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Sukanya Samriddhi Yojana

Sukanya Samriddhi Account

Last Updated 25th Sep 2020

  • SSY or Sukanya Samriddhi Account is a savings scheme for the girl child aged upto 10 years for a tenure of upto 21 years.
  • Parents or legal guardians need to make a minimum investment of ₹ 250 and can invest upto ₹ 1.50 Lakh every year under the sukanya samriddhi scheme.
  • Under Sec 80C of the Income Tax Act, Sukanya Samriddhi Yojana comes with EEE (exempt, exempt, exempt) tax feature.
  • SSY account matures after the age of 21 years.
  • Premature withdrawal of funds is allowed as the girl attains the age of 18 years.
  • Sukanya Samriddhi Yojana account offers an interest rate of 7.60%, last revised on 04 Jul 2020.
Calculate SSY Maturity Amount

Sukanya Samriddhi Account Details

Daughters are always special to parents. There’s a way you can make them feel special. Sukanya Samriddhi Yojana is a saving scheme initiated by the Government of India that prompts parents to save for their girl child. These savings can be made for education and marriage purposes. The scheme was implemented on January 22, 2015, under the Beti Bachao, Beti Padhao campaign. The general public can avail the Sukanya Yojana by opening a savings account for their girl child in their nearest post office or any authorized commercial bank. However, the account for the sukanya scheme can be opened by the parents or guardians, from the time the girl child is born to the time the child ages 10.

Sukanya Samriddhi Yojana Interest Rate 2020

Financial Security to Girl Child – The amount in Pradhan Mantri Sukanya Yojna can come in handy for meeting higher education, marriage and other expenses of the girl child once she is 18.

Attractive rate of interest and fast capital growth – The sukanya samriddhi yojana scheme offers an attractive rate of interest similar to small savings schemes. Government announces the rate of interest at the beginning of each quarter of the financial year. Currently the Sukanya Samriddhi Yojana Interest rate is higher in comparison to PPF.

SSY and PPF Current and Past Interest Rates Comparison

Period SSY Interest Rates PPF Interest Rates
1st July, 2020 onwards 7.60% 7.10%
1st April, 2020 - 30th June, 2020 7.60% 7.10%
1st January, 2020 - 31st March, 2020 8.40% 7.90%
1st October, 2019 - 31st December, 2019 8.40% 7.90%
1st July, 2019 - 30th September, 2019 8.40% 7.90%
1st April, 2019 - 30th June, 2019 8.50% 8.00%
1st January, 2019 - 31st March, 2019 8.50% 8.00%
1st October, 2018 - 31st December, 2018 8.50% 8.00%
1st July, 2018 - 30th September, 2018 8.10% 7.60%
1st April, 2018 - 30th June, 2018 8.10% 7.60%
1st January, 2018 - 31st March, 2018 8.10% 7.60%
01st October 2017 - 26th December 2017 8.30% 7.80%
01st July 2017 - 30th September 2017 8.30% 7.80%
01st April 2017 - 30th June 2017 8.40% 7.90%

Eligibility Criteria for Sukanya Samriddhi Scheme

Sukanya samriddhi yojana details regarding eligibility are as following:

  • Parents or guardians of a girl child upto 10 years of age can open an account in the name of the girl.
  • At the time of opening the account, you need to deposit at least ₹ 250 by cash.
  • Each financial year (April to March), you can deposit minimum ₹ 250 and maximum ₹ 1.50 Lakh/- by cheque, DD or Cash. To maximize interest income on the account, it is advisable to invest at the beginning of the year or as soon as possible.
  • You can deposit contributions till the girl child reaches 14 years of age. Deposits cannot be made once the child is 14 years old.

Features of Sukanya Samriddhi Account

Sukanya Samriddhi Yojana is a savings scheme launched by the Prime Minister to secure the future of girl children in India. The Indian parents can deposit the amount in the name of their girl child to fund the expenses of their education and marriage. The features of Sukanya Samriddhi Scheme are as follows:

  • Higher Interest Rates: Interest rates on the SSY scheme is comparatively higher than other savings schemes.
  • Tax Benefits: A Sukanya Samriddhi Account offers many tax benefits to the account holders, unlike other investment options.
  • Multiple Accounts: Sukanya Yojana allows the parents to open a maximum of two accounts for their child. In the case of twins, they can even open three accounts.
  • Deposit Limit:Under the Sukanya samriddhi yojana, accounts can be opened even with a minimum amount of ₹ 250. However, the maximum deposit account is ₹ 1.50 Lakh.

