LIC Kanyadan Policy and Sukanya Samriddhi Yojana are both savings and investment plans, but they are designed for different purposes and have different features.
LIC Kanyadan Policy provides insurance and financial protection in case of the death of the parent, the Sukanya Samriddhi Yojana is a long-term saving scheme for the girl child’s future. Both plans have their features and benefits, and it’s always best to evaluate one’s requirements and select the plan that best suits their needs.
Difference Between Sukanya Samriddhi and Kanyadan Policy
| Name of Policy | Term of Policy | Premium Paid (Yearly) | Sum Assured after maturity | Payment Term |
| Lic Kanyadan Policy | 15 Years But the account holder has to pay the premium till 3 years before the policy term. Therefore premium has to be paid for 12 years. | 39966 + 4.50% GST | Rs. 5 Lakhs | 12 Years |
| Sukanya Samriddhi Yojana | 21 Years of Age | Minimum:250 Maximum:150000 | Rs.46,821 (for Rs. 1000 per year) | 15 Years |
Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana (SSY) is a savings scheme launched by the Government of India for the welfare of the girl child. The scheme was launched as a part of the “Beti Bachao, Beti Padhao” campaign, to encourage parents to save for the future education and marriage expenses of their girl child.
The scheme is aimed at promoting the welfare of the girl child and encouraging parents to save for their future education and marriage expenses. It’s also a great way to earn a good return on investment with tax benefits. It’s always advisable to check for any updates and changes in the scheme with the Government website or with a banking institution where the account is opened.
Sukanya Samriddhi Yojana Interest Rate 2024-25
Here is a detailed overview of the previous SSY Interest Rate-
| Time Period | SSY Interest Rate % (Annually) |
| July To September (Q1 FY 2024-25 ) | 8.2 |
| April To June (Q1 FY 2024-25 ) | 8.2 |
| January to March 2024 (Q4 FY 2023-24) | 8.2 |
| October to December 2023 (Q3 FY 2023-24) | 8.0 |
| July to September 2023 (Q2 FY 2023-24) | 8.0 |
| April to June 2023 (Q1 FY 2023-24) | 8.0 |
| January to March 2022 (Q4 FY 2022-23) | 7.6 |
| October to December 2021 (Q3 FY 2022-23) | 7.6 |
| July to September 2022 (Q2 FY 2022-23) | 7.6 |
| April to June 2022 (Q1 FY 2022-23) | 7.6 |
| January to March 2022 (Q4 FY 2021-22) | 7.6 |
| October to December 2021 (Q3 FY 2021-22) | 7.6 |
| July to September 2021 (Q2 FY 2021-22) | 7.6 |
| April to June 2021 (Q1 FY 2021-22) | 7.6 |
| January to March 2021 (Q4 FY 2020-21) | 7.6 |
| October to December 2020 (Q3 FY 2020-21) | 7.6 |
| July to September 2020 (Q2 FY 2020-21) | 7.6 |
| April to June 2020 (Q1 FY 2020-21) | 7.6 |
| January to March (Q4 FY 2019-20) | 8.4 |
| October to December 2019 (Q3 FY 2019-20) | 8.4 |
| July to September 2019 (Q2 FY 2019-20) | 8.4 |
| April to June 2019 (Q1 FY 2019-20) | 8.5 |
| January to March 2019 (Q4 FY 2018-19) | 8.5 |
| October to December 2018 (Q3 FY 2018-19) | 8.5 |
| July to September 2018 (Q2 FY 2018-19) | 8.1 |
| April to June 2018 (Q1 FY 2018-19) | 8.1 |
| January to March 2018 (Q4 FY 2017-18) | 8.1 |
| October to December 2017 (Q3 FY 2017-18) | 8.3 |
| July to September 2017 (Q2 FY 2017-18) | 8.3 |
| April to June 2017 (Q1 FY 2017-18) | 8.4 |
Basic Details of Sukanya Samriddhi Yojana
Here are some key highlights of the Sukanya Samriddhi Yojana (SSY):
- The scheme is specifically designed for the girl child under the age of 10 years and can be opened by the parents or legal guardian of the girl child.
- The minimum deposit to open the account is Rs. 250 and the maximum deposit that can be made in a financial year is Rs. 1,50,000
- The deposits made in the SSY account earn interest at the rate fixed by the Government of India, which is currently around 8.2% p.a. ( as of 2024)
- The interest earned is tax-free and the deposits made in the account are also eligible for tax deductions under Section 80C of the Income Tax Act.
- The deposit period is up to 15 years from the date of opening the account, and the account can be closed before maturity, in case of marriage of the account holder after attaining the age of 18 years.
- Withdrawals are allowed after the age of 18, provided the girl child is not married. Withdrawals are allowed after 21 years from account opening.
- A loan facility is also available under the scheme, under certain conditions.
- A nomination facility is available at the time of opening the account.
- Minimum deposit of Rs 250 and no maximum limit for deposit per year
- Transfer of account from one post office/bank to another is allowed.
Benefits of Sukanya Samriddhi Yojana
The Sukanya Samriddhi Yojana (SSY) provides several benefits to encourage parents to save for the future education and marriage expenses of their girl child:
- High-Interest rate: The deposits made in the SSY account earn interest at the rate fixed by the Government of India, which is currently around 8.2% p.a ( as of 2024). This is higher than the interest rate offered by most savings accounts and fixed deposits.
- Tax benefits: The interest earned is tax-free and the deposits made in the account are also eligible for tax deductions under Section 80C of the Income Tax Act.
