Thread by @myfinology

All you need to know about Sukanya Samriddhi Yojana 👧

• Min Max Deposit
• Interest Rate
• Tax Benefits
• Eligibility Criteria
• Maturity Period
• Payment Period
• Withdrawals
• Loan Facility

-- A Thread 🧵 --

▣ SSY was created to provide girl child 👨‍👩‍👧‍👧 with a
sound financial future. It’s a part of "Beti Bachao,
Beti Padhao Yojana". It comes with an interest rate
of 7.6% and tax benefits under 80C of Income-tax
Act, 1961.

#investingtips #personalfinance

▣ The account can be opened by the parent or legal guardian in the name of a girl child from the birth till she is 10 and max 2 accounts can be opened.

❌If more than two daughters the 3rd account can not be opened.

#investors

*Exception: The 3rd account can be opened in the event of birth of twin girls, as 2nd birth or if the 1st birth itself results in three girl children.

▣ The minimum deposit amount is Rs 250 per FY and
the maximum amount is Rs 1,50,000 per FY.

▣ SSY account can be opened with Bank or Post office whomsoever you find suitable.

Documents 📝:

• Birth certificate of the girl child
• Photo ID of applicant parent or guardian
• Address proof
• Other KYC proofs like PAN, Voter ID.

▣ If the account holder fails to deposit ⚠️

A penalty of Rs 50 will be levied per year of default on the minimum deposit amount of Rs. 250 in a financial year. The account can be regularized post payment of penalty.

▣ The tenure of the SSY account lasts until 21 years from the date of opening the account; or till the account holder (gild child) gets married, whichever is earlier.

While, the payment period for SSY accounts is 15 years.

▣ No withdrawals are permitted till the girl reaches the age of 18. After 18 years of age, partial withdrawal up to 50% of the account balance is allowed, to meet education expenses 👩‍🎓 or marriage expenses 👰‍♀️

Account can be closed before maturity in following circumstances:

• Death of account holder
• If Central Govt is satisfied that continuation of the
a/c is causing undue hardship
• If the account holder attains NRI/PIO status any time
prior to the maturity

Interest on the deposits made will be calculated on lowest balance b/w 5th & end of the month.

Thus, to get higher interest amt, the depositor should ensure that deposit in the a/c is credited before 5th of the month.

And there is NO loan facility available in SSY.

• Minimum Deposit - Rs.250
• Maximum Deposit - Rs.1.5 lakh
• Eligibility - Girl child below age of 10 yrs
• Maturity Period - 21 yrs
• Payment Period - 15 yrs
• Int Rate - 7.6%
• Tax Benefits - EEE benefit
• Premature Withdrawal - Upon girl child attains 18yr

SSY is a decent form of investment for your daughter's future but it's not enough to only invest in SSY.

Educational inflation in India is much higher than regular inflation and sometimes return on regular debt instrument like SSY cannot beat this inflation.

Therefore, you need to invest a portion of your savings in equity mutual funds as well that can help you to beat inflation in the long term.

To know our best picks for a diversified equity mutual fund portfolio, Visit Recipe.Finology.in