Introduction
The Sukanya Samriddhi Account Scheme (SSAS) is a small savings scheme introduced by the Government of India under the Beti Bachao, Beti Padhao campaign. It was launched in 2015 to promote the welfare of the girl child by encouraging parents to build a financial corpus for her education and marriage. This scheme is one of the most popular tax-saving and long-term investment options for families with daughters.
Objective of the Scheme
The primary aim of the Sukanya Samriddhi Account Scheme is to secure the financial future of a girl child. It motivates parents or guardians to save systematically and provides attractive interest rates along with tax benefits.
Eligibility Criteria
A Sukanya Samriddhi Account can be opened in the name of a girl child below the age of 10 years. Parents or legal guardians are allowed to open and operate the account on behalf of the child. Only one account can be opened for a girl, and a maximum of two accounts are allowed in a family, except in the case of twin or triplet daughters.
Minimum and Maximum Deposit
The account can be opened with a minimum deposit of ₹250. Every year, a minimum of ₹250 must be deposited to keep the account active. The maximum annual deposit allowed is ₹1.5 lakh. Deposits can be made in multiples of ₹100, either through cash, cheque, demand draft, or online transfer.
Interest Rate
The scheme offers one of the highest interest rates among small savings schemes. The interest is decided by the Government of India and is reviewed quarterly. The interest earned is compounded annually and credited to the account, helping the savings grow significantly over the years.
Tenure and Maturity
The maturity period of the Sukanya Samriddhi Account is 21 years from the date of opening or upon the girl’s marriage after she turns 18. However, contributions to the account can be made only for 15 years. The account continues to earn interest till maturity even if no further deposits are made after the 15th year.
Partial Withdrawal Facility
To support higher education needs, partial withdrawal of up to 50% of the balance is allowed when the girl turns 18 years old or completes her 10th standard, whichever comes earlier. This ensures that the funds can be utilized for essential educational expenses.
Tax Benefits
The Sukanya Samriddhi Account Scheme comes under the Exempt-Exempt-Exempt (EEE) category. Contributions made to the account are eligible for tax deductions under Section 80C of the Income Tax Act, up to ₹1.5 lakh annually. The interest earned and maturity proceeds are also completely tax-free.
Account Operation and Transfer
Initially, the account is operated by the parent or guardian. Once the girl reaches 18 years of age, she can operate the account independently. The account can also be transferred anywhere in India if the parent or guardian shifts residence.
Premature Closure
In special circumstances such as the untimely death of the account holder or financial hardship faced by the guardian, the account can be prematurely closed. However, this is permitted only under specific rules set by the government.
Benefits of the Scheme
The Sukanya Samriddhi Account Scheme ensures financial security for the girl child. It combines high returns, tax savings, and the safety of a government-backed scheme. It also instills the habit of long-term savings among families and guarantees that the girl child has funds for her education and marriage when required.
The Sukanya Samriddhi Account Scheme is a valuable initiative for the empowerment of the girl child. By offering a secure, disciplined, and rewarding savings option, it helps parents plan for the future with peace of mind. Families with daughters should consider this scheme as an essential step towards securing their child’s future.
