initial investment of INR 1000 is required to open the account, after which any amount in multiples of INR 100 can be deposited. The maximum limit of deposit under this scheme is INR 1.5 lakh in a financial year.

When it comes to benefits, the Sukanya Samriddhi Yojana scheme offers many. Firstly, it serves as an excellent long-term saving plan for a girl child’s education and marriage expenses. The high-interest rate ensures growth of the investment over time. Secondly, the scheme is tax-efficient. The interest earned and the maturity amount received are both tax-free. Thirdly, it encourages the habit of saving money regularly. With regular deposits, the parents or legal guardians can accumulate considerable funds till maturity.

Rules and Regulations

However, it’s important to consider some of the scheme’s rules that might limit flexibility. The account becomes inactive if the minimum deposit of INR 1000 isn’t made in a year. Also, the withdrawal is highly regulated. Only 50% of the savings can be withdrawn once the girl turns 18. The rest of the amount can only be withdrawn either when the account matures after 21 years or if the girl gets married after turning 21.

Sukanya Samriddhi Yojana, thus, offers several benefits. Still, the investor must gauge all the pros and cons of trading in the Indian financial market. While the scheme does come with attractive sukanya samriddhi yojana interest rates and tax benefits, investors might want to consider diversification to mitigate risk.

Summary: 

Sukanya Samriddhi Yojana is a special initiative by the government of India to secure the future of a girl child by providing her financial independence early in life. The scheme offers many benefits, including a high interest rate (7.6% p.a.), tax exemption, and an excellent long-term saving plan for education and marriage expenses. However, it has certain restrictions, such as withdrawal regulations. Despite the attractive sukanya samriddhi yojana interest, investors are suggested to evaluate all aspects of trading in the Indian financial market before investing, including risk diversification.

Disclaimer: 

All investments come with risks, and past performance is no guarantee of future returns. Therefore, the intent of this article is to provide information, not advice. It’s important that readers use their judgement and consult with a certified financial planner and relevant government agencies before making any decisions based on the content of this article.