Sukanya Samridhi Yojana (Girl Child Prosperity Scheme)

Sukanya Samriddhi Account ( Girl Child Prosperity Account) is a Government of India backed saving scheme targeted at the parents of girl children. The scheme encourages parents to build a fund for the future education and marriage expenses for their female child.[1]

The scheme was launched by Prime Minister Narendra modi on 22 January 2015 as a part of the Beti Bachao, Beti Padhao campaign. The scheme currently provides an interest rate of 8.1% (for October 2017 to December 2017 ) and tax benefits. The account can be opened at any India Post office or branch of authorised commercial banks

The scheme was launched by Prime Minister Narendra Modi on 22 January 2015 in Panipat, Haryana.[4][5] The accounts can be opened at any India Post office or a branch of some authorised commercial banks.[2] Initially, the interest rate was set at 9.1% but later revised to 9.2% in late March 2015 for FY2015-16.[2][3] Interest Rate have been revised for FY 2016-17 to 8.6%.[6] [7]

The account can be opened anytime between the birth of a girl child and the time she attains 10 years age by the parent/guardian. Only one account is allowed per child. Parents can open a maximum of two accounts for each of their children (exception allowed for twins and triplets). The account can be transferred to anywhere in India.[8]

A minimum of ₹250 must be deposited in the account initially. Thereafter, any amount in multiples of Rs 100 can be deposited. However, the maximum deposit limit is ₹150,000. If the minimum deposit of ₹250, (initially which was 1000) is not made in a year, a fine of ₹50 will be put on.[8]

The girl can operate her account after she reaches the age of 10. The account allows 50% withdrawal at the age of 18 for higher education purposes. The account reaches maturity after time period of 21 years from date of opening it. Deposits in the account can be made till the completion of 14 years, from the date of the opening of the account. After this period the account will earn only applicable rate of interest.If the account is not closed, then it will not earn interest at the prevailing rate.[8] If the girl is over 18 and married, normal closure is allowed.[9] [10]

Of time, the interest of SSY will always be greater than that of PPF. For both, the government fixes the interest rate on quarterly basis dependent on the G-sec yields. The interest rate and spread that SSY enjoys over the G-sec rate of similar maturity is 75 basis points in comparison to PPF’s 25. The scheme currently provides an interest rate of 8.1% and EEE tax benefit.