The Sukanya Samriddhi Yojana (SSY) is a remarkable financial scheme introduced by the Central Government of India with the aim of empowering the girl child and securing her future through long-term savings. This comprehensive guide highlights the essential details of this impactful initiative.
Sukanya Samriddhi Yojana (SSY) is one of the national savings plans offered by the Government of India. This small deposit scheme is specially designed to secure a girl's future.
What is Sukanya Samriddhi Yojana (SSY)?
The Sukanya Samriddhi Yojana is a government savings scheme designed to benefit girls as part of the "Beti Bachao - Beti Padhao" initiative".
The parent or guardian of the girl aged 10 years and below can open an account under this scheme. This plan carries a higher interest rate along with various tax benefits.
Eligibility Criteria for Sukanya Samriddhi Yojana
Here are the details of Sukanya Samriddhi Yojana on eligibility criteria:
- The account can be opened by one of the parents or the legal guardian of the girl's child.
- The girl must be under 10 years old.
- Only one account is allowed for one girl.
- A family can only open 2 SSY plan accounts
Benefits of Sukanya Samriddhi Yojana Scheme
These are the main benefits of Sukanya Samriddhi Yojana:
- Affordable: SSY is an affordable option when it comes to saving money for your daughter. Only a minimum account balance of Rs 250 per financial year is required to maintain an SSY account.
- Good interest rates: The plan offers high interest rates compared to other plans offered by the government.
- Tax Benefits: You can claim tax deductions under Section 80C up to Rs 1,50,000. Additionally, interest earned on SSY and income received upon maturity or withdrawal is tax-free.
- Guaranteed Returns: You can receive guaranteed returns at maturity.
Investing in Sukanya Samriddhi Yojana scheme
Investors can apply for the Sukanya Samriddhi program through post offices or participating public and private banks. Investors need to submit some documents and follow the process detailed below:
The documents needed to open an SSY account are:
- Birth certificate of the girl.
- Photo identification of the applicant's parent or legal guardian.
- To start investing in Sukanya Samriddhi Yojana (SSY), you will need to provide proof of address of the applicant's parent or legal guardian.
- Other KYC tests like PAN, voter ID.
How to apply for Scheme Sukanya Samriddhi Yojana
- Download the application form from RBI website, Indian Post website or official websites of participating public and private sector banks.
- Fill out the form with key details of the girl and a parent or legal guardian.
Below are the main mandatory fields to be filled in the Sukanya Samriddhi Yojana scheme form:
- Primary account holder: girl's name
- Co-owner: Name of a parent or legal guardian
- Initial deposit amount
- Check/DD number and date of initial deposit
- Date of birth of the girl along with birth certificate details
- Identity of parent or legal guardian, such as driving license, Aadhaar, etc.
- Current and permanent address (according to the identity document of the parent or legal guardian)
- Details of other KYC tests like PAN, voter ID card, etc.
How to open an SSY Government Scheme account offline
To open a Sukanya Samriddhi Yojana (SSY) account, you can visit any participating bank or post office branch. To finalize the process, kindly follow these steps:
- Visit the Bank or Post Office: Go to the bank or post office where you want to open the account.
- Fill out the application form with the necessary information and attach the supporting documents.
- Pay your first deposit by cash, check or demand order. The payment can range from Rs 250 to Rs 1.5 lakh.
- Your request and payment will be processed by the bank or post office.
- After processing, your SSY account will be activated. A savings passbook will be provided for this account to commemorate the opening of the account.
How to open an SSY account online
Download the IPPB App: To make online payments into your Sukanya Samriddhi Yojana (SSY) account, you must first download the IPPB app (India Post Payments Bank Mobile Banking App) on your smartphone. You can use this app to set standing instructions for a specific amount to be deposited online into your SSY account.
Here's how to make your Sukanya Samriddhi Yojana payment online, step by step:
- The money needs to be transferred from your bank account to the IPPB account.
- Navigate to PDO Products in IPPB app and choose Sukanya Samriddhi Yojana account.
- Provide your SSY account number and DOP customer ID.
- Choose the amount you want to pay and the duration of the installment.
- The IPPB will inform you when the payment process has been set up correctly.
- You will receive a notification every time the app makes a money transfer.
Interest rates of Sukanya Samriddhi Yojana
The interest rate of the Sukanya Samriddhi Yojana is fixed by the government and revised every quarter. Check the Current Interest Rate: For the current quarter of 2024, the interest rate of Sukanya Samriddhi Yojana is 8.2% per annum.
