Benefits of Sukanya Samriddhi Account Scheme

Sukanya Samriddhi Account Scheme (SSAS) is a Government controlled small deposit savings scheme for girl children. The scheme was launched in 2014.

The scheme is a great initiative by the Government of India to protect girl children from social disparity and strengthen them with education. The scheme is a great way to build enough funds for your daughter in the long term for her education or other expenses.

In this article, we will explain all about the scheme like;

How to open an account under SSAS?
What are the current interest rates in SSAS?
Is this really a good scheme to accumulate enough funds for your daughter?

And many such things which you must know if you have an account under this scheme or if you're are planning to open an account for your girl child under SSAS.

So before moving further and discuss the scheme and its benefits in detail, let us look at the background of the scheme and why such new scheme came in force to protect the girl children in our society. 

Education is very important for the growth of any Nation. And when there is a disparity between a girl and a boy in the society it impacts us all. If we look at the latest census figures on the literacy rate of women in India, we find that women literacy rate (64.46) is far below the male literacy rate (82.14). There are also some Indian states where the women literacy rate is shockingly low. This also comes with a very disappointing correlation in the child sex ratio. The census data from 2001-2011 found that the child sex ratio has dropped from 927 females/1000 males in 2001 to 919 females/thousands males in 2011. 

These figures clearly suggest we are a male-dominated society. We treat our girl children as a liability, and think they belong to a different family and would leave us one day for their husbands.

This is a reason; we never care about their educations and empowerment. 

However, the Government is making its best effort to improve child sex ratio, but we as parents have bigger roles to play. We have to treat our boys and girls in the same manner and give them the education that could help them to flourish themselves and the nation.
Here are some key things in the form of frequently asked questions that would clear all your queries about the Sukanya Samriddhi Account Scheme.

Does the sukanya samriddhi account scheme really make sense?

Definitely yes, most of the Indian population is lower middle class. With the ever increasing education cost, it becomes very challenging for parents to accumulate enough funds for the education of their children.
This scheme is good for parents who want to save money for their girl children for the long term.
However, the interest rate on the scheme changes time to time but this is a good investment product for parents who want to save money particularly for their girl children without worrying for loss of capital.

Who can open an account under SSAS?

The account can be opened for a girl child by his parents or any legal guardians in a post office or any of Government of India authorized banks. The age of the girl child must not exceed 10 years when the account is opened. Only one account is allowed for a girl child.

What are the documents required for opening of account under SSAS?

Following documents are required during the opening of the account under sukanya samriddhi account scheme:

1. The birth certificate of the girl child for whom the account is being opened.
2. Photograph of the account holder.
3. The proof of identity of the depositor.
4. The address proof of the depositor.

How to open an account under SSAS?

If you want to open an account for your girl child, you need to approach a post office or authorized banks with all the necessary documents as described above.

What is the maturity period of the scheme?

The scheme has a maturity period of 21 years from the date of account opening. You can open an account with 250 rupees only.

How many accounts a guardian can open for girl children?

A natural or legal guardian can open accounts for only two girl children. However, if the girls are twin, in that case, he can open a third account.

What are the maximum and minimum deposits allowed under this scheme?

The minimum deposit in a year is 250 rupees. However, you can deposit any amount in multiples of 100 rupees but the total deposit in a year must not be exceeding 150000 rupees.

What if I forget to deposit the minimum amount in a year?

If you have not deposited the minimum amount in any year you can get the account regularized by depositing the minimum amount for the year along with a fee of 50 rupees. You need to be regular in depositing till the completion of fourteen years from the date of opening the account.

How can we deposit money in the SSAS account?

You can deposit in a SSAS account in cash or by cheque or demand draft.

What is the current interest rate on sukanya samriddhi account scheme?

The current interest rate on the sukanya samriddhi account scheme is 8.5% compounded yearly and credited in the account till the account completes fourteen years.

Who is allowed to operate the account?

Parents or legal guardians can operate the account till the girl attains age of 10 years. The girl herself can operate the account once she reaches the age of 10 years. However, the legal guardian or any other person or authority may deposit in the account.

How can we get more information about the scheme?

You can get more information about the scheme at this link.

Is the transfer of account allowed?

Yes, the transfer of the account is allowed to anywhere in India where the girl child on whose name the account is opened shifts.

What are the withdraw rules of SSAS?

The withdrawal is allowed when the girl on whose name the account is in operation attains the age of 18 years. However, the withdrawal is only permissible to meet the financial requirement arising for marriage or education of the girl. The withdrawal limit is fixed to 50% of the balance at the credit of the preceding financial year.

Does the SSAS scheme comes under 80C deduction?

Yes, the scheme is eligible for deductions under the section 80C of income tax. The scheme also falls under EEE( Exempt-Exempt-Exempt) category means there is no tax liability in this scheme.

Is the scheme good to accumulate good corpus?

I don't recommend to put all the money in SSAS account for your girl child. The interest rate which change time to time may not provide you enough capital for the education or marriage of your daughter. However, as a debt product, it is a good investment. 

Have you opened an account under sukanya samriddhi account scheme for your girl child? How was the process of account opening? Please don’t forget to share your experience in comments.

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