Benefits and Analysis of Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana

The Government of India has undertaken several measures to strengthen its women empowerment mission. From educating masses on girl child protection to launching financial schemes to sustain the needs of a girl, the GOI has generated a massive response from guardians across the country.
Government-funded investment schemes such as Sukanya Samriddhi Yojana (SSY), Balika Samriddhi Yojana, and CBSE Udaan Scheme have become popular among the concerned guardians of female children. These schemes aim to provide a dependable financial option to meet a girl child’s educational and social needs. 
The benefits of SSY initiative are widely discussed; a detailed look into the scheme will help an individual plan the financial future of a girl child. 
What is Sukanya Samriddhi Yojana? 
Sukanya Samriddhi Yojana (SSY) is a savings scheme, the objective of which is to fulfil the financial needs in the course of growth of a girl child. 
Sukanya Samriddhi accounts can be availed from post offices and registered financial institutions by the parents or legal guardians of a girl child. Withdrawal facilities can be availed when the girl attains the age of 21. 
Why opt for SSY?
Guardians of a girl child, also considered as depositors, avail Sukanya Samriddhi Yojana benefits to finance the education and marriage of girl children. 
Investors can safeguard the financial future of their girl child by funding her higher education with the returns from this scheme. 
Sukanya Samriddhi Yojana: Features
Availing SSY facilities is an easy process. Individuals can keep track on investments with the right knowledge. The features of SSY are -
  • Legal guardians of girl children below the age of 10 can open and operate a Sukanya Samriddhi account in the name of the latter. 
  • These accounts can be opened at post office branches and authorised financial institutions. 
  • Only one account is allowed for a single girl child. However, a family can have a maximum of two accounts for two girl children. 
  • The account has a lock-in period until the girl attains 21 years. Only 50% of the amount saved can be retrieved when the girl child reaches 18. 
  • This investment scheme requires a minimum annual deposit of Rs.250 and a maximum of Rs.1.5 lakh. 
  • The girl child is allowed to operate the account once she reaches 18. 
  • Individuals can deposit funds in the form of cash, cheque, demand draft, as well as online fund transfer. 
  • In case of non-payment of yearly funds, the depositor runs the risk of account closure. The depositor has to pay a penalty of Rs.50 to reactivate the SSY account. 
Benefits of SSY
The Sukanya Samriddhi scheme offers guardians of girl children across India several benefits. The lock-in period being prolonged, individuals can accumulate a large corpus of funds over the years. Additionally, the rate of interest for SSY is 8.5%, thus providing high returns as per the tenor.
SSY is also one of the tax saving investment options under Section 80C. Individuals can avail tax exemptions of up to Rs.1.5 lakh for higher savings amount. 
Documents required for SSY application
Individuals looking to invest in SSY need to possess the following documents for application -
  1. Birth certificate of the girl child for age verification.
  2. Valid KYC documents of the depositor such as Aadhaar Card, Voted ID, and PAN card
  3. Address proof of the depositor like electricity bills, gas bills, driving license, etc. 
SSY application
Depositors can request SSY account forms from post offices and financial institutions. The following steps are required for application -

  • Fill up the SSY application form thoroughly.
  • Provide relevant documents.
  • Deposit an amount of your choice.
  • Link the account to your financial company for yearly deposit payments. 
Other investment options to build a corpus
Fixed deposits are an alternate form of an investment option that you can opt for, owing to its flexible withdrawal facilities also with attractive interest rates. 
NBFCs like Bajaj Finance offer Fixed Deposit (FD full form) facilities to investors looking for a corpus growth for secured financial future. 
Individuals can deposit for flexible tenors of 12 to 60 months for increased fund liquidity. This facility provides multiple accounts to users, auto-renewal, along with a Systematic Deposit Plan (SDP) for convenient monthly deposits. 
In short, Sukanya Samriddhi Yojana provides a more viable investment solution to citizens. However, individuals should consider other options before investing. 

Author Bio:
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.

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