Sukanya Samriddhi Yojana (SSY)

Sukanya Samariddhi Yojana (SSY) is a savings scheme launched by Prime Minister Narender Modi under the campaign Beti Bachao Beti Padhao intending to secure the financial future of the girl child. From April 2020 the Sukanya Samriddhi Yojana offers an interest rate of 7.6%, compounded annually.

Sukanya Samariddhi Yojana is a long-term savings scheme, which can be opened in any designated public and private banks and post-offices. With a tenure of 21 years or until the girl child is married after the age of 18, the major advantages offered by Sukanya Samariddhi Yojana are:

• It offers a high-interest rate of 7.6%, compounded annually.
• Offers the benefit to transfer the account.
• Tax benefits can be availed as an EEE ( exempt, exempt, exempt) form.

What is Sukanya Samriddhi Yojana?  

Sukanya Samriddhi Yojana is for the parents or guardians who are blessed with a daughter and are looking for the options to plan the future of their daughter in financial aspects. Pradhan Mantri Sukanya Samrridhi Yojana gives an opportunity to the parents to invest in the plan for the welfare of their girl children. If you invest in this scheme, it can be one of the best gifts that you can give to your girl child on her birth as you can systematically plan savings for her. 

Sukanya Samriddhi Scheme is basically for the newborn girl child to ensure that female children are not left behind. As per the scheme, it provides financial security to a girl until the time she attains 18 years of age. Parents who have a girl child who is below the age of 10 years are eligible to opt for the benefits of Sukanya Samriddhi Yojana. The plan matures in 21 years. 

The scheme was launched by the Prime Minister, Narendra Modi under the Beti Bachao Beti

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Padhao Yojana and it aims at the welfare of the girl child. The interest rate as per the Sukanya Samriddhi Yojana is 7.6% as per the April-June 2020 quarter and now the minimum annual deposit for the scheme has also been revised to Rs. 250 from Rs. 1000 which was earlier.

Features of Sukanya Samriddhi Yojana  

The following are some of the salient features of Sukanya Samriddhi Yojana:

• The parents or the guardian of the girl child can operate the account until the girl reaches 10 years of age.
• The girl must operate the account once she reaches 18 years of age.
• One can start making deposition in Sukanya Samriddhi Yojana with a minimum amount of Rs.250 and can deposit up to a maximum Rs.1.5 lakh in a financial year. The deposition can be made in the multiples of 100.
• The deposition period of Sukanya Samriddhi Scheme is of 15 years and the maturity period of the scheme is 21 years.
• The Sukanya Samriddhi Yojana Account can be transferred from banks to post-office and vice versa anywhere within India. No charges are applicable for the transfer of account.
• To transfer the account from bank to post-office and vice-versa, proof of change is residence is required to be submitted. In case an individual fails to submit the proof then she will have to Rs.100.
• The deposition made towards the account can be in the form of demand draft, online transfer, cheque, or cash. Exist

Eligibility for Sukanya Samariddhi Yojana   

Let’s take a look at the eligibility criteria for opening a Sukanya Samariddhi Yojana Account.

• Only the legal guardian or parents of the girl child can 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.
• Only two Sukanya Samriddhi Yojana account is allowed per family i.e. one for each girl child.
• Investors can take advantage of the higher interest rates offered by the company fixed deposits.

Sukanya Samriddhi Yojana Interest Rate  

The investment made towards SSY can be used to financially secure the future of the girl child. The Sukanya Samriddhi Yojana interest rate is determined on a quarterly basis and is considered as one of the highest among various investment options. The current Sukanya Samriddhi Yojana interest rate is 7.6% compounded annually. Let’s take a look at the interest rates of SSY year wise.

The best part about Sukanya Samriddhi Account is that it offers a higher rate of interest in comparison to all other saving schemes. Therefore, with this child education plan for the girl child, one can certainly ensure their girl child’s future and meet her financial requirements in the future. 

Benefits of Sukanya Samriddhi Yojana Account

Along with providing financial security to the girl child, there are a plethora of benefits offers by Sukanya Samriddhi Yojana. Let’s take a look at these benefits in detail.

Simple and Easy Process of Opening the Account

The Sukanya Samriddhi Yojana Account can be opened easily with a minimum deposition of Rs.250 and can invest up to a maximum of Rs.1.5 lakh in a financial year. With a minimum contribution limit of Rs.250, the account can be opened by anyone in a simple and hassle-free way.

Helps to Create a Financial Backup for the Girl Child

Pradhan Mantri Sukanya Samriddhi Yojana helps the individual to create a financial backup for the girl child right from the beginning. Moreover, it is also considered as a remunerative way to finance the higher education of the girl child. Under Sukanya Samriddhi Yojana Scheme, after the girl turns 18, 50% of the balance can be withdrawn from the account to meet the educational expenses of the girl child.

