#11 - Sukanya Samriddhi Yojana For Girl Child | SSY Account | Eligibility | Benefits | FinCalC TV [VIDEO]

Sukanya Samriddhi Yojana is a government-backed savings scheme as part of the “Beti Bachao, Beti Padhao Yojana” for the benefit of the girl child. 
It can be opened by the parents of a girl child below the age of 10 years. 
Parents can open up to two such accounts for girls, and these accounts have tenure of 21 years or until the girl child marries after the age of 18 years. 
The interest rate of Sukanya Samriddhi Yojana for July to September 2019 was 8.4% 
The interest rate on this scheme is fixed by the government and reviewed every quarter. 

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Eligibility criteria for opening Sukanya Samriddhi Yojana Account: 
- Sukanya Samriddhi account can be opened only in the name of girl child by her parents or legal guardians. 
- The girl child has to be below the age of 10 at the time of account opening. 
- Multiple Sukanya Samridhhi accounts cannot be opened for a single girl child. 
- Only two SSY accounts are allowed for a family i.e. one for each girl child. 
- You can invest in this scheme through your nearby post office or designated branches of participating public and private banks. 

BENEFITS of opening a SSY Account: 
- It provides tax deduction benefits under Section 80C up to Rs. 1.5 lakh annually 
- There are flexible investment option with minimum deposit of Rs. 250 in a year and a max. of Rs. 1.5 lakh per year 
- The returns are guaranteed since the scheme is backed by government of India 
- Higher fixed rate of return as compared to other government-backed tax saving schemes such as PPF. 
- Long term investment hence provides the benefit of compounding 
- Can be freely transferred from one part of the country to another in case of transfer of parent/guardian operating the Sukanya Samriddhi Account 

CALCULATION EXAMPLE: 
Let's assume Annual investments of Rs. 1 lakh The Investment Period is of 15 years. This makes the Total amount invested at the end of 15 years = Rs. 15 lakh Assuming 8% interest rate per annum for the entire 15 years, the value of Sukanya Samriddhi Investments at the end of 15 years will be 28.32 Lakhs. 
Thus you can almost double your money by investing in this guaranteed return investment in the long term. 
From the taxation perspective, SSY investments are designated as an Exempt, Exempt, Exempt investment. This means that the principal invested, the interest earned as well as the maturity amount are tax free. But a maximum of only Rs. 1.5 Lakhs can be claimed under section 80C every year for tax saving purpose. 
The girl can also avail partial withdrawal facility, which is not more than 50% of the balance, after attaining the age of 18 years for higher education expenses. 

More Benefits:
- Premature closure on attaining the age of 18 years for the purpose of marriage expenses 
- Premature closure is also allowed on Untimely death of the account holder and Inability to continue the account 
- As far as Loan is concerned, Under existing rules, there is no option of availing a loan on the basis of the balance available in a Sukanya Samriddhi Account. 
- This benefit of availing Loan is currently available in case of another government tax saving scheme, that is, Public Provident Fund (PPF) account which offers the benefit of loan against PPF account from the third year of subscription onwards.
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