Sukanya Samriddhi Yojana (SSY), Objectives, Eligibility, Benefits and Account Opening

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Sukanya Samriddhi Yojana, SSY Scheme, SSY Objectives, SSY Eligibility, SSY Benefits, Documents Required for SSY Scheme Account Opening, How to Open SSY Account in Post Office or in Bank. The interest rate has been increased to 8.0% from April 2023 to June 2023.

Sukanya Samriddhi Yojana which is also known as the SSY Scheme was launched by the Government of India for the betterment of the Girl Child. The scheme was launched with the aim to make parents aware and encourage them to save money for their girl child which can be used later for her education and marriage. In this article, we will discuss this scheme in detail like what is it, its Objectives, Eligibility, Benefits, etc. so read the article till the end.

Table of Contents

Sukanya Samriddhi Yojana (SSY) Overview

Scheme Name Sukanya Samriddhi Yojana (SSY)
Scheme Type Government Scheme
Launch Date 22 January 2015
Applicable For Girl Child Below 10 Years
SSY Account Open Post Offices and In Authorized Banks Only
Interest Rate 8.0 % Per Annum
Minimum Investment Amount Rs. 250 Per Annum
Maximum Investment Amount Rs. 1.5 Lakhs Per Annum
Tenure of Deposit

Up to 21 Years from the Date of Account Opening

15 Years Deposit is Mandatory

Maturity Period 21 Years (or marriageĀ of the girl child after attaining the age of 18 years)

What is Sukanya Samriddhi Yojana (SSY)?

Sukanya Samriddhi Yojana (SSY) is a savings scheme for the girl child launched by the Government of India under the ‘Beti Bachao, Beti Padhao’ campaign. The scheme aims to encourage parents to save money for their daughter’s education and marriage expenses. It was launched on 22 January 2015 by Prime Minister Narendra Modi and is available in all post offices and designated banks across the country.

Under the Sukanya Samriddhi Yojana, parents can open a savings account in the name of their daughter who is below 10 years of age. The account can be opened with a minimum deposit of Rs. 250 and a maximum deposit of Rs. 1.5 lakh in a financial year. The account can be operated until the girl child attains the age of 21 years.

The scheme offers an attractive interest rate, which is revised and notified by the government from time to time. The interest rate is currently at 8.0% p.a. (as of June 2023). The interest earned and the maturity amount are tax-free, and the contributions are eligible for tax deductions under Section 80C of the Income Tax Act, 1961.

The scheme has several benefits, including ease of operation and low-risk investment options for parents looking to secure their daughter’s future. It also encourages the education and empowerment of the girl child, thereby promoting gender equality in the country.

Objectives of Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana scheme’s objectives are to promote education, gender equality, financial inclusion, and encourage parents to save money for their daughter’s future.

The main objectives of the Sukanya Samriddhi Yojana scheme are as follows:

Promote Education

The scheme aims to encourage parents to save money for their daughter’s education and empower them with quality education, which is essential for their overall growth and development.

Promote Gender Equality

The scheme is part of the “Beti Bachao, Beti Padhao” campaign, which aims to empower and educate the girl child and promote gender equality in the country.

Secure Future

The scheme provides a safe and secure investment option for parents looking to secure their daughter’s future and accumulate a substantial corpus for her education and marriage expenses.

Increase Savings

The scheme aims to encourage parents to save money regularly and inculcate a savings habit, which is essential for their financial well-being.

Financial Inclusion

The scheme is available in all the post offices and designated banks across the country, which promotes financial inclusion and helps people living in rural areas to access financial services.

Eligibility Criteria for Sukanya Samriddhi Yojana

The eligibility criteria for Sukanya Samriddhi Yojana are as follows:

Age of the Girl Child

The account can be opened only in the name of a girl child who is a resident of India and is below the age of 10 years. The account can be opened within one year of the birth of the girl child.

Number of Accounts

A maximum of two Sukanya Samriddhi Yojana accounts can be opened for two girl children in a family. However, in the case of twin girls, the parents can open three accounts, one for each child, and another joint account.

Citizenship

The girl child must be a resident of India to open an account.

Deposits

The SSY account can be opened with a minimum deposit of Rs. 250, and a maximum deposit of Rs. 1.5 lakh can be made in a financial year. The deposits can be made until the completion of 15 years from the account opening date. Thereafter, the SSY account will continue to earn interest until maturity even when no deposits are made into it.

Parents or legal guardians of the girl child can open the account, and only one account can be opened for each girl child. The account can be transferred anywhere in India if the girl child moves to a new place, and the account can be closed before maturity in case of the girl child’s marriage after attaining the age of 18 years.

