Top 6 Benefits of Sukanya Samriddhi Yojana

Looking for a way to save for your girl-child education and marriage expenses? Sukanya Samriddhi Yojana, a deposit scheme launched as part of Prime Minister Narendra Modi's Beti Bachao Beti Padhao campaign in January 2015, has been gaining popularity among single families with girl children. With an objective to secure the future of the girl child, the scheme offers quite a few incentives to start saving, including three attractive tax benefits. 

To learn more about the Sukanya Samriddhi Yojna Account, click here. 

Here's a list of all the essential benefits of opening a Sukanya Samriddhi Yojana account:

1. Need a small amount

You can open an SSY deposit with a minimum deposit of ₹250, which was ₹1,000 before 5th July 2018. The maximum deposit amount can be up to ₹1.5 lakh. Do note that depositing is mandatory until 15 years from the date of account opening, failing which the account will go under 'Account under default.' You can reactivate the account with a fine of ₹50 per year if you defaulted on depositing. The reactivation can happen up to 15 years from account opening.

2. Save for educational expenses

If you are a parent or a guardian of a girl aged less than 10 years, you are eligible to open an SSY Account for no more than two daughters. Here's the big bonus. After the girl turns 18, you can withdraw 50% of the balance to meet educational expenses. However, you need to provide proof of admission.

3. The Triple Tax Benefits

If the above reasons are not good enough, the scheme offers tax benefits you cannot refuse. 

• Deposits up to ₹1.5 lakh are eligible for a deduction under Section 80C of the Income Tax Act.

• The interest earned on the deposit is tax-free. The interest is compounded annually. 

• Even the amount you receive upon maturity is tax-free.

4. Attractive interest rates

The interest rate offered on accounts is 8.2%, one of the highest being provided on small saving schemes.

5. Manageable tenure 

You need not make any deposits after 15 years until the deposit matures, 21 years from the date of account opening. You will continue to accrue the interest on the deposit. 

6. Premature withdrawal

After 5 years of maintenance of the Deposit Account, premature withdrawal will be allowed if the bank or post office finds that maintenance of the account is causing a financial burden on the girl child for medical reasons or the death of a guardian. Premature withdrawal is allowed even in case of the death of a guardian or parent. 

You can also close the account prematurely if the beneficiary is to get married after attaining the legal age of marriage of 18 years. (Intent of marriage should be notified a month before the wedding or up to 3 months after the marriage). 

For any other reason, you can ask for the Account closure, and you will still receive the deposit with interest earned at the rate of interest applicable to post office Savings Bank Accounts.

Opening an HDFC Bank Sukanya Samriddhi Yojana Account is easy. Contact your closest HDFC Bank Branch now!