Sukanya Samriddhi Account (SSA)

Context- Investors in the well-known small savings programs Public Provident Fund (PPF) and Sukanya Samriddhi Account (SSA), whose rates have not been raised since January 2019, are unlikely to receive higher returns anytime soon.

Sukanya Samriddhi Scheme

• The “Sukanya Samriddhi Yojna” is a small deposit program for girls that was launched as part of the “Beti Bachao Beti Padhao” campaign. 
• It promises to offer a competitive interest rate as well as a deduction from income tax.

Significances

• Deposit interest rate: 8.40% as of October 1, 2019) rounded annually, with the option to have monthly interest payouts calculated in completed thousands based on the balance.
• The scheme has been granted Triple exempt benefits in accordance with section 80C of the IT Act of 1961, which means that the amount invested, the amount earned as interest, and the amount withdrawn will not be subject to taxation.

Eligibility

• Deposits can be opened on behalf of up to two daughters under the age of 10 by parents or legal guardians, including adopted girl children.
• Three girls, whether twins are born as a result of the second birth or the first birth itself.
• A child who is a girl can only have one account.
• A minimum of Rs. 250 for the initial deposit, followed by a multiple of Rs. 150 and a maximum of Rs. 150,000 per fiscal year.
• The maximum amount that can be deposited is fifteen years from the account’s opening date.
• Upon the account holder’s marriage or 21 years after the account’s opening, whichever comes first, the account will mature.

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