TLDR;
This video provides a detailed overview of the Sukanya Samriddhi Yojana (SSY), a government scheme designed to secure the financial future of daughters in India. It explains the scheme's eligibility, investment limits, interest rates, maturity details, and tax benefits. The video also highlights the importance of having health and term insurance alongside the SSY for comprehensive financial security.
- SSY is a government-backed scheme with guaranteed returns for a daughter's education and marriage.
- It offers tax benefits under Section 80C of the Income Tax Act.
- The video stresses the importance of additional insurance coverage due to the scheme's lack of insurance benefits.
Introduction to Sukanya Samriddhi Yojana (SSY) [0:00]
The Sukanya Samriddhi Yojana (SSY) is a government scheme launched in 2015 as part of the "Beti Bachao, Beti Padhao" campaign. It is designed to help parents build a substantial fund for their daughter's education and marriage. Starting with a minimum investment of just ₹250, one can potentially accumulate up to ₹70 lakh by the time the account matures. The video aims to explain the scheme's features, benefits, and how to make the most of it.
Investment Limits and Duration [1:10]
The minimum deposit required per year is ₹250, while the maximum is ₹1.5 lakh. Deposits need to be made for only 14 years, after which the account continues to accrue interest until maturity. The frequency of deposits is flexible, allowing for monthly, quarterly, or lump sum contributions, as long as it falls within the annual limit. Failure to deposit results in a minimal penalty of ₹50 per year.
Interest Rate and Risk Factors [2:16]
The SSY offers a guaranteed interest rate of 8.2% per annum, which is a major attraction of the scheme. This rate is regulated and revised by the Reserve Bank of India (RBI). Unlike market-linked investments, the SSY is government-backed, making it a safe and stable investment option with zero risk.
Maturity and Calculation Examples [3:03]
The scheme matures 21 years from the account opening date, with deposits required only for the first 14 years. The remaining seven years allow the interest to accumulate. For instance, investing ₹20,000 annually for 14 years results in a maturity amount of approximately ₹9.2 lakh, while investing the maximum of ₹1.5 lakh per year can yield around ₹79 lakh upon maturity. The video provides various scenarios, illustrating how different monthly contributions can grow over time, highlighting the power of compound interest.
Death Case Scenarios [5:37]
In the unfortunate event of the death of the guardian (father or mother), the account can either be continued or withdrawn, subject to providing a death certificate. If the girl child passes away, the account is closed, and the funds are transferred to her legal guardian. However, the SSY does not offer any insurance cover, which is a significant drawback.
Importance of Health and Term Insurance [6:02]
Given the lack of insurance coverage in the SSY, the video strongly recommends purchasing health and term insurance. Health insurance protects against medical emergencies, covering hospital bills and offering benefits like cashless treatment and annual check-ups. Term insurance ensures that the family remains financially secure in the event of the policyholder's death, covering expenses like education and EMIs. The video provides a link in the description for viewers to compare and purchase the best insurance plans with potential discounts.
Withdrawal Rules After Girl Turns 18 [9:16]
Once the girl child turns 18, she can withdraw money from the account without the guardian's permission, as it is her legal right. The video prompts viewers to share their opinions on whether this provision is appropriate.
Tax Benefits of SSY [9:47]
The Sukanya Samriddhi Yojana falls under the EEE (Exempt, Exempt, Exempt) category, offering significant tax benefits. Investments up to ₹1.5 lakh are eligible for deduction under Section 80C of the Income Tax Act. The interest earned is tax-free, and the maturity amount is also entirely exempt from tax. Investing in SSY not only secures a daughter's future but also provides substantial tax savings.
Account Opening Process and Eligibility [11:18]
Opening an SSY account is as simple as opening a bank account. It can be done at any bank or post office, where a passbook is provided upon activation. The eligibility criteria include the girl child being an Indian citizen aged between one day and 10 years. A family can have a maximum of two accounts, except in the case of twins, where three accounts are allowed. Required documents include the girl child's birth certificate and the guardian's ID proof.
Conclusion and Recap [12:11]
The video concludes by summarising the key points of the Sukanya Samriddhi Yojana, including its launch year (2015), age limit (one day to 10 years), minimum and maximum deposit amounts (₹250 to ₹1.5 lakh per year), deposit duration (14 years), scheme duration (21 years), and interest rate (8.2% per annum). It reiterates the importance of securing a daughter's future and encourages viewers to open an SSY account if they have not already done so, while also emphasising the necessity of health and term insurance for comprehensive financial protection.
