Sukanya Samriddhi Yojana (SSY) scheme was launched by Prime Minister Narendra Modi under the Beti Bachao Beti Padhao campaign with the main aim of securing the future of a girl child. The main benefits of the SSY scheme is mentioned below:
- High interest rate of 8.5% p.a.
- Tax benefits of up to Rs.1.5 lakh
- Account can be transferred
Investments made towards the scheme can be used for the girl child’s marriage and education. An SSY account can be opened at banks and post offices. Under Section 80C of the Income Tax Act, 1961, tax benefits of up to Rs.1.5 lakh are provided for contributions made towards the scheme.
Sukanya Samriddhi Yojana Interest Rate
Currently, the interest rate of SSY scheme is 8.5% p.a. and it is compounded on a yearly basis. Interest is not payable once the duration of the scheme is completed or if the girl becomes a Non-resident Indian (NRI) or a non-citizen. The rate of interest is decided by the government and is determined on a quarterly basis.
The rate of interest that has been offered by the scheme is mentioned in the table below:
|Duration||Rate of interest (%)|
|From 1 April 2014||9.1|
|From 1 April 2015||9.2|
|1 April 2016 – 30 June 2016||8.6|
|1 July 2016 – 30 September 2016||8.6|
|1 October 2016 – 31 December 2016||8.5|
|1 July 2017 – 31 December 2017||8.3|
|1 January 2018 – 31 March 2018||8.1|
|1 April 2018 – 30 June 2018||8.1|
|1 July 2018 – 30 September 2018||8.1|
|1 October 2018 – 31 December 2018||8.5|
|1 January 2019 – 31 March 2019||8.5|
What happens if a lesser or excess amount is paid towards sukanya samriddhi yojana scheme?
- Lesser amount: In case the minimum amount of Rs.500 is not paid in a financial year, the account will be considered as default. However, the account can be brought back to the active status by paying a fine of Rs.50.
- Excess amount: No interest is generated for any deposit above Rs.1.5 lakh. The depositor can withdraw the excess amount any time.
Sukanya Samriddhi Yojana Withdrawal Rules
The withdrawal rules of the SSY account are mentioned below:
Once the duration of the account has been completed, the entire amount that is available in the account including the interest can be withdrawn by the girl child. However, the below-mentioned documents must be submitted:
- Application form for the withdrawal of the amount.
- ID proof
- Address proof
- Citizenship documents
- Withdrawal is allowed for the purposes of higher education if the girl child has attained the age of 18 years and has completed 10th standard. However, the money must be used for the fee or any other charges that are levied at the time of admission.
- Documents such as admission to the university or college as well as the fee receipt must be submitted when applying for the withdrawal.
- The maximum amount that can be withdrawn is 50% of the amount that is available in the previous year. The amount can be withdrawn in 5 instalments or in a lump sum.
Rules for premature withdrawal from SSY account
The rules that allow premature closure of the account is mentioned below:
- Once the girl attains the age of 18 years old and is getting married, SSY premature withdrawal is allowed. However, an application must be submitted at least one month before marriage and 3 months after the marriage to avail the benefit. Documents which determine the age of the girl must also be provided.
- In case the girl child becomes a non-citizen or a non-resident, the account will be deemed as closed. Any such change in status must be informed by the guardian or the girl child within one month from the change in status.
- In case the girl child passes away, the balance that is available in the account can be withdrawn by the guardian. However, the death certificate must be submitted.
- If the account has been opened for 5 years and more, and the bank or post office feel that the continuation of the account is causing difficulties to the girl child, the guardian or girl child can opt for premature closure.
- Permission to close the account will be permitted for other reasons as well, but the interest that is earned from the contributions will be the same as the interest rates that are provided by post offices.