- Long deposit period: The deposit period is up to 15 years from the date of opening the account, which gives sufficient time for parents to save for their daughter’s future.
- Premature withdrawal: Withdrawals are allowed after the age of 18, provided the girl child is not married. Withdrawals are allowed after 21 years from account opening. This can be useful in case of the need for funds for the girl child’s education or marriage.
- Loan Facility: A loan facility is also available under the scheme, under certain conditions.
- Nomination Facility: A nomination facility is available at the time of opening the account
- Easy Transfer: Transfer of account from one post office/bank to another is allowed.
- Small deposit: Minimum deposit of Rs 250 and no maximum limit for deposit per year
How To Open a Sukanya Samriddhi Account?
Here are the general steps to open a Sukanya Samriddhi Yojana (SSY) account:
- Obtain the “Sukanya Samriddhi Yojana Account Opening Form” from a designated post office or bank branch.
- Fill out the form with the required personal and account information of the girl child and the parent or guardian opening the account.
- Attach the required documents, such as the birth certificate of the girl child and proof of identity and address of the parent or guardian.
- Make an initial deposit into the account, which can be as low as INR 250.
- Submit the completed form, along with the required documents and initial deposit, to the designated post office or bank branch.
- After verifying the form and documents, the post office or bank branch will open the account and issue an account number and passbook.
- You can now make regular deposits into the account and earn interest on the deposits. You can also opt for the auto-debit facility from your bank account, in case you want to make regular deposits.
Documents Required To Open Sukanya Samriddhi Account
The documents required to open a Sukanya Samriddhi Yojana (SSY) account are:
- Birth certificate of the girl child, as proof of age.
- Proof of identity and address of the parent or guardian opening the account, such as PAN card, Voter ID, Aadhaar card, or passport.
- Recent passport-size photograph of the parent/guardian and the girl child
- Canceled cheque or a copy of the passbook, if you want to make the deposits through electronic modes like ECS or NEFT.
- Nomination form if you want to appoint a nominee at the time of opening the account.
LIC Kanyadan Policy
This plan is just a modified version of the LIC Jeevan Lakshay Plan and there is no such plan called the LIC Kanyadan Policy.
If you want to give a special gift to your daughter then a good investment with fewer premiums is the best. One can invest in their girl child so that the amount could give financial assistance for the education or the marriage of the girl.
Lic has launched this new plan to give relief to the parents of the girl as the parents can invest now at the beginning for their girl. The basic details of this policy are provided below.
Basic Features of LIC Kanyadan Policy
- Financially Independent: The girl child will be able to stand independently and pay her higher educational fees or marriage expenses without asking for help from others.
- Life Risk Coverage: If the girl child meets any life-threatening disease before 3 years of the maturity date. Full financial assistance will be provided for the medical coverage.
- Sum Assured: The child would be able to get the sum assured in a lump sum amount at the time of maturity.
- In The Case of a father’s Unfortunate Death: For example, if the total amount after maturity is 10 lakhs then the immediate amount that would be provided to the daughter will be in the following way:
- In case of accidental demise of father: In such cases, a 100% amount will be given with immediate payment of rupees 10 lakhs made for the girl child.
- In the case of the non-accidental demise of the father: In such cases, 50% of the sum assured that is rupees 5 lakhs will be provided to the girl in such an unfortunate case.
- Before maturity: In this 10% of the sum assured until the maturity date of the policy, the rupees 50,000 will be paid every year.
- Can People Living Outside Avail Its Benefits: If any Indian citizens live outside the country then they can avail of this facility without coming to the country again and again.
How To Apply For LIC Kanyadan Policy?
- Visit the official LIC website or contact an LIC agent to gather detailed information about the LIC Kanyadan Policy, including its benefits, features, and terms.
- Use the LIC premium calculator available on the LIC website to calculate the premium amount based on your financial goals and the policy term.
- Get in touch with an authorized LIC agent who can guide you through the application process and provide personalized advice.
- Obtain the LIC Kanyadan Policy application form from the LIC office or download it from the official LIC website.
- Fill in the required details accurately, including personal information, nominee details, and policy terms.
- Attach required documents such as identity proof, address proof, age proof, and a recent passport-sized photograph.
- Submit the filled application form along with the attached documents and the first premium payment at the nearest LIC branch office or through the LIC agent.
- Once the application is processed and approved, you will receive the LIC Kanyadan Policy document. Ensure that all details are correct and keep the document safe for future reference.
Documents Required For Applying
- The birth certificate of the girl child has to be provided.
- Any address proof has to be submitted by the parents.
- Along with this the financial income record of parents also has to be submitted.
- Any identification ID for the parent or guardian is to be attached to the form.
Benefits of Lic Kanyadan Policy
- The first benefit of the scheme is that the paying term for the premiums will be less.
- This type of insurance plan can be termed as savings for the future of the girl.
- One can also choose the Premium mode according to their feasibility that is – monthly, quarterly, half-yearly or annually.
- If in any case the applicant or the guardian dies then 10% of the sum assured is to be paid every year till the maturity date of the scheme.
- One can avail of this scheme for 6, 10, 15, or 20 years as per their suitability.
Conclusion
Therefore, both schemes assist the girl child after and before the age of maturity to deal with any financial problems. This scheme will help the girl child to continue her dreams without any gap. One can choose either of the schemes as per their preference or their requirement. All other details are available on the official websites of the scheme and there only one would be able to fill out the application form to avail of the benefits under the scheme.
