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Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Account

Sukanya Samriddhi Yojana is a savings scheme by the Government of India launched with the aim to protect the girl child in every family. Given the higher rate of female foeticide all over India, the Government came up with a noble initiative called “Beti Bachao Beti Padhao.” The Sukanya Samriddhi Yojana Account comes under this initiative only. This account can be opened by either the parents or the guardians of the girl child. She should not be more than 10 years of age. A higher rate of interest and tax benefits are some of the key attractions of this scheme.

Basic Eligibility Criteria To Open an SSY Account

Following are the different eligibility criteria that you must follow if you want to open an SSY account:

  • A family is allowed to open as many as two SSY accounts only.
  • You can avail the SSY scheme the third time in case you give birth to twin girls.
  • The maximum age limit of the girl child while you open the account should be no more than 10 years.
  • She can have only one SSY account.
  • The account can be opened by the legal guardian or any of the parents of the girl child.
  • The girl child should be a resident of India.

Tax Benefits on Sukanya Samriddhi Yojana

You can enjoy certain tax benefits if you open an SSY account for your girl child. These are:

  • The interest that would be generated comes under tax exemption.
  • Tax benefits can also be enjoyed for the withdrawal amount or maturity amount.
  • As per Section 80C of the Income Tax Act, one can enjoy tax benefits of up to INR 1.5 lakhs on contributions that he/she makes in the scheme.

How To Use SSY Calculator?

If you wish to get an estimate of the overall investment plan and the returns on maturity, you should use the Sukanya Samriddhi Yojana calculator. 

You can simply type “Sukanya Samriddhi Yojana calculator” on the search bar of Google.

Next, you need to click on the first link that appears in the search results. You will have to enter details such as the amount you wish to invest every year, the age of the girl, starting period of the investment and so on. By entering these details, you can get a clear estimate of the ROI.

Rate of Interest Available on SSY Account

The rate of interest available on Sukanya Samriddhi Yojana at present is 7.6%. Earlier it used to be 8.4%. This interest rate gets compounded annually. If the girl child migrates to another nation, then you will stop accruing any interest in SSY.

Premature Withdrawal Dos and Don’ts For SSY

  • If the girl has attained 18 years of age and will get hitched soon, then premature closure of the SSY account is possible. For this, she needs to submit an application at least one month prior to her wedding.
  • In the unfortunate case of the demise of the girl child, the parents can withdraw the available balance in the account. However, as proof, the parents need to submit the death certificate of the child.
  • If the girl child migrates to a foreign land, the account will get closed automatically. The parents/guardians should inform the authority within one month of the migration.

Key Points You Must Remember

  • Once the girl attains 18 years of age, she will have to operate the account herself.
  • The minimum and maximum amount that you can invest in a financial year are INR 500 and INR 1.5 lakh, respectively.
  • The maturity period of the SSY scheme is 21 years.
  • You can easily transfer the SSY account from the bank to the post office or vice versa. Remember that you need not pay anything extra for transferring the account. But you need to submit a proof of residence change. However, if you fail to submit the proof, then they will levy a transfer charge of INR 100.
  • You can make deposits for the account through cheques, cash, online transfers or demand drafts.

How to apply for Sukanya Samriddhi Yojana Account online?

  • Download the IPPB app on your smartphone.
  • Transfer the amount you wish to deposit from your bank account to the IPPB account.
  • Now, navigate to the option “DOP products.”
  • Select Sukanya Samriddhi Yojana.
  • Next, you need to enter your SSY account number and DOP client ID.
  • Select the amount you wish to pay and the number of installments.
  • You will soon be notified when the payment procedure is set up.
  • Transfer the money, and you are done!

Is it Possible To Open an SSY Account Offline?

Yes! You can easily open an SSY account offline. Just follow the below-given steps, and you are sorted!

  • Go to the website of RBI/Indian post office/ public and private sector banks that are participating in SSY.
  • Download the application form for SSY.
  • Fill in the details of the parents/guardians and the girl child.
  • Next, pay the amount which you wish to deposit. The amount can range between INR 250 to INR 1 lakh.
  • The bank/post office will verify the form and the payment. After that, they will open the SSY account for your girl child.

Frequently Asked Questions

You are required to write the name of your daughter in the space provided. Your name will appear in the form as “Joint account holder.”

You will have to submit the below-given documents:

  • Duly-filled Sukanya Samnriddhi Yojana form
  • Birth certificate of your daughter
  • Your address proof
  • KYC proofs (Voter ID, PAN card etc.)

The minimum amount that you can deposit while opening an SSY account is INR 250.

At present, the rate of interest on the SSY account deposit is 7.6%

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