Every parent dreams of securing a bright future for their children and ensuring there are no financial worries when it comes to crucial milestones such as education and marriage. In particular, many parents in India are deeply concerned about the long-term financial security of their daughters. However, by making informed decisions early, you can help safeguard your child’s future.
One such opportunity is the Sukanya Samriddhi Yojana, a government-backed savings scheme specifically designed to provide financial support for the education and marriage of girl children. The Central Government has recently brought some good news for middle-class families by keeping interest rates on small savings schemes stable, contrary to expectations that they might fall. This comes as a relief, as any drop in rates would also reduce earnings.
Launched in 2015, the Sukanya Samriddhi Yojana is available for girl children below the age of 10, and accounts can be opened by parents or legal guardians. The current interest rate under the scheme stands at 8.2%, making it one of the most attractive small savings options available today.
The scheme allows for a minimum annual deposit of Rs 250 and a maximum of Rs 1.5 lakh per year. Only one account can be opened per girl child, and if anyone other than the parents or legal guardian opens an additional account, it will be closed. It’s important for families to be fully aware of this rule.
Accounts can be opened at post offices, authorised government banks, and select private banks, including top institutions like SBI, HDFC Bank, and ICICI Bank, offering flexibility and ease of access for account holders.
The scheme has a maturity period of 21 years from the date of account opening. Withdrawals can be made earlier for higher education expenses once the girl reaches the age of 18. If she gets married after turning 18, the account can also be closed prematurely.
In addition to securing a girl’s future, the scheme also offers significant tax benefits. Deposits are eligible for deduction under Section 80C of the Income Tax Act, and the interest earned is entirely tax-free under Section 10, providing financial relief for families over time.
To open an account, the guardian must fill in Form 1 and provide the girl’s birth certificate. The Aadhaar card and PAN card of the guardian are also required as proof of identity and address. Each family may open a maximum of two accounts, one for each girl child. However, if the second birth results in twin girls, accounts may be opened for both. If the first birth is a twin, no further accounts are allowed for additional daughters. This condition should be clearly understood before proceeding.