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International Girl Child Day 2022: International Day of the Girl Child is an annual and internationally recognised observance on October 11. On this day, let’s look at the benefits of the Sukanya Samriddhi Yojana (SSY). Although the government raised the interest rates for several small savings schemes starting this month (1 October), the SSY interest rate remained unchanged. SSY will continue to offer 7.6% on accounts. The interest rate on small savings schemes was last revised during the first quarter of 2020-21, when rates were slashed.
The interest rates for small savings schemes are notified on a quarterly basis.
What is Sukanya Samridhi?
Sukanya Samriddhi Yojana is a savings scheme designed to improve the lives of girls in the nation. This scheme that was floated under the Beti Bachao, Beti Padhao initiative, is a good option for parents to invest in their girl child’s future.
A Sukanya Samriddhi Account (SSA) can be opened with a minimum deposit of ₹250 up to a limit of ₹1.50 lakh in a financial year and deposits may be made for a maximum of 15 years after the account is opened.
Tax benefits on SSY
Under section 80C of the Income Tax Act, the interest generated through the Sukanya Samriddhi Account (SSA) is tax-free.
Interest rates on SSY
SSA will continue to give an interest rate of 7.6 per cent per year for the quarter ending December 31, 2022. This interest rate is calculated on an annual basis and is compounded annually. The available balance in the account between the fifth day and the end of the month will be used to determine interest for the month, and interest will be issued to the account at the conclusion of each fiscal year.
A guardian can open account Sukanya Samriddhi account subject to the age eligibility norm. A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different girl children.
Deposits in Sukanya Samriddhi account can be made till the completion of a period of 15 years from the date of opening of the account.
SSY withdrawal rules
Partial withdrawal is allowed after the account holder attains the age of 18 years on the occasion of marriage. The account can be closed after completion of 21 years.
Sukanya Samriddhi account subscribers can make online deposits into the accounts through intra-operable net banking and IPPB saving account.
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