As per data available with National Savings Institute as on May end the amount saved by people under Sukanya Samriddhi Scheme (SSY) May 2021 stood at ₹1.05 lakh crores. SSY is one of the most popular small saving schemes for the girl child. Last year in May end the amount stood at 75,522 crores. The amount saved has increased by around 40% in the past one year.
The popularity of SSY is in line with the interest rate it is offering. Currently, the interest rate offered on SSY is the highest among all small saving schemes at 7.6%. SSY, launched in January 2015 as part of the government’s larger ‘Beti Bachao, Beti Padhao’ campaign, is aimed at encouraging and incentivizing Indian parents to educate and nurture their daughters.
Under SSY, the parent or guardian of a girl child between age zero and 10 years can open an account in the child’s name. Deposits can be made on a monthly or yearly basis for the next 15 years from the date of opening the account. Investments can’t be made after the 15-year period, but the account keeps gaining interest for the next seven years and matures after 21 years. You can withdraw only after the child turns 18 years, subject to certain conditions.
According to the Sukanya Samriddhi Account (Amendment) Rules, 2018, the minimum amount to open an SSY account has been reduced from ₹1,000 to ₹250. The maximum you can invest in a year is ₹1.5 lakh.
Deposits made in SSY qualify for tax deduction for up to ₹1.5 lakh under Section 80C of Income Tax Act. The amount of interest earned through the account, as well as the maturity amount is also tax-free.
SSY is ideal for parents saving for their daughters’ education, since the investment horizon aligns with the child graduating and pursuing higher education.
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