Features of Sukanya Samriddhi Yojana
The main features of the SSY account are mentioned in the table below:
|Operation of the account||
|Deposits made towards the account||The minimum and maximum deposit that can be made in an account in a financial year is Rs.500 and Rs.1.5 lakh, respectively. The deposits can be made in multiples of 100.|
|Duration of the scheme||Deposits towards the scheme should be made for a period of 15 years. However, the scheme matures after 21 years.|
|Transfer of account||An SSY account can be transferred from post offices to banks and vice versa anywhere within India. No charges will be levied for the transfer of the account. However, a proof for change in residence must be produced. In case no proof is produced, a Rs.100 charge will be levied.|
|Mode of deposits||Deposits towards the account can be made in the form of online transfer, demand draft, cheque, or cash.|
Sukanya Samriddhi Yojana Tax benefits
Given below are the Sukanya Samriddhi Yojana tax benefits:
- Under Section 80C of the Income Tax Act, 1961, tax benefits of up to Rs.1.5 lakh are provided for contributions made towards the scheme.
- The interest amount that is generated is also exempt from tax.
- Tax benefits are also provided for the maturity amount or the withdrawal amount.
Sukanya Samriddhi Yojana Eligibility
The Sukanya Samriddhi Yojana account eligibility are mentioned below:
- The parent or legal guardian can open an SSY account on behalf of a girl child until she reaches the age of 10.
- The girl child must be a resident Indian.
- In a family, up to two accounts can be opened for two girls.
- A third SSY account can be opened in case of twin girls.
Documents required to open an SSY account
The documents required to open an SSY account are mentioned below:
- SSY account opening form.
- The birth certificate of the girl child must be submitted at the time of opening the account.
- The ID proof and address proof of the depositor must be submitted at the time of opening the account.
- A medical certificate has to be submitted in case multiple children are born under one order of birth.
- Any other documents that are requested by the bank or post office.
What are the details that are recorded in the passbook?
Once an SSY account has been opened, the depositor will receive a passbook. The date of opening the account, the date of birth of the girl child, the account number, the name, the address of the account holder and the amount that has been deposited will be mentioned on the passbook.
The passbook must be submitted to the bank or post office when money is deposited into the account, receiving the interest payment, and at the time of closing the account.
Banks that offer SSY account
The below-mentioned banks offer SSY scheme:
- State Bank of India
- United Bank of India
- UCO Bank
- Punjab National Bank
- Oriental Bank of Commerce
- Indian Bank
- ICICI Bank
- Corporation Bank
- Canara Bank
- Bank of India
- Axis Bank
- Allahabad Bank
- Vijaya Bank
- Union Bank of India
- Syndicate Bank
- Punjab & Sind Bank
- Indian Overseas Bank
- IDBI Bank
- Dena Bank
- Central Bank of India
- Bank of Maharashtra
- Bank of Baroda
- Andhra Bank
What is the relaxation in age limit given to girl child under the Sukanya Samriddhi Scheme?
Since, Sukanya Samriddhi scheme is a newly launched scheme, the government does not want few people to miss availing it due to reasons pertaining to age. Hence, any girl child who has attained the age of 10 years, exactly 1 year prior to the launch of scheme is also eligible to avail the scheme. So, any girl child born between 2nd December 2003 and 1st December 2004 is eligible to avail the Sukanya Samriddhi Scheme.
What is the taxation process of amount deposited under Sukanya Samriddhi Scheme?
There is a limit of Rs.1,50,000 which is exempt from taxation. Any amount above this will not fetch any income tax relief under section 80C of the Income Tax Act.
Who all can open Sukanya Samriddhi Account?
Any legal guardian or parent of a girl child can open Sukanya Samriddhi Account on behalf of their girl child.
Can a Non-Resident Indian avail the Sukanya Samriddhi Scheme?
As of now, there is no official communication regarding this issue and such NRIs are, for the time being, not covered under the Sukanya Samriddhi Scheme.
What happens in the case the girl child who is the beneficiary meets with an unexpected death?
In case of death of girl child, Sukanya Samriddhi Account is discontinued and closed and the proceeds are transferred to the guardian or parent of the girl child.
What happens in case of death of the depositor (guardian or parent of the girl child)?
In case of death of legal guardian or parent of girl child, the scheme is either closed and the proceeds are given to the family or girl child. Or, the scheme is continued with the deposited amount until the maturity period and the deposited amount continues to earn interest till the girl child attains the age of 21 years.
