Sukanya Samriddhi Yojana (SSY) scheme was announced by our Prime Minister Shri. Narendra Modi as part of the Beti Bachao Beti Padhao campaign. The benefits under Sukanya Samriddhi Yojana scheme are very similar to PPF and therefore this too tops my list of risk-free investment avenues.
History of the scheme since its launch in January 2015 can be found in the link below.
There have been a few changes made to the Sukanya Samriddhi Yojana scheme since it was launched.
Key Features of the Sukanya Samriddhi Yojana Scheme
- Account can be opened only in the name of a girl child
- Maximum age of the child can be 10 years
- Only one account can be opened in the name of one girl child
- Account can be opened in any of the authorised branches of Post Office / Bank
- Account can be shifted from one branch to another anywhere in India on providing requisite proof of residence
- Deposits can be made for 15 years from the date of opening of account
- One withdrawal up to 50% of the available balance is allowed once she reaches 18 years of age
- Account matures at the end of 21 years from the date of opening of account or at the time of marraige of the account holder (provided she is above 18 years)
- Minimum deposit per annum is Rs. 250 and maximum is Rs. 1,50,000
- Interest is fixed by the government at regular intervals (just like PPF)
- Interest is calculated on yearly compounded basis and credited to the acoount
- Yearly contributions to the account are eligible for tax benefits under Sec 80
- Withdrawal of money on maturity is also exempt from tax making it very similar to PPF scheme
In summary, the Sukanya Samriddhi Yojana scheme is a nice risk-free investment avenue in order to save for the future of your kid, be it marraige or higher education. Sadly boys are not eligible. But nothing stops a parent from opening a PPF in the name of a boy child !!
Please find below my article on the features of a PPF account and its benefits.