7 Benefits of Sukanya Samriddhi Account

BY NITIN BHATIA
Sukanya Samriddhi Account
Sukanya Samriddhi Account
Sukanya Samriddhi Account is another welcome step from Govt of India. Honorable Prime Minister of India, Sh. Narendra Modi Ji launched Sukanya Samriddhi Account “A Small Savings Scheme” on 22nd January, 2015. It is part of “Beti Bachao – Beti Padhao” initiative of Government of India (GOI) also known as BBB. Despite sincere efforts from Govt of India, Sex ratio in India is still a grave concern and it shows the backwardness of the country. Its commendable that Govt of India is taking steps to change the mindset of people towards Girl Child. Recently i saw few TV ads of GOI with a message that if we have to make India a Safer Place for Women then we have to fix the gender imbalance. A deep social message delivered in most simplistic way.
Sukanya Samriddhi Account is a step forward in this direction. I was quite disheartened when i observed that when so called “Financial Planners” flooded internet with comparison of Sukanya Samriddhi Account with other financial instruments. Most favorite one is PPF account and everyone is taking lead to compare Sukanya Samriddhi Account with PPF account along with beautiful infographics & loads of financial data. My dear friends forgot to check the objective behind Beti Bachao – Beti Padhao initiative and social message attached to it. The objective behind this initiative is to address the Gender imbalance and create a positive environment in favour of Girl Child.
For Gazette Notification of Sukanya Samriddhi Account and complete scheme details please CLICK HERE

Sukanya Samriddhi Account – Objective

In India, a Girl child is considered as a Financial Burden specially in North India. Being a father of a girl child i can say this with 100% conviction. It may be because of dowry practice or outdated social norms. People show sympathy towards father of Girl Child. Through Sukanya Samriddhi Account, Govt is trying to give a social message that Girl Child is not a financial burden if parents of a Girl child secure their future through proper financial planning. It is quite evident from the scheme document. I will highlight these points in next section. In my opinion be it a Girl Child or a Boy its the responsibility of every parent to secure future of their child financially. Unfortunate part is that to teach this basic lesson, a separate scheme for Girl Child is required. Sukanya Samriddhi Account cannot be considered as an investment option but a savings scheme to secure the future of Girl child. It is not right to compare Sukanya Samriddhi Account with other investment options / savings scheme. There is a purpose behind this scheme and it is being launched with an objective.

Sukanya Samriddhi Account – Benefits

As i mentioned that it is not right to compare Sukanya Samriddhi Account with any other scheme. I am highlighting 7 standalone benefits of Sukanya Samriddhi Account both financial and non-financial for the benefit of my readers
1. Highest Interest Rate among all Small Savings Schemes offered by Govt of India
Sukanya Samriddhi Account will offer interest rate of 9.1% for current financial year i.e. FY 2014-15. It is highest among all Small Savings Schemes. The rate of interest for this scheme will be market linked. Rate of interest will be 75 bps or 0.75% more than average 10 year G-Sec yield for the previous year. The Interest Rate applicable for the Financial Year will be declared every year by the Govt of India. Interest will be compounded yearly i.e. will be credited on yearly basis. It will be accrued on monthly basis on the lowest balance between 5th and last day of the month.