Selvamagal Scheme: Interest Rate Calculator, Benefit and Limit of Deposit

The Selvamagal scheme is the most popular savings initiative for women. The benefits and bonuses that come with this plan are the most crucial reason for this. Saving for women is especially crucial on International Women’s Day. Saving for the future is critical for all women, whether they work or stay at home. Many people, especially those who desire to save for female children, will undoubtedly contribute if they are aware of this program. If you want to know more details about the Selvamagal scheme such as eligibility criteria, benefits and other important details, then keep reading this article. We have provided all the important details here.

Overview of Selvamagal Scheme

Child marriages and high dropout rates among girls have been a problem in India from time immemorial. This is mainly due to the financial burden that families of female children cannot bear, and they find it simpler to pass them off to another family, robbing them of their right to an education and the choice to choose what they want. The government has launched the Selvamagal Scheme to help lessen the financial burden for families with a girl child.  It is a Government of India small deposit initiative designed specifically for a family’s girl child. These deposits are intended to cover the girl child’s future education or marriage expenditures, providing her with financial independence.

Also Check: Tamil Nadu Marriage Assistance Scheme 

The objective of Selvamagal Scheme

The most important objective of the Selvamagal Scheme is to provide financial assistance to the girl child and women in Tamil Nadu.  Any girl child who has been an Indian resident throughout the account’s inception till its maturity is eligible. Deposits should be made into the account for at least 15 years, and the account matures when the child reaches the age of 21. The account will be managed by the parent/guardian until the girl child reaches the age of 18, at which point the child can take over the account herself. This scheme allows for a minimum deposit of Rs.1000 and a maximum amount of Rs.1,50,000. In this way the girl children will have a safe and secure future with this scheme.

Selvamagal scheme interest rate

The Selvamagal scheme offers a higher rate of return than any other Savings plan that offers financial security and assistance to girls. The government declares annual changes in interest rates, and the interest on investments is compounded yearly. Because of the compounding process, the program’s assets will grow exponentially upon maturity. Interest rates peaked at 8.5% and have since decreased to 7.6%, where they have remained since April 2020, ignoring inflation. This scheme has been mainly launched for the ease and the financial independence of girl children. With the help of this scheme, the female children can live the happy life that they deserve.

Key highlights of Selvamagal Scheme

Eligibility criteria

• An SS account can only be opened by a girl child’s parents or legal guardians.
• The girl child must open the account when she is younger than ten years old.
• Under no circumstances may a girl kid open more than one account.
• A household may only have two SS accounts, one for each girl kid.
• Note: In certain unique circumstances, more than two girls may open a Sukanya Samriddhi Account. These circumstances include:
• A third account may be formed if a girl child is born before twin or triplet girls are born, or if triplets are born first.
• A third SS account cannot be opened for a girl born after the birth of twin or triplet girls.

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Benefits of the Selvamagal scheme

• Offering investors, a variety of advantages, the Selvamagal scheme was created as a part of the Beti Bachao, Beti Padhao Yojana project. Following are some of the main advantages of the  Selvamagal scheme
• High-Interest Rate: Compared to other government-backed tax saving plans like PPF, SSY offers a greater fixed rate of return (currently 8% annually for Q3 FY 2023–2024).
• Guaranteed Returns: SS offers guaranteed returns because it is a government-backed program.
• Tax Benefit: Up to Rs. 1.5 lakh in annual tax deductions under Section 80C are offered by SS.
• Flexible Investment: An annual deposit of up to Rs. 1.5 lakh can be made, with a minimum of Rs. 250. This guarantees that investors of all financial backgrounds can participate in the SSY plan.
• Benefit of Compounding: The Selvamagal Scheme, which offers the benefit of annual compounding, is an excellent long-term investment strategy. Hence, over time, even modest investments will yield larger returns.
• Convenient Transfer: If a parent or guardian managing a SS Account relocates, they can easily transfer their SSY account from one location in the nation to another (bank or post office).

Also Check: Tamil Nadu Marriage Gold Scheme

The maturity period of the Selvamagal Scheme

• The Selvamagal scheme is available till the girl kid is 21 years old or until she marries after turning 18 years old.
• Contributions are only required during a 15-year period. After that, even if there are no deposits made into the SSY account, interest will still be earned until it matures.

Selvamagal scheme limit of deposit

• The Selvamagal scheme has a minimum annual contribution of Rs. 250 and a maximum contribution of Rs. 1.5 Lakh every financial year.
• For a maximum of 15 years after the account starting date, you must invest at least the minimum amount annually.
• The account will then keep earning interest until it matures.

Tax Benefits under Selvamagal scheme

• SS investments are classified as EEE (Exempt, Exempt, Exempt) investments for tax purposes.
• This implies that there are no taxes on the invested capital, interest, or maturity amount.
• The current taxation regulations provide for an annual tax deduction of up to Rs 1.5 lakh on the principal amount invested under Section 80C of the Income Tax Act, 1961.

Required documents

• Date and Cheque/DD Number (used to make a first deposit)
• Date of the girl child’s birth
• Details from the primary account holder’s birth certificate, such as the certificate number and issue date.
• Parent/Guardian’s ID details (driver’s license, Aadhaar, etc.)
• Current and Permanent Address (as listed on the parent or guardian’s ID papers)
• Information about any more KYC documents (such as a voter ID card or PAN)

How to Apply for Selvamagal Scheme Tamil Nadu

The primary fields found in the SS Application Form that you can download from the official site are as follows:

• The girl child’s name (the primary account holder)
• Name of the joint account holder’s parent or guardian
• The initial deposit sums
• Date and Cheque/DD Number (used to make a first deposit)
• Date of the girl child’s birth
• Details from the primary account holder’s birth certificate, such as the certificate number and issue date
• Parent/Guardian’s ID details (driver’s license, Aadhaar, etc.
• Current and Permanent Address (as listed on the parent or guardian’s ID papers
• Information about any more KYC documents (such as a voter ID card or Pan card
• After completing the aforementioned information, the Selvamagal scheme form must be signed and delivered, together with copies of other relevant documentation, to the account establishing authority (post office or bank branch).

Contact details

• Office of the Commissioner of Small Savings,
• III Floor, LLA Building 735, Anna Salai,
• Chennai – 600 002.044 – 28527486 (O)
• 044 – 28527095
• Fax No: 044 – 28527507, 044 – 28518737

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