Sukanya Samriddhi Yojana

The Sukanya Samriddhi Yojana (SSY), is a government-backed savings scheme introduced in 2015 as a key initiative within the Beti Bachao, Beti Padhao campaign.. It is designed to help parents secure the financial future of the girl child and save for her education and marriage. The SSY not only promotes financial discipline among parents but also contributes to fostering gender equality by emphasizing the importance of investing in the education and marriage of female children.

This long-term savings scheme allows parents or guardians to make regular deposits, that will mature after a tenure of 21 years or when the girl child gets married post 18 years of age, whichever occurs earlier. This scheme is a good investment initiative for overall welfare of young girls nationwide.

SSY Interest Rate

The government has fixed the rate of interest for Sukanya Samriddhi Yojana at 7.6% per annum. Refer to the table below to know all necessary the details of SSY scheme:

Interest rate 7.6% p.a.
Maturity period 21 year or until marriage
Tax benefit Under section 80C of the Income Tax Act
Age Below the age of 10
Minimum amount ₹250 p.a
Maximum amount ₹1,50,000 p.a.
*Note- The above information is indicative and subject to change. Always check the official website for the most up-to-date information.

Calculation of Sukanya Samriddhi Yojana Interest

Use the SSY calculator to calculate your maturity amount and interest earned in just a few seconds.

Here's an example of how the interest for a Sukanya Samriddhi Yojana (SSY) account would grow over a 21-year tenure with an annual deposit of ₹10,000 and a fixed interest rate of 7.6% p.a.

Years Interest earned Total Amount
1 ₹760 ₹10,760
2 ₹1,618 ₹22,378
3 ₹2,190 ₹34,568
4 ₹2,629 ₹47,197
5 ₹3,590 ₹60,787

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Sukanya Samriddhi Yojana Eligibility

The Sukanya Samriddhi Yojana has very simple eligibility criteria:

  • The scheme is applicable to a girl child below 10 years of age.
  • Only one account is allowed per girl child.
  • Parents or guardians can open the account on behalf of the girl child.

Documents Required For Sukanya Samriddhi Yojana

To invest in the Sukanya Samruddhi scheme, you need to provide some basic documents to verify the girl child’s age, and the identity of the guardian. Check the list of documents that you should keep ready while opening an SSY account.

  • Application form: Sukanya Samriddhi Yojana account opening form.
  • Proof of Birth: Birth certificate of the girl child.
  • Identity proof of guardian: Any government-issued identity card like Aadhaar card, PAN, etc.
  • Address proof of the guardian: Utility bills, Aadhaar card, etc.
  • Photograph: Passport-sized photographs of the girl child and the guardian.
  • Other: Additional KYC documents as per the specific requirements of the institution.

Features & Benefits of Investing SSY

Investing in Sukanya Samriddhi Yojana is a strategic and beneficial way to plan for the financial future of a girl child while enjoying tax advantages and government-backed security. Here are some of the important features and benefits of the scheme:

  • High-Interest Rate: SSY offers a competitive interest rate, typically higher than most savings schemes.
  • Tax Benefits: Contributions are eligible for a deduction under Section 80C of the Income Tax Act. Interest earned and the maturity amount are tax-free.
  • Long Maturity Period: The account has a long maturity period of 21 years from the date of opening or until the girl gets married, whichever is earlier.
  • Compound Interest: The interest is compounded annually, helping the investment to grow significantly over the long term.
  • Government-Backed Scheme: SSY is a government-backed scheme providing a sense of security and reliability.
  • Encourages Girl Child Education: The scheme encourages parents to save for the education and welfare of their girl child, contributing to the overall development of the girl child.
  • Financial Discipline: SSY encourages disciplined savings due to the long-term nature of the investment.

How To Invest in Sukanya Samriddhi Yojana

Investing in Sukanya Samriddhi Samridhhi Yojana is a great way to save and accumulate a good sum of money to secure the future of girl children. This government-backed scheme is easily accessible via the Post Office and several reputed banks.

How To Open the Scheme Online

Some banks and post offices provide online application facilities. You can check with the bank or post office where you wish to open the account.

  • Visit the official website of the bank or post office offering SSY.
  • Fill in the online application form with the required details.
  • Upload the necessary documents.
  • Make the initial deposit online.

How To Open the Scheme Offline

Visit the nearest authorized bank or post office that offers Sukanya Samriddhi Yojana. Obtain the SSY account opening form.

  • Fill in the form with the required details.
  • Attach the necessary documents.
  • Submit the form and make the initial deposit.

Banks Offering SSY

Banks are essential for enrolling, depositing, and managing Sukanya Samriddhi Yojana accounts. To get specific details and requirements for account opening, it's recommended to check with the respective bank branches. The following banks facilitate investment in Sukanya Samridhhi Yojana:

  • State Bank of India
  • Punjab National Bank
  • Union Bank of India
  • ICICI Bank
  • UCO Bank
  • Punjab and Sind Bank
  • Canara Bank
  • Indian Bank
  • Bank of Baroda
  • Indian Overseas Bank
  • Bank of India
  • Bank of Maharashtra
  • Central Bank of India
  • Axis Bank
  • IDBI Bank

SSY Tax Benefit

The Sukanya Samriddhi Yojana (SSY) offers tax benefits to investors, with contributions eligible for a deduction under Section 80C, subject to a maximum limit of Rs. 1.5 lakh. The interest earned and the maturity amount, including principal and interest, are tax-free.

