Sukanya Samriddhi Scheme ( SSY ) : Benefits, Eligibility & Interest Rate

Sukanya Samriddhi Scheme: Sukanya Samriddhi Scheme is a small savings scheme for the girl child in India. It was launched as part of the "Beti Bachao, Beti Padhao" campaign by the Indian government with the aim of promoting the education and welfare of girl children in India. The scheme offers a relatively high interest rate and provides a secure investment option for parents looking to save for their daughter's future.

Under the Sukanya Samriddhi Scheme, parents or legal guardians of a girl child can open an account in her name with a minimum deposit of INR 1,000 and a maximum deposit of INR 1.5 lakhs in a financial year. The deposit in the account can be made until the girl reaches the age of 10 years, after which no further contributions are accepted. The account matures when the girl reaches the age of 21 years, at which point the deposited amount, along with the interest earned, can be used for her education or marriage.

The interest rate offered under the Sukanya Samriddhi Scheme is determined by the government and is subject to change from time to time. However, it has consistently been higher than other small savings schemes offered by the government, making it a popular choice among parents looking to save for their daughter's future.

Sukanya Samriddhi Scheme Benefits

The Sukanya Samriddhi Scheme offers several benefits, some of which are:

1. High Interest Rate: The scheme offers a relatively high interest rate, which is determined by the government and is subject to change from time to time. The interest rate offered under the scheme is higher compared to other small savings schemes, making it an attractive option for parents looking to save for their daughter's future.
2. Tax Benefits: Deposits made under the Sukanya Samriddhi Scheme are eligible for tax benefits under section 80C of the Income Tax Act. Additionally, the interest earned and the maturity amount are exempt from tax.
3. Easy to Open and Operate: The Sukanya Samriddhi Scheme is easy to open and operate, with a low minimum deposit requirement. The account can be opened in any post office or authorized bank branches across India.
4. Safe and Secure: The scheme is backed by the government of India, making it a safe and secure investment option for parents looking to save for their daughter's future.
5. Long Tenure: The scheme has a long tenure of 21 years, during which parents can make deposits and earn interest. This provides a long-term savings option for parents who want to ensure their daughter's future is financially secure.
6. Liquidity: The account can be prematurely closed in case of the unfortunate death of the girl child or in case of her marriage after she attains the age of 18 years.

Sukanya Samriddhi Scheme Eligibility

The Sukanya Samriddhi Scheme is open to parents or legal guardians of a girl child who are Indian citizens. The following are the eligibility criteria for the scheme:

1. Age of Girl Child: The girl child must be below 10 years of age at the time of opening the account.
2. Maximum Number of Accounts: Parents or legal guardians can open only two accounts in the name of two different girl children.
3. Depository Requirements: A minimum deposit of INR 1,000 and a maximum deposit of INR 1.5 lakhs in a financial year is required to open and maintain the account.
4. Residency Requirements: Parents or legal guardians must be resident Indian citizens.
5. Document Requirements: Proof of identity and address of the parents or legal guardians, as well as the birth certificate of the girl child, are required to open the account.

Sukanya Samriddhi Yojana Interest Rate 

The interest rate for the Sukanya Samriddhi Yojana is set by the Indian government and is subject to change from time to time. As of my knowledge cut-off in 2021, the current interest rate for the financial year 2021-2022 is 7.6% per annum, compounded annually. The interest rate for previous years has also been in the range of 7-8%.

Duration	Rate of interest (%)
April 2020 onwards	7.6%
1 January 2019 - 31 March 2019	8.5
1 October 2018 - 31 December 2018	8.5
1 July 2018 - 30 September 2018	8.1
1 April 2018 - 30 June 2018	8.1
1 January 2018 - 31 March 2018	8.1
1 July 2017 - 31 December 2017	8.3
1 October 2016 - 31 December 2016	8.5
1 July 2016 - 30 September 2016	8.6
1 April 2016 - 30 June 2016	8.6
From 1 April 2015	9.2
From 1 April 2014	9.1

Sukanya Samriddhi Yojana Withdrawal Rules

The withdrawal rules for the Sukanya Samriddhi Yojana are as follows:

• Maturity: The account matures after 21 years from the date of opening, or when the girl child reaches the age of 18 years, whichever is earlier. The deposit, along with the accumulated interest, is payable to the girl child or the legal guardian, as the case may be.
• Premature Closure: The account can be closed prematurely in the following circumstances:
• Death of the girl child.
• Marriage of the girl child after she reaches the age of 18 years.
• In case of severe disability or life-threatening diseases of the girl child.
• Withdrawal Limit: Only 50% of the balance in the account at the end of the preceding financial year can be withdrawn for specific purposes such as higher education or marriage of the girl child.
• Penalty for Early Closure: In case of premature closure (other than in the cases mentioned above), a penalty of 1.5% of the deposit balance will be levied.

Sukanya Samriddhi Yojana Tax benefits

The Sukanya Samriddhi Yojana offers several tax benefits, making it an attractive investment option for parents looking to save for their daughter's future. The following are the tax benefits offered by the scheme:

1. Tax Deductibility: Deposits made under the Sukanya Samriddhi Yojana are eligible for tax deductions under Section 80C of the Income Tax Act, 1961, up to a maximum of INR 1.5 lakhs in a financial year.
2. Tax-Free Interest: The interest earned on the deposit is tax-free, which means that it is exempt from income tax.
3. Tax-Free Maturity Amount: The maturity amount, including the accumulated interest, is exempt from income tax.

