SSY is a small savings deposit scheme initiated by the BJP government at the center of Girl Child, which has struggled across the country. Sukanya Samriddhi Yojana is gaining popularity like wildfire as part of Beti Bachao Beti Padhao campaign. However, many people who are eager to open an account under this scheme have many elements of the scheme which remain blurred.
The benefits of Sukanya Samriddhi Yojana are many to provide a better future to the girl child and parents should not consider the girl child a burden on them. The benefits of SSY are given below.
- The most massive interest rate offered by Sukanya Samriddhi Yojana accounts (currently 8.10% for F.Y. 2017-18) compared to other small savings deposit schemes like PPF;
- Income Tax Act 1961 U / S 80 (c) under Sukanya Samriddhi Yojana was Rs. 150000 / – per year is entirely tax-free and belongs to EEE category i.e., exempted.
- Only girl child and no one can withdraw maturity benefits. Thus women become financially autonomous after the age of 21;
- Money cannot be withdrawn before the girl reaches the age of 18 with a mandatory lock-in period, which will result in a significant amount being received at maturity;
- Parents do not need to be a purposeful investment avenue to worry more about higher education and girls’ marriage;
- Running this social security scheme for girls across India is very simple;
Shortcomings/disadvantages of Sukanya Samriddhi Yojana:
- Every new monetary service has some drawbacks, so does the Sukanya Samriddhi Yojana.
- The lock-in period is extensive, i.e., 21 years. It implies that parents are unable to withdraw any amount due to any reason before maturity;
- The interest rate of Sukanya Samriddhi Yojana is not fixed and hence fixed every quarter. It is the biggest drawback of this scheme. The interest rate decreases significantly every day;
- No initial withdrawal is allowed. It means that you cannot withdraw money to this account under an unprecedented scenario;
- In case of partial withdrawal, when the girl child reaches the age of 18, only 50% of the accumulated body in the preceding financial year can be withdrawn for higher education and marriage of the girl;
- Sukanya Samriddhi Yojana cannot be contributed through online mode in the Internet era. Parents are required to deposit contributions over the counter at the post office or designated banks;
Who can open and manage an account under the Sukanya Samriddhi Yojana scheme?
Under this scheme, an account can only be opened by the biological parent of the girl child or the guardian of the legally allotted child if the parents are not alive. A girl cannot open an account on her own. Parents or legal guardians can handle the accounting process on behalf of girls as long as they want. However, when the girl turns 18, she has the right to operate the account and her parents or legal guardian will not need to intervene unless she likes to interfere with them.