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Sukanya Samriddhi Yojana Interest Rate

Back in the year 2015, the government of India launched Sukanya Samriddhi Yojana under the campaign of ‘Beti Bachao, Beti Padhao’. This scheme was specifically launched to secure the financial future of the girl child. The scheme allows the guardian of the girl child to open the savings account for their girl child in any authorized commercial bank or Indian Post Office.

Currently, the Sukanya Samriddhi Yojana interest rate is 7.6% compounded annually. The account can be opened by the parent of the girl child below the age of 10 years. The scheme tenure is of 21 years till or unit the girl gets married after the age of 18 years. Read further to know about various aspects of Sukanya Samrisshi Yojana.

Sukanya Samriddhi Yojana Interest Rates 2021

For the financial year 2020, currently, the Sukanya Samriddhi Yojana interest rate is 7.6% compounded yearly. The government of India fixes the rate of interest of the scheme and is revised on a quarterly basis. Let’s take a look at the historic Sukanya Samriddhi interest rates.

Time-Period

Interest Rate

April- June2020 (FY 2020-21)

7.6%

January-March 2020 (FY 2020-21)

8.4%

July-Sep 2019 (FY 2019-20)

8.4%

April-June 2019 (FY 2019-20)

8.5%

Jan-March 2019 (FY 2018-19)

8.5%

Oct to Dec 2018 (FY 2018-19)

8.5%

Jul-Sep 2018 (FY 2018-19)

8.1%

Apr-Jun 2018 (FY 2018-19)

8.1%

Jan-March 2018 (FY 2017-18)

8.1%

Oct-Dec 2017 (FY 2017-18)

8.3%

Jul-Sep 2017 (FY2017-18)

8.3%

Apr-Jun 2017 (FY2017-18)

8.4%

One of the major advantages of SSY is that it offers a higher interest rate as compared to the other savings scheme. Thus, with this savings scheme, one can certainly ensure the future of their girl child and meet her financial requirements in the future.

Benefits Offered by Sukanya Samriddhi Yojana

Along with securing the financial future of the girl child, there are many other benefits offered by Sukanya Samriddhi Yojana. Here we have explained some of the benefits in detail.

Simple and Hassle-free Process of Opening the Account

The parents of the girl child can open the SSY account with a minimum deposition of Rs.250 and can invest up to a maximum of Rs.1.5 lakh in a financial year. The minimum contribution limit has been revised to Rs.250, which was earlier Rs.1000. 

Helps to Create a Financial Corpus for the Girl Child

The Pradhan Mantri Sukanya Samriddhi Yojana provides an opportunity for the parent of the girl child to create a financially secure future for their child right from the beginning. Moreover, it is also an excellent investment option to finance the higher education of the girl child. Under the SSY scheme, the guardian or parent can withdraw 50% of the accumulated sum to fulfill the higher education needs of the girl child after the girls turn 18 years of age. 

Offers EEE Tax Benefit

Tax benefits can be availed under the SSY scheme is exempt, exempt, exempt (EEE) form:

  • Tax exemption can be claimed U/S 80C of the Income Tax Act on the investment made towards the scheme up to the maximum limit of Rs.1.5 lakh.
  • The interest earned on the invested amount is tax-free.
  • The maturity proceeds are tax exempted under Section 10(10D) of the Income Tax Act.
You may like to Read: Sukanya Samriddhi Yojana Calculator

Premature Withdrawals Rules

If the girl child reaches 18 years of age, the account holder of the scheme can make premature withdrawals. In addition to this, in case of the uncertain demise of the parent or if any medical emergency happens, the premature withdrawals can be made after completion of the 5 years of the scheme from the date of initiation.

Features of Sukanya Samriddhi Yojana  

Let’s take a look at some of the salient features of the scheme:

  • Sukanya Samriddhi Yojana account can be managed by the guardian or parent of the girl child until the girl turns 10 years old.
  • Once the girl reached 18 years of age, she can operate her account.
  • The contribution made towards Sukanya Samriddhi Yojana ranges from a minimum of Rs.250 to a maximum of Rs.1.5 lakh in a financial year. The contribution should be made in the multiple of Rs.100.
  • The deposition tenure of the SSY scheme is of 15 years and the maturity period of the scheme is 21 years.
  • The subscriber can transfer the Sukanya Samriddhi Yojana account from post-office to bank and vice versa anywhere within India. No charges are applicable for the transfer of account.
  • In order to transfer the account from post-office to bank and vice-versa, the subscriber is required to submit the address of residential change.
  • The deposition made towards the account can be in the form of online transfer, demand draft, cash or cheque,

Eligibility Criteria for Opening Sukanya Samariddhi Yojana Account

Here are the eligibility criteria for opening the Sukanya Samriddhi Yojana account.

  • Only the parent and legal guardian of the girl child is allowed to open the Sukanya Samriddhi account in the name of the girl child.
  • While opening the account, the age of the girl child should be less than 10 years.
  • The maturity tenure of the account is until the girl reaches the age of 21 years.
  • An individual can start investing in SSY with a minimum of Rs.250 and can invest up to a maximum of Rs.1.5 lakh in a financial year.
  • Only one account can be opened in the name of a single girl child.
  • An individual family can open only two SSY accounts on the name of each girl child.
  • Investors can take advantage of the higher interest rates offered by the company fixed deposits.

Sukanya Samriddhi Account Offered by Banks  

Here is the list of banks that offers Sukanya Samriddhi Scheme:

  • United Bank of India
  • State Bank of India
  • Punjab National Bank
  • UCO Bank
  • Oriental Bank of Commerce
  • ICICI Bank
  • Indian Bank
  • Canara Bank
  • Corporation Bank
  • Axis Bank
  • Bank of India
  • Allahabad Bank
  • Union Bank Of India
  • Vijaya Bank
  • Punjab & Sind Bank
  • Syndicate Bank
  • IDBI Bank
  • Indian Overseas Bank
  • Bank of Maharashtra
  • The central bank of India
  • Dena Bank
  • Andhra Bank
  • Bank of Baroda

Wrapping it UP!

The government of India has taken up different initiatives to empower and educate the financial freedom for the girl child. With Sukanya Samriddhi Scheme, one can secure the financial future of the girl child even in their absence.

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Written By: PolicyBazaar - Updated: 23 March 2021
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