What is Sukanya Samriddhi Account
Sukanya Samriddhi Account (SSA) is an investment scheme started by Government of India which can be opened for a girl’s child. The scheme is specially designed for girl’s higher education or marriage needs and can be opened by girl’s parents or legal guardian (in case parents are missing). One can deposit a maximum of Rs 1,50,000 per financial year (Apr – Mar) and the deposit is exempted from income tax under sec 80C. In other words, the amount you deposit can be deducted from your income and if you are in 30% tax bracket, it can save you Rs. 45,000, while some in 20% and 10% bracket can save upto Rs. 30,000 or 15,000 respectively. The interest paid to this account is set for 9.1% for 2014-15 and 9.2% for 2015-16 and this rate will vary every year based on calculation by government. This is very similar to the rates paid in PPF.
So now you know what is SSA, what else is important to know:
Who and where can the Account be opened
This account can only be opened for a girl child who is less than 10 years of age as Jan 2015. The account can only be opened by natural or legal guardian and tax deduction can also be claimed by one of the parents. As this scheme was announced in Jan 2015 if the child turned 10 any time between December 2013 and December 2014 ie. born between Dec 2003 to 2004, you can still open account in her name. If you have more than 2 girls, you can still open the account for only 2 girls. [Read more…] about Sukanya Samriddi Account – Should you Invest ?