Benefits of Sukanya Samriddhi Yojana

The Sukanya Samriddhi Yojana scheme provides several benefits to the girl child and her parents. Some of the benefits of the scheme are:

High-Interest Rate

The scheme offers a high-interest rate of 8.0% p.a. (as of June 2023), which is much higher than other savings schemes like PPF, NSC, and FDs.

Tax Benefits

Contributions made towards the scheme are eligible for tax deductions under Section 80C of the Income Tax Act, 1961, up to a maximum of Rs. 1.5 lakh in a financial year. The interest earned and the maturity amount are also tax-free.

Long-Term Investment

The scheme has a long-term investment horizon of 21 years, which can help parents accumulate a substantial corpus for their daughter’s future education and marriage expenses.

Easy to Operate

The account can be opened with a minimum deposit of Rs. 250 and can be operated at any post office or designated bank across the country.

Secure Investment

The scheme is backed by the Government of India, which makes it a safe and secure investment option for parents looking to secure their daughter’s futures.

Promotes Education and Empowerment

The scheme encourages parents to save money for their daughter’s education and empowerment, thereby promoting gender equality in the country.

Overall, the Sukanya Samriddhi Yojana scheme is an excellent investment option for parents looking to secure their daughter’s future and promote her education and empowerment.

Tax Benefits and Exemptions under Sukanya Samriddhi Yojana

The Sukanya Samriddhi Yojana offers tax benefits and exemptions under the following sections of the Income Tax Act, 1961:

Section 80C

Contributions made towards the scheme are eligible for tax deductions under Section 80C of the Income Tax Act, 1961, up to a maximum of Rs. 1.5 lakh in a financial year. This means that the amount invested in the scheme can be claimed as a deduction from the total taxable income of the taxpayer, reducing their tax liability.

Section 10(11A)

The interest earned and the maturity amount is tax-free under Section 10(11A) of the Income Tax Act, 1961. This means that the interest earned and the maturity amount are not considered as taxable income, and the taxpayer does not have to pay any tax on these amounts.

The tax benefits are available only to the person who has made the investment in the scheme, which means that the parents or the legal guardians of the girl child can claim tax deductions and exemptions.

Sukanya Samriddhi Yojana Account Transfer and Withdrawal Rules

Sukanya Samriddhi Yojana account transfer and withdrawal rules are as follows:

Transfer of Account

If the girl child’s family moves to another city or town, they can transfer the Sukanya Samriddhi Yojana account to the new location. To transfer the account, the account holder needs to submit a transfer application along with the account opening form, KYC documents, and the original passbook to the post office or bank where the account is held. There is no fee charged for transferring the account.

Partial Withdrawal

The scheme allows partial withdrawals from the account after the girl child attains the age of 18 years for higher education or marriage expenses. The withdrawal amount cannot exceed 50% of the balance in the account at the end of the financial year preceding the year of withdrawal. The account holder needs to submit an application for withdrawal along with relevant documents, such as admission or fee receipt for higher education or a marriage invitation card.

Premature Closure

In case of the death of the girl child or in extreme cases such as medical emergencies, the account can be prematurely closed. The account holder needs to submit an application for premature closure along with relevant documents, such as the girl child’s death certificate or medical certificate. In case of premature closure, the interest rate applicable will be as per the post office or bank’s savings account interest rate.

The scheme has a lock-in period of 21 years, which means that withdrawals or premature closure are allowed only in specific circumstances. The account holder also needs to provide relevant documents and follow the procedure specified by the post office or bank where the account is held for transferring, partial withdrawals, or premature closure of the account.

Documents Required for Sukanya Samriddhi Yojana

The following are the documents required for opening a Sukanya Samriddhi Yojana account:

Birth Certificate of the Girl Child

A copy of the birth certificate issued by the municipal corporation or local authorities needs to be submitted as proof of the girl child’s age.

Identity Proof of the Depositor

The depositor needs to submit any one of the following identity proofs: PAN Card, Aadhaar Card, Passport, or Voter ID Card.

Address Proof of the Depositor

The depositor needs to submit any one of the following address proofs: Passport, Voter ID Card, or Aadhaar Card.

Photographs of the Girl Child and Depositor

Two passport-size photographs of the girl child and depositor need to be submitted along with the application form.

The above-mentioned documents may vary based on the post office or bank where the account is opened. In addition to the above documents, the depositor needs to fill out the Sukanya Samriddhi Yojana account opening form and provide all the required details such as the name of the girl child, date of birth, address, and more. The account can be opened either in the name of the girl child or as a joint account with the girl child and the depositor.

