Sukanya Samriddhi Yojana (SSY) was introduced in January 2015 as a government-backed savings scheme under the ‘Beti Bachao, Beti Padhao’ campaign to save for the future of girl children in India. SSY accounts can be opened for girls up to 10 years of age by parents or legal guardians with recurring deposits between INR 250 and INR 1.5 lakh annually. The interest rate of the scheme stands at the present competitive rate of 8.2%, but this can be revised by the government from time to time. SSY accounts mature after 21 years or on the wedding of the account holder after turning 18, whichever event comes first. To support this initiative, parents are encouraged to save for their daughter’s education and future expenses and empower the girls with financial security and stability.
Benefits of Sukanya Samriddhi Yojana
High-interest rate
The Sukanya Samriddhi Scheme has one of the most impressive interest rates among small savings schemes in the country. Policyholders get a competitive 8.2% per annum compounded interest rate (from July 1st, 2024, to September 30th, 2024). This way, the investment made through this scheme grows substantially and ensures a solid financial foundation for girl children.
Tax benefits
Sukanya Samriddhi Yojana allows tax-free investments as per Indian income tax laws under section 80C of the Income Tax Act 1961. This noble scheme allows a maximum investment of INR 1.5 lakh per year. Furthermore, the interest and maturity amount earned under this scheme are completely tax-free, giving its investors total protection against taxation.
Flexible deposits and long-term savings
This scheme is subject to flexible deposits, with a minimum deposit starting from INR 250 only in one year. Besides, the long-term maturity tenure of deposits after 21 years makes it a long-term investment and appeals to families to fulfill their daughters’ education or marriage regardless of their financial status. Moreover, policyholders can maintain their account active even after a year without paying by putting it under regularisation at a penalty of just INR 50 on the unpaid minimum amount of INR 250.
How To Open a Sukanya Samriddhi Yojana Account in Any Bank?
Opening an account in Sukanya Samriddhi Yojana is very simple, and it can be done in several authorised banks and post offices. Here’s a step-by-step guide to opening an SSY account in both government and private banks.
Eligibility Check:
An SSY account can only be opened by parents or legal guardians of a girl child. The girl child must be an Indian resident and should be under the age of 10 years on the date of opening the account. Notably, only one account could be opened for each girl child and for a single family, only two SSY accounts are allowed to be opened. Sukanya Samriddhi Account can be opened for more than two girls in case a family has a girl child born in twins/triplets in the first or second birth in the family.
Choose a Government/Private Bank or Post Office:
There are two ways of opening a Sukanya Samriddhi Yojana account, either through a participating private/government bank or at a post office branch. If one of the participating banks happens to be where you have an existing savings account, then it is more convenient to create an SSY account with that particular financial institution. All you need to do is visit their websites and download the SSY Account Opening Application Form. Once you have completed filling out this form, submit it to the respective bank for opening your SSY account. The banks which partake in this scheme include:
-State Bank of India
-Allahabad Bank
-Andhra Bank
-Punjab and Sind Bank
-Bank of Baroda
-Canara Bank
-Bank of India
-Bank of Maharashtra
-Corporation Bank
-Central Bank of India
-Indian Overseas Bank
-Dena Bank
-Indian Bank
-UCO Bank
-Syndicate Bank
-United Bank of India
-Punjab National Bank
-Union Bank of India
-Oriental Bank of Commerce
-IDBI Bank
-Vijaya Bank
-Axis Bank
-ICICI Bank
The form and procedure apply the same as above.
Procedure For Opening an SSY Account At The Post Office
Head toward the nearest post office branch that provides Sukanya Samriddhi Yojana services. Then, the post office will provide you with an account opening form to open the SSY account for the Post Office Savings Bank scheme. With the application form, attach your ID proof, address proof, and any other documents requested by the post office. A minimum of INR 250 or a maximum of INR 1.5 lakh needs to be deposited as the initial amount. Deposits can be made to the SSY account by cash deposit, cheque, demand draft or even online transfer. It is crucial to ensure that there is at least one deposit made within a year to make it an active account.
Once the money is deposited, the concerned authorities in the particular post office will process your application. Once everything is verified, your SSY account will be opened, and a passbook containing the account details will be issued. This passbook should be kept safely for future reference.
How To Transfer a Sukanya Samriddhi Yojana Account From The Post Office To a Bank?
Here are guidelines for transferring an SSY Account from a post office to a bank:
- Go to the Post Office branch where you opened your account. A girl child need not visit the branch, as her guardian can do this alone.
- Inform the post office executive about your desire to transfer the SSY account.
- Complete and submit the duly completed account transfer form and KYC Papers. The executive will verify the details and proceed with transferring the account.
- Next, visit your preferred bank branch where you would prefer to maintain your SSY Account.
- In this step, submit your self-attested KYC documents, along with any other documentation the PO executive gave you when you requested to maintain your account there.
- After processing all these requests by bank officers, they will give you a new passbook.
Please note that the balance of the Sukanya Samriddhi Yojana scheme can be transferred anywhere in India without charge from or to post offices and banks or between post offices and banks. Such transfers may only require documentary proof that either the child or the guardian has changed residence. In any such circumstance, it should cost just INR 100.
Account management
If the respective bank offers online services for SSY, policyholders can manage their accounts online. They can also do it offline by visiting the branch, checking the balance, making deposits, and monitoring the account’s progress.
Premature withdrawal and closure
Early withdrawal or closure of an account is permitted in some specific cases, like the untimely death of the account holder before its maturity date or extreme financial hardships. Policyholders must submit relevant documents in such conditions.
Final Words
The financial empowerment of girls secures individual futures and shapes a nation embracing gender equality. Future technological advancements promise easier access and management of Sukanya Samriddhi Yojana accounts, enhancing the scheme’s reach and efficiency. SSY’s impact may extend far beyond finances, encouraging social progress and reshaping cultural attitudes. As more girls benefit from
this initiative, India could witness a surge in women-led economic growth, paving the way for a more inclusive and prosperous future.
