Many small savings schemes are being run by the central government. These schemes are very useful for people who want to build a good corpus for future by investing less money. If you also want to invest for your daughter’s marriage or higher education, investing in Sukanya Samriddhi Yojana (SSY) may prove better for you.
In this, the new interest rates are better than bank FDs. SSY scheme offers better returns than other small savings schemes. It pays 7.6 percent interest per annum. This is a purely government scheme. The government has made many important changes in this scheme.
The third daughter’s account will also be opened
Till now only accounts of two daughters were eligible for tax exemption under 80C under Sukanya Yojana. There was no tax exemption in case of third daughter. But now the rules have been changed. If one daughter is followed by two twin daughters, accounts can be opened for both of them also. That means money can be deposited in the name of three daughters simultaneously in Sukanya Samriddhi Yojana. You can claim tax exemption on it.
You can deposit a minimum of Rs 250 and a maximum of Rs 1.5 lakh annually in the account. If the minimum amount is not deposited, the account defaults. Under the new rules, if the account is not reactivated, the amount deposited in the account will continue to earn interest at the applicable rate till maturity. Note that this was not the case before
Account Operating Rules
Daughter of Sukanya Samriddhi Yojana account holders can operate her account after completing 10 years of age. But now the daughter will get the right of operation only after the age of 18 years. Earlier the daughter’s guardian can operate this account.
Changes to Account Closure Terms
Sukanya Samriddhi Yojana account can be closed first on death of daughter or change of address. But now the account can be closed even if the account holder gets terminal illness. On the other hand, even if the guardian passes away, the account can be closed before maturity.