Documents required to open an SSY account

The following documents are required to open an Sukanya Samriddhi Yojana (SSY) account:

1. Birth certificate of the girl child: This is required to establish the age of the girl child and to prove that she is a girl child.
2. Identity proof of the depositor: Any government-issued photo ID such as Aadhaar card, passport, or PAN card can be used as identity proof.
3. Address proof of the depositor: Any government-issued photo ID such as Aadhaar card, passport, or voter ID card can be used as address proof.
4. Bank details: If the depositor intends to open the account through a bank, they need to provide the bank account details.
5. Depositor's signature: A signature sample of the depositor is required to open the account.

How to open a Sukanya Samriddhi Account?

The Sukanya Samriddhi Account can be opened at any authorized bank or India Post office. Here are the steps to open an account:

1. Choose an authorized bank or post office: The account can be opened at any authorized bank or India Post office. A list of authorized banks and post offices can be obtained from the Ministry of Women and Child Development's official website.
2. Obtain the account opening form: The account opening form can be obtained from the bank or post office where the account is being opened or can be downloaded from the official website of the Ministry of Women and Child Development.
3. Fill out the form: The account opening form must be filled out accurately and completely, and all required documents must be attached.
4. Submit the form and required documents: The completed form and required documents must be submitted to the bank or post office along with the initial deposit.
5. Receipt of account number: Upon successful submission, the depositor will receive an account number, and the account will be activated.
6. Subsequent Deposits: Subsequent deposits can be made through cash, cheque, or demand draft, and the depositor can choose the frequency of deposits, i.e., monthly, quarterly, half-yearly, or yearly.

How to pay for SSY online

The Sukanya Samriddhi Yojana (SSY) account can be funded through online transactions as well. Here is the process to pay for SSY online:

1. Register for Net banking: If you do not have net banking enabled for your account, you will need to register for it with your bank.
2. Log in to your Net banking account: Use your username and password to log in to your net banking account.
3. Find the Sukanya Samriddhi Yojana option: Look for the Sukanya Samriddhi Yojana option under the "Investments" or "Government Schemes" section of your net banking account.
4. Enter the required details: Enter the necessary details such as the account number, amount to be paid, and the payment frequency.
5. Confirm the transaction: Review the details entered and confirm the transaction to initiate the payment.
6. Receive confirmation: You will receive a confirmation of the transaction via email or SMS, and the payment will be credited to your SSY account.

Banks that offer SSY account

Sukanya Samriddhi Yojana (SSY) accounts can be opened at authorized banks and India Post offices. The following is a list of banks that offer SSY accounts:

1. State Bank of India (SBI)
2. Punjab National Bank (PNB)
3. Bank of Baroda (BOB)
4. Canara Bank
5. Union Bank of India
6. Central Bank of India
7. Indian Bank
8. Bank of India
9. United Bank of India
10. Allahabad Bank
11. Andhra Bank
12. Corporation Bank
13. Dena Bank
14. Indian Overseas Bank (IOB)
15. Oriental Bank of Commerce (OBC)
16. Syndicate Bank

This is not an exhaustive list, and there may be other banks that also offer SSY accounts. It is advisable to check with the bank where you have an existing account or a nearby bank to confirm if they offer SSY accounts. Additionally, India Post offices also offer SSY accounts, and they can be a convenient option for those who do not have a bank account.

FAQs on Sukanya Samriddhi Yojana

Here are some frequently asked questions about the Sukanya Samriddhi Yojana (SSY):

Who is eligible to open an SSY account?

An SSY account can be opened in the name of a girl child who is a citizen of India and is below 10 years of age. The account can be opened by the legal guardian of the girl child, typically a parent or a close relative.

What is the minimum and maximum deposit amount in an SSY account?

The minimum deposit amount is Rs. 250, and there is no maximum limit. Deposits can be made in multiples of Rs. 100.

How long can an SSY account be active?

SAn SSY account can be active for 21 years from the date of opening the account or until the girl child reaches the age of 18 years, whichever is earlier.

Can the SSY account be transferred from one bank to another?

Yes, the SSY account can be transferred from one bank to another or from a bank to a post office, and vice versa.

Can an SSY account be closed before maturity?

An SSY account can be closed before maturity only under exceptional circumstances, such as the death of the girl child or if the girl child is married before she turns 18 years old.

What is the interest rate on an SSY account?

The interest rate on an SSY account is determined by the government and is revised on a quarterly basis. The current interest rate for the January-March quarter of 2023 is 7.6%.

Is an SSY account tax-free?

The interest earned on an SSY account is tax-free, and the deposits made into the account are eligible for tax deductions under section 80C of the Income Tax Act.

Can an SSY account be used as collateral for a loan?

No, an SSY account cannot be used as collateral for a loan.

What happens to the SSY account after maturity?

After maturity, the depositor can either withdraw the entire amount or continue to keep the account active by depositing the minimum required amount every year.