The Sukanya Samriddhi Yojana (SSY), a popular savings scheme designed for the future of daughters, is undergoing a significant change that will come into effect on October 1, 2024. This change, introduced by the Indian government, requires immediate attention from parents and legal guardians. Failing to act could result in the closure of your daughter’s SSY account, which is widely known for securing funds for education and marriage.
If your daughter’s SSY account was opened by someone who is not her legal guardian or natural parent, you need to transfer the account immediately. With just a couple of days left to comply with the new rule, here’s everything you need to know about the Sukanya Samriddhi Yojana and its latest changes.
Key Features of Sukanya Samriddhi Yojana: Invest for Your Daughter’s Future
Launched in 2015, Sukanya Samriddhi Yojana was introduced by the Narendra Modi-led government to encourage parents to save for their daughter’s education and marriage. One of the most appealing aspects of this scheme is that you can start an SSY account with just Rs 250. Additionally, the scheme offers an impressive 8.2% interest rate, making it a great long-term investment option.
Only Two Days Left to Transfer the Account: Government’s New Rule
The latest change in Sukanya Samriddhi Yojana applies specifically to accounts opened under the National Small Savings Scheme (NSS). The government has mandated that if the account was opened by someone other than the legal guardian or natural parent, it must be transferred to the correct party by October 1, 2024. If this transfer does not take place, the account may be closed.
This change is designed to ensure that the financial planning for the daughter’s future remains strictly in the hands of her parents or legal guardians. Given the importance of this rule, parents must act fast to avoid complications.
How Sukanya Samriddhi Yojana Can Make Your Daughter a Millionaire
Sukanya Samriddhi Yojana is widely regarded as one of the most effective savings schemes for securing your daughter’s financial future. The scheme’s long-term investment structure, combined with its high interest rate, makes it possible for your daughter to become a millionaire by the time she turns 21.
For example, if you open an SSY account when your daughter is 5 years old and invest Rs 1.5 lakh annually for 15 years, the total investment will amount to Rs 22.5 lakh. With an interest rate of 8.2%, the account would generate an additional Rs 46.77 lakh in interest. By the time your daughter reaches 21, the total corpus will exceed Rs 69 lakh, ensuring that she has substantial funds for her education or marriage.
Tax Benefits and Withdrawal Flexibility in Sukanya Samriddhi Yojana
In addition to offering a high interest rate, Sukanya Samriddhi Yojana also provides tax benefits. Under Section 80C of the Income Tax Act, you can claim deductions of up to Rs 1.5 lakh per year, making it a tax-efficient investment option.
Furthermore, the SSY scheme allows partial withdrawals once your daughter turns 18. Parents can withdraw up to 50% of the account balance for higher education purposes. However, these withdrawals must be supported by documents proving your daughter’s education needs. The remaining balance can continue to earn interest, ensuring that there are funds available when she is ready for marriage or other life milestones.
Important Guidelines for Opening an SSY Account
For those who haven’t yet opened an SSY account, here are the key eligibility criteria:
- You must be an Indian resident and the parent or legal guardian of the girl child.
- The SSY account can be opened any time between the birth of the girl and when she turns 10 years old.
- Parents can open SSY accounts for a maximum of two daughters. However, if there are twin daughters, you can open an account for all three.
The minimum deposit required to open an account is Rs 250, while the maximum annual deposit is Rs 1.5 lakh. Deposits can be made for 15 years, after which the account continues to earn interest until maturity at 21 years.
Next Steps: Act Now to Avoid Account Closure
With only two days left before the new rule takes effect, parents must take immediate action if their daughter’s SSY account was not opened by the legal guardian. Transfer the account to the rightful person as soon as possible to ensure the account remains active.
This change in Sukanya Samriddhi Yojana is aimed at safeguarding the future of daughters by ensuring that their financial planning is managed by their parents or legal guardians. The government has also designed this scheme to be flexible, offering high returns, tax benefits, and partial withdrawal options, making it an attractive option for securing your daughter’s future.
