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Introduction
Sukanya Samriddhi Yojana Account is a Government of India backed savings scheme designed for parents of girl children. The scheme allows parents to set up a trust for their child's eventual schooling and marriage expenses. It encourages parents to systematically save for their daughter’s higher education and marriage so that the perception of a girl child being a burden on her parents is abolished.
The scheme was introduced by Prime Minister Narendra Modi on 22nd January 2015 as part of the 'Beti Bachao Beti Padhao' campaign. The scheme offers an interest rate of 7.6% along with tax incentives. The account can be opened at your nearest India Post office or branch of all approved commercial banks.
All parents and guardians of girl children under the age of 10 can open this account. Only one account per child is allowed. Parents can open up to two accounts for two of their children (exceptions allowed for twins and triplets). The account is portable anywhere in India and can be accessed at any branch of the post office or the bank.
You can open the account with a minimum deposit of Rs.250. Any amount in multiples of Rs. 100 can then be deposited consecutively. However, the annual deposit limit is Rs. 150,000 a year. If a minimum deposit of Rs.250 is not made once per year, a fine of Rs.50 will be imposed on the account.
The child can start operating the account on her own once she reaches the age of 10. The account permits 50% withdrawal for higher education purposes at the age of 18. The account reaches maturity after 21 years of account opening. Deposits in the account can be rendered for a term of 15 years from the date of opening of the account. After this time, the account can only receive the applicable interest rate. If the girl is over 18 years old and married, usual closure is permitted.
At the time of launch in 2015-16, only the amount deposited in the account was eligible for tax deduction under Section 80C of the Income Tax Act, which was Rs. 1,50,000. However, in the 2015 Union budget, Finance Minister Arun Jaitley declared that the tax exemption would extend to the amount of interest accumulated on the portfolio and to the withdrawal of the fund after maturity, rendering the tax advantages close to those of the Public Provident Fund. These amendments were implemented retrospectively as of 1 April 2015.
About Sukanya Samriddhi Yojana (SSY) Account
- Features and Benefits of Sukanya Samriddhi Yojana Account
- Eligibility Criteria to Open a Sukanya Samriddhi Yojana Account
- How to open a Sukanya Samriddhi Yojana Account?
- What are the documents required to open a Sukanya Samriddhi Yojana Account?
- Interest rates and interest calculations on your Sukanya Samriddhi Yojana Account deposits
- Tax Implications of Sukanya Samriddhi Yojana
- Withdrawal and Maturity Benefits of Sukanya Samriddhi Yojana
- Sukanya Samriddhi Yojana FAQs
Features and Benefits of Sukanya Samriddhi Yojana Account
- Savings account specially designed for parents of girl children
- Encourages parents to save towards the education of the girl child; introduced as part of the ‘Beti Padhao Beti Bachao’ movement
- Parents of girl children under the age of 10 can open this account
- Only 2 accounts allowed per family; exemptions allowed in case of twins or triplets
- Minimum deposit of Rs.250 per annum and maximum of Rs.1.5 lakhs
- Tax exemption available on the deposited amount, interest accrued and the withdrawal amount
- Maximum tenure of the account shall be 21 years from the date of opening of account or the marriage of the girl child, whichever is earlier
- Deposits allowed for a maximum of 15 years from the date of opening of account
- Partial withdrawal of up to 50% allowed once the girl reaches 18 years of age
- Account can be opened at your nearest post office or any of the public and private sector banks
- Deposits into the account can be made via cash, cheque, DD or online transfers
- The account can be transferred from one post office to another, one bank to another or between post office and banks, upon submission of valid address proof
- Pre-closure of account is allowed to take care of marriage of the girl child, provided that the girl child has attained the age of 18 and relevant proofs are submitted thereof.
Eligibility Criteria to Open a Sukanya Samriddhi Yojana Account
As mentioned earlier, the account can be opened by parents of girl children under the age of 10. Here are some other criteria to be noted –
- The account may be created by the natural or legal guardian of a child under 10 years of age.
- A depositor may open and maintain only one account in the name of a girl child under the rules of the scheme.
- The natural or legal guardian of a child can open only accounts for two children. Exemptions may be allowed for twins or triplets.
How to open a Sukanya Samriddhi Yojana Account?
Sukanya Samriddhi Yojana Account can be opened at your nearest bank (both public sector and private) or post office.
- Request for the application to open an Sukanya Samriddhi Yojana Account
- Fill up the form and attach the Aadhaar card of the child or other proof of address and proof of age documents
- One passport size photograph will need to be attached
- Submit the form to the officer. He will verify the details, accept the deposit and create the account
- You will be given a passbook to track the deposits and interest accruals on the account
What are the documents required to open a Sukanya Samriddhi Yojana Account?
Here is a list of documents required to open Sukanya Samriddhi Yojana Account:
- Form of account opening for Sukanya Samriddhi Yojana Account
- The child's birth certificate should be presented while opening the account.
- At the time of opening the account, proof of ID and proof of address of the depositor must be given.
- In the event of twins or triplets, a medical certificate must be submitted.
- Any other records requested by the bank or the post office.
Interest rates and interest calculations on your Sukanya Samriddhi Yojana Account deposits
Interest shall be paid only during the tenure of the scheme. No interest shall be paid once the account attains maturity.
