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The Government Scheme for the Girl Child – All Your Questions Answered!

As a part of Beti Bachao Beti Padhao Campaign, the Government launched a small saving scheme with the intention of encouraging people to save for the girl child’s education and also for her subsequent marriage.

The scheme called “Sukanya Samiriddhi Yojana” (SSY) is aimed at people who often look for micro or small investment schemes that offer high returns at low market risk.

SSJ is aimed to tackle two major problems girls face in India – Marriage and Education. Through the scheme, people are encouraged to build a fund for a proper education and stress-free marriage of their girl child in their family.

Let’s understand SSJ in detail. These 14 Q&As have all the information you need to know about SSJ.

    1. Who can open the SSJ account?

Parents and legal guardian of the girl child (less than 10 years of age) can open the SSJ account.

    1. Who is the beneficiary of the SSJ account?

Any girl child who is a resident of India at the time of opening the account and during closure of the account is the beneficiary of the account.

    1. Who is authorized to make deposits and manage the account?

The guardian or parent of the girl child can deposit and manage the account until she reaches 18 years of age. The account then has to be mandatorily managed by the girl herself.

    1. How many accounts can be opened in a family?

One account per girl child. Maximum of two accounts, if there are two girls in the family (one for each girl).

    1. Where can an SSJ account be opened?

At any post office or an authorized branch of commercial banks.

    1. What documents are required to open the account?

Here’s the list of documents:

    • Identity and residential proof of the parent/guardian
    • Birth certificate of the girl child
    • Medical certificate for proof of birth
    • Any other documents requested by the bank or the post office
    1. When can an SSJ account be opened?

Anytime before she turns 10 years of age.

    1. What’s the minimum and maximum amount that can be deposited in the account and for how long?

Minimum of Rs. 250 and maximum of Rs. 1,50,000 every financial year for the next 21 years.

    1. What’s the mode of deposit?

Cash, online transfer, demand draft or cheque.

    1. What’s the interest on the deposit?

The current rate of interest is 8.5% (Revised for the 3rd quarter, from 1 October 2018 to 31 December 2018).

    1. When does the account mature?

21 years after the date of opening of the account.

    1. On what conditions can the account be prematurely closed?

Premature closure is allowed in these situations

    • If the girl is above 18 years and intends to get married.
    • Death of the girl child.
    • If there is a change in the status of the girl child. For example, she has changed from resident Indian to non-resident Indian.
    1. When can the money be withdrawn from the account?

50% of the total amount can be withdrawn once the child is above 18 years if she needs the funds for marriage or higher education.

    1. Are there any tax benefits provided by SSJ?

Yes. To encourage investments in SSJ, the government has provided some tax benefits:

    • Eligible for deduction under Section 80C
    • The interest accrued is exempted from tax
    • The proceeds received upon maturity is also tax-free

Here’s a quick glance through of the most significant features of SSJ account

Interest rate 8.50% (from 1 October 2018 to 31st December 2018)
Min. annual deposit Rs. 250 (last revised on 23rd July 2018)
Max. annual deposit Rs. 1,50,000
Number of accounts granted per guardian One account per girl child. Max. of two girls in one family.
Premature withdrawal 50% withdrawal allowed after the girl child is 18 years old.
Account closure After the girl child is 21 years of age.

Not only the government, but quite a few private banks and financial institutions have understood the importance of girl child prosperity in India. This realization has prompted them to introduce marriage loans, personal loans and other schemes/loans, which are not only beneficial for the girls in the family but also help reduce the stress the parents go through.

If you are looking for a marriage loan, apply for a personal loan for marriage with MoneyTap. Download the app now and get a personal credit line approved from which you can borrow funds for your daughter or sister when needed, for any expenses they might have.

Shiv Nanda

Shiv Nanda

Shiv Nanda is a financial analyst at MoneyTap who loves to write on various financial topics online. He also advises people on financial planning, investment choices and budgeting skills, and helps them make their financial lives better.

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