Saving for children’s future is important for every parent. Be it boy or girl, it is very important for saving an amount for securing the future of the child. But even till today, girls are often ignored at times. To encourage savings for the girl child, the government has taken a great initiative under the “Beti Bachao Beti Padhao” campaign – the Sukanya Samriddhi Yojana. This scheme will help people to save for their girl’s future. The minimum amount of deposit of Rs.250 that can be deposited in one year is also within reach of people from the lower strata of the economy. Read on to more about the Sukanya Samriddhi Yojana account.

Sukanya Samriddhi Calculator

What is Sukanya Samriddhi Yojana (SSY)?

Sukanya Samriddhi Yojana (SSY) is a small savings deposit scheme exclusively for the girl child. This scheme was introduced by the Government of India as an initiative of the Beti Bachao Beti Padao campaign. The Sukanya Samridddhi Account can be opened by the parents or legal guardian of a girl child below the age of 10 years. This account can be a good way to build a fund for the girl’s future education and financial independence. This also helps the depositor, the guardians as the amount invested in SSY accounts  

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Who can open a Sukanya Samriddhi Yojana Account?

The Sukanya Samriddhi Yojana Account can be opened by the natural or legal guardian of a girl child from her birth till she attains the age of 10 years. The account can be opened only in the name of the girl child. The guardian can open two accounts for upto two girls. In case a person has twin girls, then he/she can open upto three SSY accounts and also in case if the first birth results in three girls.

The Sukanya Samriddhi Account can be opened at any post office and some designated banks. To open an account, you need to submit KYC documents like PAN Card, Adhaar Card etc. You have to fill up the SSY Form and deposit the required amount in the form of cheque or demand draft.

The account remains operative for 21 years from the date of opening of the account or till the marriage of the girl after she turns 18 years of age.

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How much can be deposited in a Sukanya Samriddhi Yojana Account? 

The SSY account can be opened with a minimum deposit of Rs.250. After that, you can deposit any amount in the multiple of Rs.100. However the minimum deposit in a SSY account in a financial year should be Rs.250 and the total money deposited in the account should not exceed Rs.150000 in single or multiple deposits.

Did you know: Deposits can be made for 15 years from the date of opening the account.

For example, if an account is opened for a 9 year old girl child, then the deposits should continue until she turns 24 years old. The account, however, matures when the girl turns 30 years (21 years from the age of opening the account) and during this period, the account earns interest on the balance.

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What happens for irregular payment in SSY Account?

In case of an irregular account where the minimum deposit has not been paid, the account can be regularized by payment of a penalty fees of Rs.50 for each year, along with the minimum subscription amount for the years of default.

For example, if the account has been irregular for three years, the minimum amount needs to be paid to regularize the account is:

Penalty for 3 years : 50 X 3 = 150

Minimum deposit amount for 3 years: 250 X 3 = 750

Total : Rs.900

If the penalty is not paid, then the entire amount of deposit along with that made before the date of default will earn an interest at post office savings account rate, which is 4% currently. The excess interest, if paid, will be reversed.

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What is the mode of deposit in the SSY account?

You can make deposit in the form of cheques and demand draft. Inthis case, an endorsement has to be made on the back of the instrument by the depositor indicating the name  and account number of the account holder for whom the deposit is being made. The endorsement also needs to be signed.

You can also make cash deposits. Online transfers through internet banking can also be the mode of deposit in the SSY account.

What is the rate of interest in a SSY account

The government fixes interest rates on quarterly basis based on the G-sec yields. The current rate of interest earned by SSY account is 8.60% wef April 1, 2016. The interest is compounded annually and credited to the account. The account holder can also opt for monthly interest in which case the interest will be calculated in multiple of thousands (on the account balance) and will be paid to the account holder. The remaining fraction will continue to earn interest at the prevailing rate.

Who can operate the SSY account?