Here are the historical interest rates offered on the scheme till now:
Financial Year | Date Range | Interest Rate | Minimum Investment in Rs. | Maximum Investment in Rs. |
2014-15 | 1 April 2014 to 31 March 2015 | 9.10 % | 1,000 | 1,50,000 |
2015-16 | 1 April 2015 to 31 March 2016 | 9.2 % | 1,000 | 1,50,000 |
2016-17 | 1 April 2016 to 30 Sep 2016 | 8.6 % | 1,000 | 1,50,000 |
2016-17 | 1 Oct 2016 to 31 Mar 2017 | 8.5 % | 1,000 | 1,50,000 |
2017-18 | 1 April 2017 to 30 June 2017 | 8.4 % | 1,000 | 1,50,000 |
2017-18 | 1 July 2017 to 31 December 2017 | 8.3 % | 1,000 | 1,50,000 |
2017-18 | 1 January 2018 to 31 March 2018 | 8.1 % | 1,000 | 1,50,000 |
2018-19 | 1 April 2018 to 30 September 2018 | 8.1 % | 250 | 1,50,000 |
2018-19 | 1 October 2018 to 31 March 2019 | 8.5 % | 250 | 1,50,000 |
2019-20 | 1 April 2019 to 30 June 2019 | 8.5 % | 250 | 1,50,000 |
2019-20 | 1 July 2019 to 31 March 2020 | 8.4 % | 250 | 1,50,000 |
2020-21 | 1 April 2020 to 31 December 2020 | 7.6 % | 250 | 1,50,000 |
Tax Implications of Sukanya Samriddhi Yojana
This scheme is designated as a EEE ((Exempt, Exempt, Exempt) investment. This means that the principal amount, interest accrued and the withdrawal amount are all exempted from tax.
Currently, the principal amount exemption is fixed at Rs.1.5 lakhs per annum, under section 80C of the Income Tax Act, 1961.
Withdrawal and Maturity Benefits of Sukanya Samriddhi Yojana
The account opened under the scheme matures after 21 years of account opening or at the time of the girl’s marriage, whichever is earlier.
Account closure: Upon maturity, the balance, plus interest outstanding in the Account, shall be due to the Account Holder. He can claim it by submitting an application to close the Account, and should also provide the account document and passbooks.
Partial withdrawal: the account holder can avail one partial withdrawal when the girl attains the age of 18. 50% of the accrued total amount can be withdrawn towards higher education expenses of the girl.
Full withdrawal before maturity date: The amount can be fully withdrawn and the account can be closed before maturity in case of marriage of the girl. Relevant documents to prove that the girl is of marriage age should be provided for this purpose. This premature withdrawal is allowed only within one month prior to the marriage date and within 3 months from the date of marriage.
Sukanya Samriddhi Yojana FAQs
1. What happens in the case of the death of the parent or legal guardian of the girl child?
In the event of death of the legal guardian or the parent of the girl child, the scheme is either closed and the proceeds are paid to the family or to the girl child. Or, the plan can continue with the deposited sum after the maturity period and the deposited amount will continue to gain interest until the kid completes the age of 21.
2. Can I avail a loan from my Sukanya Samriddhi Yojana account?
No loan option is currently available under your Sukanya Samriddhi Yojana account. However, you can withdraw up to 50% of the accrued amount once the girl reaches 18 years of age towards her education expenses.
3. Can I transfer the Sukanya Samriddhi Yojana account to a different city?
Yes, the account can be transferred from one post office to another, one bank to another or between post office and banks, upon submission of valid address proof.
4. What will happen if I fail to deposit the minimum account in one year?
In case of failure to deposit the minimum amount in any one year, a penalty of Rs.50 shall be charged on the account.
5. I already have an account on my daughter’s name. Can I convert it into a Sukanya Samriddhi Yojana account?
No, existing accounts cannot be converted into a Sukanya Samriddhi Yojana account. You need to submit a new application and open a fresh account under the scheme.
6. Maximum of how many accounts are allowed per parent?
Parents of girl children under the age of 10 can open this account. Only 2 accounts allowed per family; exemptions allowed in case of twins or triplets.
7. What is the difference between the Sukanya Samriddhi Yojana account and a regular recurring deposit account?
The primary difference is that Sukanya Samriddhi Yojana account is an EEE account where the principal amount, accrued interest and the withdrawal amount are all exempted from tax. Also, the rate of interest is higher than a regular recurring deposit scheme.
8. Is there a difference between opening the Sukanya Samriddhi Yojana account in a private sector bank, public sector bank or at the post office?
Major private and public sector banks are authorized to open the Sukanya Samriddhi Yojana account for its customers. However, the scheme is governed by the guidelines set by the central government. There is no difference between opening the account at any of the outlets.
Latest & Update Sukanya Samriddhi Yojana Account News
Interest Rates for Sukanya Samriddhi Yojana to Remain at 7.6%1 Apr 2021
The Finance Ministry had earlier announced that it’s reducing the interest rates for the popular Sukanya Samriddhi Savings Schemes for Girl Children. As per this earlier order, the interest rate was reduced to 6.9% from the prevailing 7.6%. However, ...
Read moreThe Finance Ministry had earlier announced that it’s reducing the interest rates for the popular Sukanya Samriddhi Savings Schemes for Girl Children. As per this earlier order, the interest rate was reduced to 6.9% from the prevailing 7.6%. However, the Finance Minister has tweeted stating that the interest rate cuts were an oversight and the order has been reversed. This is a huge relief for SSY account holders as of now the interest rates will remain at 7.6%.
You can soon open a Sukanya Samriddhi Account at a Private Bank near You1 Mar 2021
Happy News for private bank customers. You can now open a Sukanya Samriddhi Yojana (SSY) account for your daughter at your bank itself. Until now, the SSY account was available only at select private-sector banks. With the central government lifting ...
Read moreHappy News for private bank customers. You can now open a Sukanya Samriddhi Yojana (SSY) account for your daughter at your bank itself. Until now, the SSY account was available only at select private-sector banks. With the central government lifting the restrictions of granting government businesses to private banks, you can soon open the SSY account at any private-sector bank. The SSY is a government-backed savings scheme for parents of girl children aged under 10. To know more about this scheme features and benefits, check out the info on this page.