The EEE Tax Benefit Cannot Be Ignored

The Sukanya Samriddhi Yojana offers tax benefits under exempt, exempt & exempt form. This means that:

• The contribution made towards the scheme up to the maximum limit of Rs.1.5 lakh is tax exempted U/S 80C of Income Tax Act.
• The interest earned on the contribution made towards the scheme is tax-free.
• The amount received upon maturity is tax-free under section 10(10D) of the Income Tax Act.

Premature Withdrawals can be Made Under Special Circumstances

Premature withdrawals can be made if the girl reaches the age of 18 years. Besides this, premature withdrawal is also allowed after completion of the 5 years of the scheme from the date of initiation, in case of any medical emergencies or the unfortunate demise of the parent. However, to do premature withdrawals it is mandatory to submit the application form.

Attractive Interest Rate

As compared to any other investment scheme Sukanya Samriddhi Yojana offers an attractive interest rate of 7.6%, compounded annually. The Sukanya Samriddhi Yojana interest rate is fixed by the government and is revised on a quarterly basis.  

How to Open Sukanya Samriddhi Account?

Here we have mentioned the detailed process to open the Sukanya Samriddhi Yojana Account with post-office and both online and offline.

As a small savings scheme, Sukanya Samriddhi Yojana post office scheme is a good investment plan for the parents who don’t want to get burdened by the financial needs later on.

Documents Required to Open Sukanya Samriddhi Account  

The documents that should be kept handy while opening Sukanya Samriddhi Account is:

• Sukanya Samriddhi Yojana opening form
• A certificate of birth of the girl child is required to be submitted at the time of opening the account.
• Identity proof and address proof of the depositor.
• Any other documents that are requested by the post-office and bank.
• A medical certificate is required to be submitted in case twins or triplets are born under one order of birth.

Sukanya Samriddhi Yojana Account Details 

• Eligibility: You can only open the Sukanya Samriddhi Account in the name of your girl child before she reaches the age of 10 years. However, there has been a relaxation introduced where one year grace is given in special cases
• Sukanya Samriddhi Yojana Interest Rate: As per the scheme of Sukanya Samriddhi Yojana, the interest rate is 7.6 % for a financial year. With such interest, one should invest in such a plan that will give them good returns on maturity.
• Return on SSY: You can get a decent return by investing in this scheme. For example, if you invest Rs. 1000 per year, you would get Rs. 46,821 at the maturity of the scheme i.e. after 21 years. So, the more you invest, the more returns you can get in this plan and it will help you secure your girl child's future needs.
• Tenure of Deposit for Sukanya Samriddhi Yojana: As per the Sukanya Samriddhi Yojana, one can deposit for a maximum period of 15 years and the account exists for 21 years from the date of opening the account.
• Sukanya Samriddhi Yojana Tax Benefits: With Sukanya Samriddhi's account, the account holder gets triple tax benefits which means that no tax is levied on the amount withdrawn, amount invested and amount earned as interest.
• Premature closure of Sukanya Samriddhi account: You can close the account after an authorized order by the Central government in these scenarios:
• If the account holder dies, then he/she can withdraw the amount.
• If there is a case of a life-threatening disease or a medical emergency
• Withdrawal from Sukanya Samriddhi Account: Parents or legal guardians can make a partial withdrawal of a maximum of up to 50% of the amount at the end of the previous financial year. However, withdrawal can only be made if the account holder has attained the age of 18 years and for cases like higher education or for marriage expenses.
• Initial deposit for opening Sukanya Samriddhi account: As per the scheme of the Sukanya Samriddhi Account, the legal guardian needs to pay Rs 1000 at the time of opening the account.
• Penalty & Late Fees: If the legal guardian fails to pay the minimum amount of Rs. 1000 in a financial year, the account will be discontinued. It can be revived by paying the penalty of Rs. 50 per year the payment has been missed and also by making the payment of the minimum amount required for deposit of that financial year.

Here are some other important details you need to know about the Sukanya Samriddhi Yojana account. All these details will help you to deal with the Sukanya Samriddhi account.

How to Download Sukanya Samriddhi Yojana Application Form Online?  

The application form of Sukanya Samriddhi Yojana can be downloaded  from various sources such as:

• From the website of Indian Post.
• From the website of Reserve Bank of India.
• Individual website of public sector banks such as PNB, SBI, BOB,etc.)
• From the website of participating private sector banks such as HDFC, Axis, ICICI, etc.

As there are multiple sources to download the Sukanya Samriddhi Yojana application form online, the format of the form will be the same regardless of the source.