The SSY account can be opened and operated by the natural or legal guardian of the girl child till she turns the age of 10. When the girl turns 10, she can operate the account herself. But the deposits are to be made by her guardian or any person in authority.

Can I do premature/partial withdrawal in Sukanya Samriddhi Account?

Yes. Partial withdrawal upto 50% of the account balance can be made only for the purpose of financing the girl’s higher education. Also, this withdrawal can be made only after the girl turns 18 years of age.

However, you need to provide documentary evidence in the form of confirmed admission offer or fee slip in an educational institution.

Can a Sukanya Samriddhi Yojana account closed prematurely?

Under the unfortunate circumstances of the death of the account holder, the SSY account can be closed prematurely on production of the death certificate. The balance amount in the account along with accrued interest will be paid to the guardian of the account holder.

An application for premature closure of the SSY account can also be presented after completion of 5 years of account opening. This is allowed in case of extremely compassionate ground like medical support at times of life threatening diseases.

Tax Rules of SSY

SSY investments offer the highest tax-free return with sovereign guarantee. The investment is designated as EEE (exempt-exempt-exempt) status. This means that the principal invested, the interest accrued as well as the maturity amount is tax-free.

Features of Sukanya Samriddhi Yojana Account

  • Sukanya Samriddhi Yojana (SSY) Account is a small savings scheme aimed at creating a corpus for the girl child.
  • SSY account can be opened by the natural or legal guardian of the girl child.
  • A family can have 2 SSY accounts for 2 girls. In the case of having twins resulting in 3 girls, upto 3 accounts can be opened.
  • An SSY account can be opened for a girl since her birth till she attains an age of 10 years.
  • SSY account can be opened at Post offices and 22 listed banks.
  • An SSY account earns an interest rate of 8.5% per annum and is calculated and compounded on a yearly basis.
  • The minimum annual deposit of the SSY account is Rs.250 and the maximum amount that one can deposit in a year is Rs.150000.
  • A minimum amount of Rs.250 must be paid every year to prevent the account from getting deactivated.
  • The deposit made at an SSY account in a financial year can be claimed as tax deduction under section 80C of Income Tax Act.
  • The SSY account matures after the completion of 21 years.  No interest will be credited in the account after the maturity period if the fund is not withdrawn.

What are the benefits of Sukanya Samriddhi Account

The Sukanya Samriddhi account not only creates a corpus for the girl child for securing her future, but also helps her guardian to plan for her financial security. The benefits are many.

High Rate of Interest

The existing rate of interest is 8.5% which is more than the existing rates offered by banks. The investment option is also more secure than investing in equities and mutual funds.

Tax Benefits

Apart from the financial security of the account holder, investing in Sukanya Samriddhi Yojana account offers tax benefits under Section 80C of the Income Tax Act. The maximum amount of tax deduction that can be availed is Rs.150000 per financial year.

The accrued interest throughout the tenure of the account as well as the maturity amount is exempted from income tax.

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FAQs

Can I open Sukanya Samriddhi Account online?

No, you cannot, You can however, download the form online, fill it up and submit it at any post office or back branch along with KYC documents.

Can I transfer online at SSY Account?

Yes, an online transfer to your SSY account can be done.

Can SSY account be transferred?

Yes, you can transfer SSY account from one branch to other as well as from one authorized bank to another.

Can I transfer SSY account from Post Office to Bank?

Yes, you can transfer the SSY Account from Post office to one of the authorized banks.

Can Sukanya Samriddhi Account be opened for NRIs?

No, NRIs are not eligible for opening SSY accounts for their daughters.

What documents are required for Sukanya Samriddhi Account?

The necessary documents required for opening a Sukanya Samriddhi Account are:

  • Birth Certificate of the girl child for whom the account is being opened
  • Proof of identity of the parent and legal guardian of the child
  • Proof of address of the parent and legal guardian
  • Photograph of the child and her parents/guardian

This is a Govt. of India Scheme. You are advised to visit www.nsiindia.gov.in for the latest modifications in the scheme.