Sukanya Samriddhi Yojana: A Financial Security Scheme

Why in the news?

The Sukanya Samriddhi Yojana (SSY) continues to gain attention for its role in promoting financial security for girl children, offering high interest rates, tax benefits, and enabling long-term investments for their education and future.

Sukanya Samriddhi Yojana: A Financial Security SchemeAbout Sukanya Samriddhi Yojana: Empowering the Girl Child:

  • Launched in 2015 under the Beti Bachao, Beti Padhao
  • Aimed at ensuring financial security for girl children.
  • Available for daughters under the age of 10, with accounts opened by parents or legal guardians.

Key Features

  • Minimum deposit: ₹250 annually, and a maximum of ₹1.5 lakh.
  • Deposit tenure: 15 years, with maturity after 21 years.
  • Interest rate: One of the highest among small savings schemes, compounded annually.
  • Tax benefits: Tax-free investment, interest, and maturity amount under Section 80C of the Income Tax Act.
  • Partial withdrawals allowed for higher education or marriage after the account holder turns 18.
  • Premature closure permitted in cases of life-threatening illnesses or death of the depositor.

Benefits & Impact

  • Encourages long-term saving, fostering financial independence for the girl child.
  • Provides security and financial stability, helping parents secure their daughter’s future.
  • Promotes gender equality, aligning with India’s vision for education and progress for all.

Sources Referred:

PIB, The Hindu, Indian Express, Hindustan Times