Thursday, September 24, 2020

Sukanya Samriddhi Yojana

 Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana Interest Rate 9.2% Lock in Period: Till the girl turns 21.  Up to 50% of the balance can be withdrawn after the girl turns 18.  After 18 years, if the girl gets married, all the money can be withdrawn before maturity.  Tax Benefit: Deduction under 80C for investment up to 1.5 Lakhs. Investment limit: Rs 1,000 to Rs 1.5 Lakhs. Advantage: Highly tax-free and guaranteed return.  Ideal scheme for parents seeking to create an education fund for a child up to the age of 10 years.  Disadvantages: Long enough lock in period.  Its liquidity is very low as compared to PPF.

Account opening in SSY (0-10) years

 Accounts under SSY can be opened only for girls below 10 years of age.  A certificate of birth is necessary for this.  Under SSY scheme only accounts of two daughters of a family can be opened.  Also, two accounts of one girl cannot be opened.  Age has a big role to take full advantage of SSY scheme.

Read in Gujarati

 Five years of SSY

 The first opportunity to withdraw funds from the account in SSY comes after the completion of five years of opening the account.  According to the rules, this permission can also be given only in very serious medical conditions.  Even after this, if due to some reason the closure of SSY account comes, then interest is paid according to the post office savings bank account.

 Ten years of SSY

 If the girl becomes 10 years old then she can operate her own SSY account.  She can deposit the amount in her SSY account herself.  However, the parents of the child can also deposit the amount in this SSY account.

 15 years of SSY

 To open an account with SSY, the initial deposit amount should be at least 250 rupees.  Up to Rs 1.5 lakh can be deposited in SSY account annually.

 To keep SSY account active, it is necessary to deposit the amount for the first 15 years.  For a 9-year-old girl, it is necessary to deposit the amount in SSY account till the age of 24 years.  From 24 to 30 years of age of the girl child (till the account matures), interest will be paid on the amount deposited in the SSY account.

 SSY is actually a long term investment scheme.  There are many provisions to withdraw small amount or full amount from SSY account before the time is over, although these are difficult.

 18 years of SSY

 The next time to withdraw money from SSY account is when the girl turns 18 years of age.  There are clear rules about this money will be used only by the girl and not by anyone else.  Maximum 50 percent of last year's SSY account balance can be withdrawn for the higher education of the girl child.

 For this only written application is not enough, but a confirmed admission offer, or fee slip of any educational institute will have to be shown, so that it can be proved that the money really is needed for the education of the girl child.  There is also a limit to withdraw money from SSY account and it cannot be more than the fees or other admission expenses and all the evidence is also needed for this.

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