Sukanya Samriddhi Yojana Benefits, Age Limit, Interest Rate

Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana: The Sukanya Samriddhi Scheme is a plan by the Indian government to help parents save money for their daughters. The goal is to support the parents in creating a fund for their daughter's future education and wedding expenses. It is also called the Sukanya Samriddhi Account and was introduced by Prime Minister Narendra Modi as part of the Beti Bachao, Beti Padhao campaign. The scheme started on January 22, 2015, in Panipat, Haryana.

This plan offers an interest rate of 8.4% and tax benefits for accounts opened between July and September 2019. People can open a Sukanya Samriddhi Account at any post office or authorized bank branch in the country.

Sukanya Samriddhi Yojana (SSY) Latest News

1. Increased Interest Rate: Now, the interest rate for Sukanya Samriddhi Yojana is 8% per year.
2. Changes in Account Closure: Previously, you could only close an SSY account when the girl turned 18. But now, you can close it earlier if the girl gets married or passes away.
3. Higher Investment Limit: The maximum amount you can invest in SSY accounts per year is now ₹1.5 lakh, up from the earlier limit of ₹1 lakh.

What is Sukanya Samriddhi Yojana (SSY)?

SSY is a savings scheme started by the Indian government in 2015. Its aim is to encourage parents to save for the future of their daughters. This government-supported savings plan provides a good interest rate and comes with tax benefits.

Sukanya Samriddhi Scheme Objectives

• Financial Stability for Girls: The scheme aims to ease the financial burden on parents and ensure a stable financial future for their daughters.
• Addressing Gender Imbalance: Despite efforts, India's gender ratio remains a concern, reflecting societal challenges. The Sukanya Samriddhi Yojana strives to change mindsets and promote equal treatment for girls.

It's encouraging to see the Indian government taking steps to shift attitudes towards girls and promote their well-being.

Sukanya Samriddhi Scheme Key Features

Know the important key features of the Sukanya Samriddhi Yojana below:

1. Age Limit for Account Opening: The account can be initiated in the name of a girl child who is below 10 years of age.
2. Deposit Range: A minimum yearly deposit of Rs. 250 is required, while the maximum allowed is Rs. 1.5 lakh per annum.
3. Competitive Interest Rate: Enjoy an impressive 8% per annum interest rate on the Sukanya Samriddhi Yojana, making it one of the highest among government-supported savings schemes.
4. Maturity Period: The account matures after 21 years.
5. Payout on Maturity: Upon maturity, the entire amount, along with accrued interest, is payable to the girl child.
6. Accessible Locations: Open the account conveniently at any post office or bank.
7. Authorized Operators: The account can be managed by the parents or guardians of the girl child.
8. Tax Benefits: Avail tax deductions under Section 80C of the Income Tax Act, 1961, by investing in the Sukanya Samriddhi Yojana.

How to Open Sukanya Samriddhi Account

Legal guardians of a girl child have the authority to open a Sukanya Samriddhi Account, a process permissible from the child's birth until she turns ten. Each child is entitled to only one account. The minimum initial deposit for this account is Rs. 250, with subsequent deposits accepted in multiples of a hundred.

Contributions can be made for 15 years, and the account remains active for 21 years from its opening date. Sukanya Samriddhi Yojana stands out as a lucrative fixed-income investment option. To initiate the account, the birth certificate of the girl child and other necessary identification documents must be provided to the bank.

Eligibility Criteria for Sukanya Samriddhi Yojana Account

The eligibility requirements for opening a Sukanya Samriddhi Yojana account are outlined as follows:

1. Only parents or legal guardians of the girl child have the authority to open an account in her name.
2. The girl child must be under 1 0 years old at the time of account opening, and the account remains active until she reaches 21 years of age.
3. The initial investment for opening the account is Rs. 250, with the opportunity for annual contributions up to a maximum of Rs. 1,50,000, allowing for additional deposits in increments of Rs. 100.
4. Each child is limited to a single account under the Sukanya Samriddhi Yojana.

Tax Advantages of Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana (SSY) provides its account holders with the following tax benefits:

1. Section 80C Deduction: You can get a tax deduction under Section 80C of the Income Tax Act, allowing you to save taxes on an amount of up to ₹1.5 lakh every financial year.
2. Tax-Free Interest: The interest you earn on your SSY account is not subject to income tax, letting you keep all of it.
3. Tax-Free Maturity Proceeds: When your SSY account matures, the total amount you receive, along with any interest earned, is exempt from income tax. This means you don't have to pay taxes on the money you get when the account reaches its maturity.

