If you’re considering investing in the Sukanya Samriddhi Yojana (SSY) for your daughter’s future, it’s crucial to stay informed about recent changes made by the government.
Here are five significant updates you need to know before making any deposits:
1. Interest Rate Review
The government periodically reviews the interest rate of SSY, usually every quarter. Currently, the scheme offers an annual interest rate of 8.2%, with potential tax exemptions under section 80C.
2. Interest Crediting Change
Previously, interest was credited quarterly; however, the new rule stipulates that the interest will be credited annually, simplifying the process.
3. Account Operation Age
Under the revised rules, daughters are not permitted to operate the SSY account until they reach 18 years of age. Until then, guardians will manage the account.
4. Default Account Management
In the event of not meeting the minimum deposit requirement, the account becomes default. Under the updated rule, interest will still accrue on the deposited amount until maturity if the account remains inactive.
5. Expanded Eligibility for Tax Exemption
While previously only two daughters were eligible for tax exemption under section 80C, the new rule allows for opening an SSY account for a third daughter.
Additionally, if twin daughters are born after the first daughter, accounts can be opened for both twins.
Premature Closure Criteria
In a notable expansion, the SSY account can now be closed prematurely in case of the daughter’s death, change of address, or if the account holder faces a life-threatening illness, ensuring more comprehensive coverage for unforeseen circumstances.
These updates reflect the government’s efforts to enhance the accessibility and flexibility of the Sukanya Samriddhi Yojana, empowering parents to secure their daughters’ financial future more effectively.