Can I convert my normal bank deposit account to Sukanya Samriddhi Account?
No. Currently, the feature of converting deposit account to Sukanya Samriddhi Account is not available. Sukanya Samriddhi is a special scheme aimed at uplifting the financial status of girls in the country and as such conversion of account is not allowed.
Can I withdraw money from my Sukanya Samriddhi Account, prematurely?
No. Only a partial withdrawal of up to 50% is allowed and that also when the girl child has attained at least the age of 18 years. This amount can be withdrawn only for higher education or wedding expense of the girl child.
Is the Sukanya Samriddhi scheme available throughout India?
Yes. Sukanya Samriddhi is a central government scheme and as such is present in each and every state of the country.
Is the Sukanya Samriddhi Scheme transferable as per location?
Yes. This scheme can be transferred from post office to bank or from one authorized bank to another. This is because there may be times when girl child may require to move due to study or other such situations.
Should I opt for Sukanya Samriddhi Scheme or s Recurring Deposit Scheme?
Sukanya Samriddhi looks like a recurring deposit scheme in the way it is structured but customers need to understand that unlike recurring deposits, this scheme is aimed specifically at offering financial strength to girl child in the country. Also, the rate of interest offered on this scheme is higher than that being offered by any bank on recurring deposit schemes.
Who can avail Sukanya Samriddhi Account?
Only parents or legal guardians of one or more girl child can avail the Sukanya Samriddhi Scheme in the name of their daughter.
How many Sukanya Samriddhi Accounts can I take for my daughter?
Only one Sukanya Samriddhi Account per girl child is allowed. So if you have two daughters, you can avail two separate account in both of their names and if you have one daughter then only one account can be availed.
Where can I open Sukanya Samriddhi Account for my daughter?
Sukanya Samriddhi account can be opened at any of your nearest post offices or at any branch of the authorized banks. These banks include almost all top and most popular public sector and private sector banks like State Bank of India, ICICI, HDFC, Punjab National Bank etc.
Has the interest rate on Sukanya Samriddhi Scheme changed since the time of launch?
At the time of launch, in the year 2014-15, the rate was 9.1% per annum which has been revised and increased to 9.2% per annum for the year 2015-16. However it reduced to 8.6% for FY 201.6-17
What is the deposit term for Sukanya Samriddhi Scheme?
The deposit term is a total of 14 years from the date of availing the scheme. However, the maturity of the account happens only when the girl child reaches the age of 21 years. Until 21 years of age, even when the depositor stops depositing money, the interest rate gets accrued.
Do private sector banks also have the authority to open Sukanya Samriddhi Accounts for public?
Yes. A few major private sector banks like ICICI, HDFC etc. are authorized by the Finance Ministry to furnish and maintain Sukanya Samriddhi Scheme to customers.
What happens to the deposit money from 14-21 years of the account, until maturity?
While the scheme can be availed to deposit money only for 14 consecutive years, the account reaches maturity only when the girl child is 21 years of age and hence the deposited amount is maintained in the account up till that time. During the 14-21 years, the deposit amount continues to earn the applicable rate of interest even when the depositor is not making any further deposits.
happens if I do not deposit money in the account?
The account gets deactivated if the minimum amount of Rs.250 is not deposited. However, it can be revived by paying a penalty fee of Rs.50. The terms of these scheme have been kept extremely flexible so as to ensure maximum participation by people with all kinds of economic status.
Can both parents claim tax deduction for Sukanya Samriddhi deposit amount under section 80C?
No. Only one of the parents or guardians can claim tax rebate as per section 80C for the amount deposited under Sukanya Samriddhi.
Can a person avail both Sukanya Samriddhi and PPF schemes?
Yes. Sukanya Samriddhi is a scheme aimed at mainly at girl child while PPF or Personal Provident Fund is there to help people save for retirement or longer tenures. Both can be availed simultaneously since both have different financial objectives.
Is there any difference between Sukanya Samriddhi scheme offered by public bank and that offered by private bank?
