“A daughter is a miracle that never ceases to
be miraculous “. How true these words are that expresses the
feelings of parents gifted with daughters!
Daughters are rightly considered by many parents as the most beautiful
gift God has ever endowed them with. For parents, daughters are happy memories
of past, joyful moments of present and hopes and dreams of future. It is indeed
sheer joy, unbridled happiness to watch your little angel playing swing,
running through yard and eventually grow into young women. As your fairy
spreads her wings to take flight, as she steps out in world to prove her
mettle, she needs your support more than ever. No parent would want to miss the
pride they would get when their daughter would achieve dreams, performs feat of
success with flying colors.
However, the rising cost of higher education
presents a formidable difficulty in way of providing her with the best
opportunities. Often, parents are prepared to do away with all the savings of
their entire life just to avoid their daughter’s teary eyes due to missed
education opportunities. But this is needed no more as Govt. of India in an
earnest effort to support the parents in securing bright future for their girl
child has come out with Sukanya Samridhdhi account scheme.
Sukanya
Samridhdhi scheme has been launched by GOI under the flagship initiative Beti bachao beti padhao. The scheme provides
flexibility along with high interest rate that would ensure that your little
angel would be getting her desired education.
How does it
help?
We know
that in current times providing quality education is the best thing parents can
do for their daughters to empower them. SSA is aimed at providing the much
needed monetary support required for higher education. The SS account can be
opened by a parent for their girl child up to 10th year of
her age with minimum initial deposit of Rs 1000/-. Thereafter, every year
deposits can be made as per the convenience of depositor ranging from mere Rs
1000/- to Rs 1, 50,000. Thus, depositor remains free from any financial burden
due to need to deposit huge amount to keep account active. Not only this, the
interest rate being offered is 9.1 percent! This makes SSA one of the highest
earning saving schemes with unmatched flexibility.
What’s more,
SSA provides the freedom to make deposit of any amount* in 12 installments per
year. This means that if a depositor feels it difficult to deposit Rs 1000/- at
once, one can deposit it in 10 monthly installments of Rs 100/-.
How long one
has to deposit?
Deposits
have to be made every year for continuous fourteen years .The account matures at completion of 21 years from the opening of account.However , the account can be closed and full accrued amount can be withdrawn upon marriage of account holder girl. Thus, even if
an account is opened at the 10th year of age of a girl child ,
and the girl is married at the age of 18,the amount accumulated with
accrued interest is payable at that time. Notice
here that in the case an account remains active for 21 years one has to deposit
only for 14 years and even after that it continues to earn interest for 7 more
years without any deposits.
Why so
long?
“Someone’s
sitting in the shade today because someone’s planted a tree long ago.”
- Renowned investment giant Warren
buffet
To some people, the lock in period of SSA
may seem rigid, not allowing them to withdraw in time of need. While it is true
that various schemes exist in financial market that provides liberty to
withdraw at any time, most of the people will agree that the need to get
immediate financial relief often leaves them with lessened long term investment. Financial wisdom tells us that in order to
reap rich benefits later, one must cut on expenses now. To quote Benjamin Franklin
“Beware of little expenses; A small leak will sink a great ship.” Though SSA scheme discourages distress break
in investment, it recognizes the practical need to withdraw. Hence, a provision
has been provided to withdraw 50 per cent of accrued amount after 18year age of
girl in order to provide for needs of higher education.
What
documents are required to open SSA?
The documents required are:
- Birth
certificate of girl child (account holder)
- Address
proof of depositor (parent of girl child)
- Identity
proof of depositor (parent of girl child)
In
villages, where birth certificate is not readily available, a certificate of
date of birth from head master or a certificate of date of birth from head of
the village is acceptable.
What if one
fails to deposit the minimum amount of Rs 1000/ in a year?
One has to pay the short amount along with the
penalty amount of Rs 50.
How to make
deposits?
Upon
opening of the account, a passbook will be given to the parent of girl child.
Thereafter, deposits can be made in cash, by cheque or through demand draft
along with presentation of passbook.
What to do
when parents/girl moves to another place?
The account can be transferred from one post
office to another post office throughout the India. An application in this
regard has to be submitted at the post office where the account stands.
What are
the income tax benefits?
SSA is a tax free scheme.Amount
deposited in SSA is eligible for tax exemption under Section 80c of Income tax
act.Also, the maturity value is free from income tax. And the advantage doesn't stop here, the interest earned too is tax free!!
