If you have a daughter, you can make saving for her future a little easier owing to the Sukanya Samriddhi Yojana (SSY), a government-backed savings system designed specifically for females. Continue reading to learn more about the scheme's advantages.
How it works is as follows:
The SSY Account can be opened by the parent or guardian at any time after the female child's birth until she reaches the age of ten. The account holder and beneficiary of the SSY Account will be your daughter. She must be an Indian citizen and a resident of India when the account is opened, and she must stay so until the account matures or is closed, whichever comes first. If a resident's status switches to NRI after the account is opened, the account can be kept open until maturity or terminated early.
Per girl child, only one SSY Account is permitted. The SSY Account can only be opened by a parent or guardian for a maximum of two girl children. On submission of an affidavit by the guardian, more than two accounts may be opened in a family if twin girls are born in the first or second order of birth, or both. The birth of such multiple girl children in the first two orders of birth in a family must be supported by birth certificates of twins/triplets. The Girl Child's birth certificate, as well as the Guardian's KYC credentials, are required.
Keep in mind the following:
From the date of account opening, the SSY Account has a 21-year term.
In a given year, you can make any amount of deposits into the SSY Account.
In a financial year, the least contribution is Rs 250 and the maximum contribution is Rs 1.50 lakh.
The SSY Account will become dormant if the minimum annual contributions are not made.
You must pay a penalty of Rs 50 per default year to reactivate such an account.
If the girl child is over the age of ten, the account can be handled by the parent or the girl child themselves.
The SSY Account must be controlled by the girl kid once she reaches the age of eighteen.
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