Here is a table of Sukanya Samriddhi yojana with further details:
- SSY interest rate: 8.2% per annum
- Investment Amount: Minimum – Rs. 250; Maximum of Rs. 1.5 lakh per annum
- Amount at maturity: depends on the amount invested
- Maturity period: 21 years
Sukanya Samriddhi Yojana (SSY) Interest Rates:
Here are the previous interest rates for Sukanya Samriddhi Yojana (SSY):
- From April 2020 to March 2023: 7.6 percent
- From April 2023 to December 2023: 8.0 percent
- From Jan 2024 onwards: 8.2 percent
Tax Benefits of Sukanya Samriddhi Yojana (SSY)
The principal amount deposited, interest accrued during the entire tenure, and profits upon maturity are all exempt from taxation i.e tax-free. Additionally, the principal amount is eligible for a deduction under Section 80C, up to Rs 1.5 lakh.
Withdrawal Rules of Sukanya Samriddhi Yojana
The SSY withdrawal rules are as follows:
- Once the duration of the SSY account is completed, the girl will be able to withdraw the entire amount (including interest).
- The documents required for withdrawal from Sukanya Samriddhi Yojana account are as follows:
- Amount withdrawal request form.
- Proof of identification and address.
- Citizenship documents
- All documents/fee receipts required for submission during admission will be required for collection.
- Renunciation for the sake of higher education is permitted if the girl has completed 18 years of age and has also completed 10th standard. Please note that the money must be used to cover the fees/charges applied during admission.
- The maximum amount that can be withdrawn is equal to 50% of the amount available the previous year. Please note that the amount is available for withdrawal in 5 installments or even in a single payment.
Rules for Early Withdrawal from SSY Account
The applicable rules for early account closure are as follows:
- When the girl turns 18 and is about to get married, early revocation of SSY is permitted. However, to receive the benefit you will need to submit an application at least 1 month before the wedding and 3 months after the wedding.
- If the girl becomes a non-resident/non-citizen, the SSY account will be considered closed. Please note that in case of change of status, the guardian or the girl will have to inform within one month of the change of status.
- In the unfortunate event of the girl's passing, the guardian can withdraw the remaining balance in the Sukanya Samriddhi Yojana (SSY) account by submitting the death certificate.
- Closure of the account for other reasons may also be permitted, although the interest accrued on contributions will be the same as the interest rates offered by post offices.
Key Tips Related to Sukanya Samriddhi Chart of Accounts
- The account expires 21 years after opening or in case of marriage of the girl after she turns 18.
- After the age of 18, early withdrawal of up to 50% of the investment is allowed, even if she does not get married.
- Investment duration: 21 years
- Minimum investment: Rs 1,000 per year
- Maximum investment: Rs 1.5 lakh per annum
- Upon expiry of the account, the balance (principal and accrued interest) is paid to the girl upon submission of an application accompanied by proof of citizenship, residence and identity.
Sukanya Samriddhi Yojana (SSY) Calculator
The Sukanya Samriddhi Yojana Calculator is a valuable tool that assists investors in determining the potential returns from their investments in the Sukanya Samriddhi Yojana scheme.
This online calculator simplifies the process of calculating the maturity amount by considering factors such as the yearly investment amount, the starting year of investment, and the age of the girl child.
By inputting these details, guardians can estimate the approximate value that will be received upon maturity, along with the total invested amount.
The calculator accounts for the scheme's features, like the minimum and maximum investment limits, the interest rate, and the scheme's maturity period, providing users with a clear understanding of the financial outcomes of investing in the Sukanya Samriddhi Yojana scheme.
Frequent questions (Sukanya Samriddhi Yojana)
How much money would be ideal to invest in the Sukanya Samriddhi Yojana?
- The SSY account permits investments ranging from Rs 250 to Rs 1.5 lakh per financial year.
What is the eligible age for the Sukanya Samriddhi Yojana?
- The SSY account must be opened at the time of the child's birth, but before she turns 10 years old.
How many accounts have been opened under the Sukanya Samriddhi Yojana?
- A single account can be opened for each girl, either at the post office or at any bank. This account can only be registered for a family unit with up to two daughters. More than two accounts can be opened in a family only in the case of the birth of twins or triplets.
Who qualifies to make withdrawals from the Sukanya Samriddhi Yojana?
- Only the girl in whose name the account has been opened will be able to withdraw money from her SSY account once it matures. If the girl is under 18, the guardian can withdraw the funds.
For how long will the Sukanya Samriddhi Yojana account remain active?
- The payment tenure of SSY accounts is 15 years and the maturity period is at least 21 years.
Is Sukanya Samriddhi Yojana tax free?
- Investments in the Sukanya Samriddhi Yojana (SSY) are classified as EEE (Exempt, Exempt, Exempt). This means that the capital invested, the interest accrued and the amount at maturity are tax-free. The benefit of tax deduction on the invested capital amount is up to Rs 1,50,000 per annum under Section 80C.