Comparison With Popular Government Schemes

How to Fill The Application Form of Sukanya Samriddhi Account?

The Sukanya Samriddhi Yojana application form requires the account holder to provide some key information about the girl child in whose name the contribution will be made towards the scheme. Details of legal guardian or parent are also required who will contribute/deposition on her behalf. The following are the key information that is required to be filled in the application form.

• Name of the girl child (Primary account holder).
• Name of the legal guardians/ parents opening the account (joint holder).
• Date of birth of the girl child.
• Initial deposit amount.
• DD/cheque number and date (used of the primary deposit).
• Identity proof of guardian/ parent (Aadhaar, driving license, etc.).
• Primary account holder birth certificate details (date of issue, certificate number,etc.).
• Any other KYC documents detail ( Voter ID, PAN, etc).
• Permanent address proof and present address.

Once the applicant fills all these details in the application form, the form needs to be signed by the account opening authority and submitted to the post office/ banks along with the copies of documents applicable. 

What happens if excess or less amount is paid towards Sukanya Samriddhi Scheme?

• Excess Amount – No interest is applicable for any deposits above Rs.1,50,000. The account holder can withdraw the excess amount at any time.
• Lesser Amount- In case the investor fails to pay a minimum amount of Rs.250 in a financial year, the account will be considered as a default. However, one can activate the account by paying a fine of Rs.50.

Sukanya Samriddhi Yojana Withdrawal Rules

Here are the withdrawal rules of SSY.

• The account holder can withdraw the entire accumulated amount including the interest from the account after the completion of tenure of the scheme. However, these are the documents that one needs to submit.
• ID Proof
• Application form for the withdrawal of the amount.
• Address proof
• Citizenship Documents.
• If the girl child has reached at age of 18 years and has completed the 10th standard then she can make a withdrawal for higher education. However, the withdrawn amount should be used for the payment of the fees or any other charges that are imposed at the time of admission.
• While applying for withdrawal from Pradhan Mantri Sukanya Samriddhi Yojana, it is important to keep handy the documents such as admission to the college or university and fee receipt.
• The maximum amount that one can withdraw from the account is 50% of the amount that is available in the previous year.
• The account holder can withdraw the amount from the Sukanya Samriddhi Yojana account either in lump-sum or in 5 installments.

Pre-mature Withdrawal Rules of Sukanya Samariddhi Yojana   

Let’s take a look at the rules, which allow pre-mature withdrawal of the account.

• Premature withdrawal of the Sukanya Samriddhi scheme is applicable if the girl reaches 18 years of age and is getting married. However, it is mandatory to submit an application at least one-month prior marriage and three months after marriage to avail the benefit.
• Along with the submitted application, the account holder is also required to submit the documents that determine the age of the girl.
• If the girl child becomes non-resident or non-citizen then the account will be considered as closed. In such a case, the guardian or the girl must inform about the change of status one month before from the date of status change.
• In case of the demise of the girl child during the tenure of the scheme, the balance available in the account can be withdrawn by the guardian. Nevertheless, the guardian will have to submit the death certificate of the girl child.
• One can make premature withdrawals from the Sukanya Samariddhi account due to many other reasons as well. However, the interest earned from the contribution will remain the same as the interest rates offered by the post-offices.

Sukanya Samriddhi Account Offered by Banks  

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

What is recorded in the passbook? 

After the opening of Sukanya Samriddhi Account, a passbook is given to the depositor which includes information such as date of opening of the account, date of birth of the girl child, the amount deposited, and name, and address of the account holder.

The account holder needs to show this passbook to the banks or post-office, at the time of deposition of money into the account or at the time of receiving interest. Moreover, at the time of final withdrawal and maturity of account the banks and post-office verifies the passbook.

Sukanya Samriddhi Yojana Calculator

Sukanya Samriddhi Yojana Calculator is a tool, which helps the subscribers to calculate the maturity amount at the end of the scheme tenure. The subscribers can use this calculator to estimate how much they will receive as a maturity benefit at the end of the tenure of the scheme.

How to Calculate the Maturity Amount of Sukanya Samriddhi Yojana?  

The interest rates of Sukanya Samriddhi Yojana are fixed by the government every quarter.  The individual can estimate the maturity amount with the help of the Sukanya Samriddhi Yojana calculator.

In order, to use the Sukanya Samriddhi Yojana Calculator the individual should enter all the required information such as the age of girl child, minimum contribution amount, etc. Once, the account holder enters all the details, the SSY calculator estimates the amount of money the girl child will receive on the maturity of the scheme.

However, while contributing to Pradhanmantri Sukanya Yojana, it is important to keep in mind that the applicant should fulfill the above-mentioned eligibility criteria.

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