Beti Bachao, Beti Padhao Campaign Explained

Beti Bachao, Beti Padhao is a campaign started by the Government of India in 2015. It's all about saving and educating girls.

What is the Beti Bachao, Beti Padhao Campaign?

Beti Bachao, Beti Padhao is a nationwide initiative launched by the Government of India in 2015 to combat the issues of female feticide and infanticide in the country. The campaign's primary objective is to raise awareness about the significance of girls and to ensure that they receive equal opportunities as boys. It has been implemented across all states and union territories of India.

Background of the Beti Bachao, Beti Padhao Scheme

• In 2001, India's child gender ratio (0–6 years) stood at 927 girls for every 1,000 boys, but by 2011, it had declined to 918 girls per 1,000 boys, according to census statistics.
• A UNICEF survey in 2012 ranked India 41st out of 195 countries. The 2011 Population Census revealed a female population ratio of 943 for every 1,000 males, showing an increasing trend compared to the census data of 2001.
• On the International Day of the Girl Child in 2015, Prime Minister Narendra Modi called for the eradication of female foeticide and invited public suggestions through the MyGov.in platform.
• The campaign initially focused on multi-sectoral activities in 100 districts with poor Child Sex Ratio (CSR). Olympic bronze medalist Sakshi Malik became the brand ambassador for BBBP on August 26, 2016.
• The hashtag #SelfieWithDaughter gained global popularity when Sarpanch Sunil Jaglan from Bibipur, Jind in Haryana, started it on social media in June 2015.

Need for Beti Bachao Beti Padhao Yojana

The initiative emerged in response to the findings of the 2011 national census, revealing a decline in crucial gender indicators such as Child Sex Ratio (CSR) and Sex Ratio at Birth (SRB). CSR, representing the number of females per 1,000 boys aged 0-6 years, decreased from 945 in 1999 to 927 in 2001. In 2011, the ratio further dropped to 918 females for every 1,000 boys, indicating a significant decline. Analysis showed that SRB was the primary contributor to this deterioration.

The diminishing ratios signaled gender discrimination and women's disempowerment, encompassing pre-birth discrimination through gender-biased, sex-selective abortion and post-birth discrimination involving neglect of the health, nutrition, and education of girl children. The prevalence of a strong socio-cultural and religious preference for boys was identified as the main driver behind these issues, prompting the inception of the Beti Bachao, Beti Padhao movement.

Beti Bachao Beti Padhao Yojana Objective

The Beti Bachao Beti Padhao scheme is set up to tackle unfair treatment towards females in society and change people's attitudes. The main aims of the initiative are to address various issues, such as reducing the child sex ratio (CSR), empowering women, getting rid of gender-based inequalities, and ensuring the safety of girl children.

Other objectives of the plan include promoting education for girls and encouraging their active participation in society. To tackle the CSR problem, the plan involves widespread nationwide campaigns and government actions in 100 districts that were identified as having gender-related challenges in the 2011 Census.

Organizations Overseeing the Initiative

The Beti Bachao Beti Padhao Yojana is a countrywide effort managed by the Ministries of Women and Child Development (MoWCD), Health and Family Welfare (MoH&FW), and Human Resources Development (MoHRD).

Each of these bodies has specific responsibilities within the plan. The MoWCD is in charge of managing the budget and overseeing the administration of the BBBP. Meanwhile, the MoH&FW takes care of developing capacities and ensuring quality control. Additionally, the MoHRD has allocated funds for programs that encourage community participation.

Key Features and Benefits of Beti Bachao Beti Padhao Yojana

• One important aspect is making sure that every girl has the chance to go to school, promoting women's involvement in education.
• The plan aims to improve the balance between boys and girls in states like Uttarakhand, Delhi, Punjab, Haryana, and Uttar Pradesh.
• Discussions and talks are organized to spread awareness and make progress in reducing the Child Sex Ratio (CSR).
• Encouraging communities to be actively involved and working towards better development for girls from their birth.
• Spreading awareness about the BBBP system through large communication campaigns.
• Local authorities are being trained, and people from government agencies and schools are joining efforts to bring about cultural change.
• Another goal is preventing child marriage and safeguarding girls from physical and emotional harm, including domestic violence.
• The plan also focuses on promoting equality between genders.
• Financial support is encouraged for girls to ensure their education, growth, and development in the future.
• The BBBP plan works towards protecting girls and putting an end to cruel acts like foeticide and female infanticide.