Sukanya Samriddhi Yojana: A Closer Look

Abstract

Savings are paramount in personal finance and economic stability serving as a cornerstone for financial security, goal achievement, and long-term prosperity. By cultivating a habit of saving, individuals can establish a safety net to navigate through emergencies, pursue aspirations such as home ownership or entrepreneurship, and secure a comfortable retirement. Moreover, savings enable individuals to reduce debt burdens, capitalize on investment opportunities, and counteract the erosive effects of inflation, thereby fostering financial independence and resilience. Additionally, accumulating savings empowers individuals to leave a legacy of generational wealth, ensuring the financial well-being of future generations. In essence, savings not only provide a buffer against unforeseen circumstances but also pave the way for realizing dreams, seizing opportunities, and building a brighter future. To promote the savings among the people, the government through banks and post offices offers various savings schemes including fixed deposits, recurring deposits, savings accounts, and government-backed schemes like Public Provident Fund (PPF), National Savings Certificate (NSC), and Kisan Vikas Patra (KVP). The Sukanya Samriddhi Yojana (SSY) stands out among various savings schemes due to its focus on securing the financial future of the girl child in India. The scheme allows parents or guardians to open an account for their girl child below the age of 10, offering a competitive interest rate and tax benefits. Contributions to the account can be made until the child reaches the age of 15, with partial withdrawals allowed for specific purposes such as education and marriage expenses. By keeping all these in mind, this research paper is an attempt to discuss about the features, benefits, eligibility and trend and growth of SSY in terms of Account opening and amount deposited. The trend and growth of SSY has been analysed for a period of 9 years from 2014-15 to 2022-23 by using Compound growth rate technique. The result revealed that there is a positive trend in SSY in terms of number of accounts opened and amount invested.