What is SSY? How to withdraw money from Sukanya Samridhi Yojana?

What is The Sukanya Samriddhi Yojana (SSY)?

The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme in India that was launched as part of the "Beti Bachao, Beti Padhao" campaign. It is designed to encourage parents or legal guardians to save for the future financial needs of their girl child, primarily focusing on expenses related to education and marriage.

Here are some key features of the Sukanya Samriddhi Yojana:

Eligibility: The SSY account can be opened for a girl child below the age of 10 years by her parents or legal guardians.

Account Opening: Parents or guardians can open a Sukanya Samriddhi Account at designated public and private sector banks or post offices. They need to provide the girl child's birth certificate as proof of age, along with KYC(Know Your Customer) documents.

1. Deposits:

• The minimum initial deposit to open the account is Rs. 250.
• Subsequent deposits can be made in multiples of Rs. 100.
• The maximum annual deposit allowed is Rs. 1.5 lakh.
• Deposits can be made for a total of 15 years from the date of opening the account.
2. Interest Rate: The interest rate on Sukanya Samriddhi Yojana accounts is determined by the government and is subject to change. It is usually higher than the interest rates offered by regular savings accounts. The interest is compounded annually and credited to the account.

3. Maturity and Withdrawals:

• The account matures after 21 years from the date of opening or when the girl child gets married, whichever is earlier.
• Partial withdrawals are allowed after the girl child attains the age of 18, and the withdrawal amount is meant for her education and marriage expenses.
4. How to withdraw Money from SSY watch video for more information.
5. Tax Benefits:
6. Contributions made to the Sukanya Samriddhi Yojana are eligible for tax deductions under Section 80C of the Income Tax Act. The interest earned and the maturity amount are also tax-free.
7. Account Operation:
8. Initially, the account can be operated by the parent or guardian on behalf of the girl child. After she turns 10, the girl child can operate the account herself.
9. Account Transfer:
10. In case of the relocation of the guardian, the SSY account can be transferred to another post office or bank.
11. Account Extension:
12. After maturity, the account can be extended for a further period of five years, with or without additional contributions.
13. The Sukanya Samriddhi Yojana is a valuable savings scheme that aims to secure the financial future of girl children in India and promote their education and welfare. It provides an attractive interest rate, tax benefits, and a structured way to accumulate funds for their significant life events. However, it's important to stay informed about the latest rules and conditions of the scheme, as they may be subject to changes by the government.