Partial withdrawals for the girl child's education after turning 18 or completing the 10th standard are also tax-free. Additionally, there is no wealth tax on the SSY account balance. However, it's essential to be aware of the scheme's lock-in period and specific conditions for withdrawals.

As tax laws may change, it's advisable to consult with a tax advisor for the latest and accurate information.

Sukanya Samriddhi Yojana Online Payment

Every parent with a daughter should consider having a Sukanya Samriddhi Yojana Account to secure a financial foundation for her future. To deposit funds into an existing account, follow these easy steps:

  • Transfer money from your regular savings account to India Post Payment Bank (IPPB).
  • Visit the Department of Post (DOP) product page and choose Sukanya Samriddhi Yojana Account.
  • Provide your Sukanya Samriddhi Yojana account details (account number and customer ID).
  • Log in successfully and transfer funds from IPPB to the Sukanya Samriddhi Yojana scheme or any other designated scheme by the Department of Post.
  • Choose the duration and amount as agreed upon during the scheme's purchase.
  • Receive a notification of the successful transfer from India Post Payment Bank on your registered mobile number.

Sukanya Samriddhi Yojana Deposit Limits

The deposit limits for the Sukanya Samriddhi Yojana (SSY) have a minimum deposit of ₹250 per month or ₹3,000 per year, whereas the maximum deposit limit is ₹1.5 lakh per year. To keep the account active, a minimum deposit of ₹250 per month is mandatory. Failure to meet this requirement for a year will result in a penalty of ₹50.

It's important to note that the ₹1.5 lakh maximum deposit per year encompasses the minimum required deposit and any additional contributions made to the account. This regulation ensures that the total annual deposit does not exceed ₹1.5 lakh.

Transfer of SSY Account

Follow these steps to successfully transfer your Sukanya Samriddhi Yojana (SSY) account between post offices or banks:

  • Step 1: Begin by obtaining the SSY Transfer Request Form from the current institution.
  • Step 2: Complete the form with accurate details and submit it, along with the original SSY account passbook, a photocopy of the account opening application form, specimen signature, and, if applicable, a cheque or demand draft for any outstanding balance.
  • Step 3: The current institution will verify the documents and initiate the transfer, sending the original account documents to the new institution.
  • Step 4: Visit the new post office or bank branch with the original SSY Transfer Request Form and fresh KYC documents.
  • Step 5: Upon processing the transfer, the new institution will update the account details and issue a new passbook, while the existing institution closes the original SSY account.
  • Step 6: Keep copies of all documents submitted, and anticipate a few weeks for the transfer to complete, following up with the new institution if needed.

Sukanya Samriddhi Yojana Maturity Period

The maturity period of the SSY is 21 years, starting from the date of opening of the account. For example, if you open an SSY account for your daughter on 20 July 2023, the maturity date will be 20 July 2044.

However, there is an exception to this rule. If the account holder attains the age of 18 years before the maturity date, the account can be closed prematurely. In this case, the account holder will receive the entire amount in the account, along with interest accrued up to the date of closure.

The SSY is a great way to save for your daughter's future. The fixed interest rate and long maturity period make it a safe and secure investment option.

Premature Closure of SSY Account

Premature closure of a Sukanya Samriddhi Yojana (SSY) account is generally discouraged, given its long-term focus on a girl child's education and marriage. However, it can be done under specific circumstances:

1. Marriage of the Girl Child: If the girl child turns 18 before the maturity date, the account can be closed prematurely to withdraw funds for her marriage. The account holder must submit a marriage certificate to the post office or bank, along with the premature closure application.

2. Death of the Girl Child: In the unfortunate event of the girl child's demise, the account can be closed prematurely. The account holder (parents or guardians) should submit the girl child's death certificate along with the premature closure application to receive the total accumulated funds.

Sukanya Samriddhi Yojana Vs PPF

Sukanya Samriddhi scheme and the Public Provident Fund (PPF) are two saving schemes with distinct features that cater to different financial goals and preferences. While Sukanya Samriddhi Yojana (SSY) is designed to secure the future of your girl child, the Public Provident Fund (PPF) is suitable for individuals looking to build a long-term, tax-efficient investment.

Refer to the table below to understand the key differences between the Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF).

Features SSY PPF
Interest rate Fixed at 7.6% p.a. Variable, currently at 7.6% p.a.
Maturity period 12% onwards 15 years, extendable by blocks of five years
Withdrawal rules Can be closed prematurely only if the girl child gets married before the age of 18 years Can be closed prematurely for a variety of reasons
Can be closed prematurely for a variety of reasons ₹1.5 lakh per year ₹1.5 lakh per year
Tax benefits Contributions eligible for deduction under Section 80C Contributions eligible for deduction under Section 80C

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Frequently Asked Questions

Sukanya Samriddhi Yojana (SSY) is a government savings scheme for the girl child, offering a high-interest rate and tax benefits, with a maturity period of 21 years.

You can open a Sukanya Samriddhi Account for your daughter by visiting a post office or authorized bank, filling out the required form, and submitting necessary documents.

Individuals with regular income, including salaried employees, professionals like doctors or lawyers, and business owners.

Repayment can be done over 12 months to 48 months as per your choice.

There are foreclosure charges applied based on the disbursement date.
i) Before 6 months: 5% of Principal Outstanding+GST
ii) After 6 Months: 2% of Principal Outstanding+GST

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