How to Open a Sukanya Samriddhi Yojana Account

To open a Sukanya Samriddhi Yojana account, the following steps need to be followed:

Visit the Nearest Post Office or Authorized Bank

Sukanya Samriddhi Yojana accounts can be opened at any post office or authorized bank, such as State Bank of India (SBI), Punjab National Bank (PNB), ICICI Bank, Axis Bank, Bank of Baroda, and more.

Submit the Required Documents

As mentioned earlier, the following documents are required to open a Sukanya Samriddhi Yojana account:

  • Birth certificate of the girl child
  • Identity proof of the depositor
  • Address proof of the depositor
  • Photographs of the girl child and depositor

Fill Out the Application Form

The depositor needs to fill out the Sukanya Samriddhi Yojana account opening form with all the required details, such as the name of the girl child, date of birth, address, and more.

Deposit the Initial Amount

The minimum amount required to open a Sukanya Samriddhi Yojana account is Rs. 250, and the maximum amount is Rs. 1.5 lakh in a financial year. The depositor needs to deposit the initial amount while opening the account.

Get the Account Passbook

Once the account is opened, the depositor will receive a passbook that contains all the details of the account, such as the account number, name of the girl child, amount deposited, interest earned, and more.

The Sukanya Samriddhi Yojana account can be opened either in the name of the girl child or as a joint account with the girl child and the depositor. Also, the account can be transferred from one post office or bank to another.

Interest Rate of Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana (SSY) interest rate is fixed by the Government. The interest rate is reviewed every quarter. The rate of interest is reducing since its launch. From 1 April 2020 to 31 March 2023, the rate of interest was 7.6% continuously. Recently the interest rate has been increased to 8.0% for the period of 01 April 2023 to 30 June 2023.

The rate of interest offered by the SSY Scheme is mentioned below:

PERIOD RATE OF INTEREST (%)
03.12.2014 – 31.03.2015 9.1
01.04.2015 – 31.03.2016 9.2
01.04.2016 – 30.09.2016 8.6
01.10.2016 – 31.03.2017 8.5
01.04.2017 – 30.06.2017 8.4
01.07.2017 – 31.12.2017 8.3
01.01.2018 – 30.09.2018 8.1
01.10.2018 – 30.06.2019 8.5
01.07.2019 – 31.03.2020 8.4
01.04.2020 – 31.03.2023 7.6
01.04.2023 – 30.06.2023 8.0

Authorized/Designated Banks for Sukanya Samriddhi Yojana Account Opening

The government has authorized or designated the following banks for opening accounts under Sukanya Samriddhi Yojana (SSY Scheme):

  • Axis Bank
  • Bank of Baroda
  • Bank of India
  • Bank of Maharashtra
  • Canara Bank
  • Central Bank of India
  • ICICI Bank
  • IDBI Bank
  • Indian Bank
  • Indian Overseas Bank
  • Punjab and Sind Bank
  • Punjab National Bank
  • State Bank of India
  • UCO Bank
  • Union Bank of India

Conclusion

In conclusion, Sukanya Samriddhi Yojana is a government-backed savings scheme designed specifically for the welfare of the girl child. The scheme offers various benefits, such as tax exemptions, high-interest rates, and maturity benefits. The eligibility criteria are straightforward, and the account can be opened easily by submitting the required documents at any post office or authorized bank. By investing in Sukanya Samriddhi Yojana, parents or guardians can secure their girl child’s future and provide financial support for her education and marriage expenses.

Frequently Asked Questions (FAQs)-SSY

Q: What is Sukanya Samriddhi Yojana or SSY Scheme?

Ans: Sukanya Samriddhi Yojana is a money-saving scheme for the education and marriage of the girl child.

Q: Who is eligible for the SSY Scheme?

Ans: The girl below 10 years old is eligible for the SSY Scheme.

Q: Where can we open an account to take benefit of the SSY Scheme?

Ans: An account for the SSY Scheme can be opened in a Post Office or designated Bank across the country.

Q: What is the amount that can be invested or deposited in the SSY Account?

Ans: Minimum Rs. 250 and Maximum Rs. 1.5 Lakhs per annum can be invested in the SSY Account.

Q: What is the tenure of depositing money in the SSY Account?

Ans: Money can be deposited in SSY Account up to 21 years from the date of account opening, in which it is mandatory to deposit for 15 years.

Q: What is the maturity period of the SSY Account?

Ans: The SSY Account will mature on completion of a period of 21 years.

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