What is Sukanya Samriddhi Yojana (SSY)?
The Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme for the benefit of the girl child. It offers one of the highest interest rates among small savings schemes and comes with tax benefits under Section 80C.
Formula Used
Interest = Balance x (Interest Rate / 100) New Balance = Previous Balance + Yearly Investment + Interest
Benefits
- High interest rates compared to bank FDs
- Tax deduction under 80C up to Rs. 1.5 lakh/year
- Interest earned is tax-free
- Helps create a strong financial base for the girl child
Frequently Asked Questions (FAQs)
Who can open an SSY account?
Parents or legal guardians of a girl child below 10 years of age can open the account.
What is the minimum and maximum investment?
Minimum Rs. 250 and maximum Rs. 1.5 lakh per year.
Is the SSY account transferable?
Yes, it can be transferred across India if the girl moves to a new city.
What are the tax benefits of SSY?
Investments are eligible for deduction under Section 80C and interest earned is completely tax-free.