No. There is absolutely no difference in features of benefits. Be it private banks or public banks or post offices, all authorized entities offer exactly the same features and benefits since the scheme is a central government driven scheme.
What is the minimum annual deposit amount required for Sukanya Samriddhi Scheme?
The minimum deposit amount required per annum is Rs.250.
What is the maximum annual deposit amount that can be deposited under the Sukanya Samriddhi Scheme?
The maximum amount that can be deposited under the Sukanya Samriddhi Scheme is Rs.1.5 lakh per annum.
Is there a last date to avail the Sukanya Samriddhi Scheme?
No. There is no last date to avail the scheme. However, standard tax filing dates will apply to this scheme too for purposes of taxation.
Will I be issued a passbook under Sukanya Samriddhi Yojana?
Yes. A passbook to track all your transactions will be furnished to all account holders of the Sukanya Samriddhi Scheme. The passbook will carry all personal details like address, name and age details of the account holder. This is a good reference for depositors in case a dispute arises or even in case of transfer of account from one place to another or from post office to an authorized bank.
Can an account holder choose not to close the account after it has reached maturity?
Yes. An account holder can choose to continue the scheme even after it has reached maturity. The account holder can get the deposit term extended and the account will then continue to earn the same rate of interest until the account holder decided to discontinue and close the account.
All in all, Sukanya Samriddhi scheme is a progressive and highly appreciated scheme in the market, currently. This is because there was no such government-launched direct benefit scheme for girl child before this scheme was launched in the year 2015. The issue of gender discrimination plagues the country to a great extent and financial dependency of women is one major factor that fuels this issue of gender inequality. Having enough funds for higher education of girl child will ensure that girls are not forced to discontinue education because of lack of funds. Although, the scheme seems low on returns and slow at pace but it can go a long way in eliminating issues related to financial independence of girls.
The basic aim of SSY is to change the Indian mindset which assumes girl child to be a financial burden. With this scheme, the central government wants to convey the message that with a little amount of planning, the future of girl child can be secured. The scheme is supposed to affect the status of the girl child and maybe even the unbalanced gender ratio in the country, in the long run.
In case of Sukanya Samriddhi Yojana savings scheme, is it possible to invest a lump sum every month?
Yes, it is possible to invest a lump sum in the Sukanya Samriddhi Yojana savings scheme. You can start by making an initial investment of Rs. 250 and then make lump sum contributions, though the limit for investment in this saving scheme is Rs.1.5 lakh per annum. At an effective interest rate at 9.2%, a subscriber can make multiple contributions that are tax exempt under section 80C. Even the maturity amount under this section is tax exempt. Parents or legal guardians can open a Sukanya Samriddhi account for a girl child who is ten years old or below, not after.
Sukanya Samriddhi Top Pages
- SSY Calculator
- SSY Canara Bank
- Sukanya Samriddhi Yojana Documents Required
- Sukanya Samriddhi Yojana NRI
- Sukanya Samriddhi Yojana Interest Rate
- Sukanya Samriddhi Yojana Tax Exemption
- Sukanya Samriddhi Yojana Post Office
- Sukanya Samriddhi Yojana Age Limit
- Sukanya Samriddhi Account Online Check
- Online Transfer to SSY
- Sukanya Samriddhi Yojaa Bank List
- Sukanya Samriddhi Vs Children Mutual Fund
Sukanya Samriddhi Other Pages
- Bank of India Sukanya Samriddhi Account
- Corporation Bank Sukanya Samriddhi Account
- Dena Bank Sukanya Samriddhi Account
- IDBI Bank Sukanya Samriddhi Account
- Indian Overseas Bank Sukanya Samriddhi Account
- Sukanya Samriddhi Account Benefits
- Sukanya Samriddhi Account In Axisbank
- Sukanya Samriddhi Account In SBH
- Sukanya Samriddhi Account In State Bank Of Travancore
- Syndicate Bank Sukanya Samriddhi Account
- Beti Padhao Beti Bachao
- Loan against Sukanya Samriddhi Yojana