SSY-Sukanya Samriddhi Yojana- Features-Drawback-Benefits of scheme for the real India daughter

GOI started a scheme for girl child in India, in this article you under stands its details like. 
  • Whats is Sukanya Samriddhi Yojana?
  • How to open account under SSY?
  • Why i open account in SSY?
  • What are the features of Sukanya Samriddhi Yojana?
  • What are the drawbacks and merits ?
  • What to choose: PPF or SSY ?

What is Sukanya Samriddhi Yojana (SSY)?


It is small deposit scheme for girl child launched under "Beti Bachao, Beti Padhao" Scheme. 

The scheme offers higher interest rate than PPF. But it is only for girls below age of 10 years with longer lock in period.

Thinking of investing for your little princess in PPF or FD’s for her education or marriage?
This scheme is launched by our PM Modi for Girl child prosperity with the vision to provide expenses to girl child education and marriage. 


The Sukanya Samriddhi Yojana could be a better alternative. This scheme started by govt. this year was already eligible for deduction under Section 80C.
This is a small deposit scheme under 'Beti Bachao Beti Padho' govt. movement.
The Budget has now also made the income from this scheme tax free.
SSY is more attractive by any other options available like PPF or FD, because it offers a higher rate of interest.

Interest rate for this scheme is also linked to government bond yield. 
While for PPF interest rate is 8.7%, SSY offers you 9.1%.
SSY account can be opened in the name of a girl child who is not more than 10 years. (Only for this year govt. allowed accounts to be opened for 11 year old by 1 December 2015.)

How to Open SSY, Sukanya Samriddhi Yojna account?

Account can be opened in any post office or designated branches of PSU banks with minimum balance of Rs. 1000.
The maximum investment is a year is 1.5 lakh and deposits can be made for 14 years.

One parent can open an account for maximum of 2 daughters, but the combined investment cannot exceed 1.5 lakh.

The account matures when the girl turns 21. But you can withdraw 50% of the amount after she is 18 year old or get married.

Why should I invest in this Scheme?

SSY push parents to save for a specific goal like daughter education and marriage.

But yes SSY won’t able to generate very high returns. If a couple starts putting away Rs. 1.5 lakh in the SSY when child is 10 year old. The final account you get will be Rs. 28.89 lakh in 11years.

If the child is 5 year old and then save for 14 years, the investment would grow to Rs. 42.88 lakh by the time she is 19 year old.

If the girl child is born this year then you can open her account and deposits for 14 years. and maturity will 21 year of her age. No deposit for the period of 15 years to 21 years. 

And Yes interest rate is high now, you can’t get this much in future. 
Put your Value check your maturity amount, Click me to see.


Salient features of Sukanya Samriddhi Account :

  • Only one account can be open in the name of a girl child.
  • Account can be open with the minimum deposit of Rs. 1,000 and maximum 1.5 Lakhs per year deposit. 
  • Interest rate for this account is 9.1% compounded annually. 
  • Money deposited under this account is for 14 years.
  • Parents can open this account for maximum 2 girl child. If twins then 3rd allowed.
  • Passbook available for Sukanya Samriddhi Account.


Documents required under SSY Account : 

  • Birth Certification of girl child.
  • Identity Proof
  • Address Proof.  


Drawback of SSY:

  • High lock in Period
  • No clarity on future interest rates for SSY account
  • Scheme doesn't provide online transfer. 
  • Limitation on number of accounts. 


Benefits of SSY: 


  • Higher Interest rates 
  • Payment on maturity to girl child 
  • Transferable anywhere in india 
  • Flexible Deposit- min-1000 max.2.5 lakh 
  • Tax Benefits - Income tax rebate
  • Interest paid even you can't closed account on maturity
  • Girl child also operate this account after age of 10 years. 


Which is best :PPF or SSY? 


Points
SSY
PPF
For whom?
Only for Girls
Anyone
Age limit
Upto 10 years
No age limit
Min.  annual amount Deposit
Rs. 1000
Rs. 500
Max. annual amount Deposit
Rs. 1.5 Lakh
Rs. 1.5 Lakh
Rate of Interest
9.1%
8.7%
Maturity
At age of 21
After 15 years


Conclusion 

This is very good scheme launched by GOI with good motto for long time Vision.
This is why every expert advice you to save for your daughter in risk free investment. You can also choose from others options available along with SSY scheme.
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