Sukanya Samriddhi Yojana (SSY) Application Form

In order to open an account under the Sukanya Samriddhi Yojana, one is required to fill up the SSY form. The Sukanya yojana application form can be collected from any bank or post office. In addition to that, one can also fill the application form for the sukanya samriddhi yojana online, by downloading it from the Reserve Bank of India’s website. The Sukanya samriddhi yojana form requires one to fill various details as listed below:

  • Details of the guardians or parents opening the SSY account on behalf of the girl child
  • Name of the girl child
  • Date of birth of the girl child
  • Deposit amount
  • Details of cheque or DD number, if required
  • Details of basic KYC documents such as PAN, Aadhar or Voter ID card
  • Birth certification details of the girl child such as certificate number and date of issuance of certificate
  • Current and permanent address of the parents or guardians, as applicable

Tax Benefits on Sukanya Samriddhi Account

Fully exempt from tax at all steps - The SSY scheme is one of the very few schemes under the EEE (Exempt, exempt, exempt) category.

  • First exemption: Contribution under this scheme entitled for deduction under Section 80C of Income Tax Act.
  • Second exemption: Interest earned exempted from tax.
  • Third exemption: Maturity or withdrawal amount also tax free.

So, unlike fixed deposits and NSC, the Sukanya samriddhi yojana will not suffer tax at any stage. Thus, the money can grow faster without being eaten away as income tax.

Sukanya Samriddhi Yojana Withdrawal Rules

  • The sukanya samriddhi scheme matures when the girl child reaches 21 years of age. Any time thereafter, the money accumulated in the account including principal and interest may be withdrawn.
  • Premature withdrawal upto 50% of the balance in the Sukanya Samriddhi Yojana account is allowed for higher studies of the girl once the girl reaches 18 years of age.
  • The account will continue to earn interest till such time as it is closed. So, in case the girl chooses to keep the money in the account even after she reaches 21 years of age, she will continue to earn sukanya samriddhi yojana interest rate on the same.

Documents for SSY Account

  • SSY account opening form
  • Birth certificate of girl child
  • Address proof of parent/ guardian – such as voter card, passport, aadhaar card, fixed line telephone bill,
  • Photo ID proof of parent/ guardian – such as PAN, voter card, passport

FAQs

What is the SSY scheme?

Sukanya Samriddhi Scheme is a Pradhan Mantri Sukanya Yojana in the form of a savings account facility offered by the Government of India. It is exclusively designed for parents of girl children, who want to save funds for their daughter’s marriage and education.

How interest is calculated on SSY?

The interest rate on Sukanya Samriddhi Yojana is regulated every quarter by the Central Government. The interest earned on SSY is calculated using the maturity date, the interest rate, and the amount of deposit made. Presently, the interest rate on SSY is 7.60%.

Can a Sukanya samriddhi account be opened online?

Yes, the Sukanya Samriddhi Account can be opened online. This can be done by logging in to the bank’s net banking facility. The online facility for Sukanya Samriddhi Scheme allows easy documentation and instant account opening.

How much can you deposit in Sukanya samriddhi Yojana?

Minimum amount that can be deposited under the Sukanya Samriddhi Yojana is Rs. 250, and the maximum limit that can be deposited in a year is Rs 1.5 lakhs.

Can I continue investing in SSY if my daughter and I move to another country?

Sukanya Samriddhi Yojana is designed only for the residents of India. If somebody settles down abroad and acquires the NRI status, then they cannot invest any further in the SSY.

Can parents withdraw money from Sukanya Samriddhi Account?

The account holders can withdraw money from the Sukanya Samriddhi account, only after the girl child turns 18. Prior to that, no withdrawals are allowed.

What is the maturity period of SSA?

The maturity period of a Sukanya Samriddhi account is 21 years, from the date of opening the account.

What is the best saving scheme for a girl child?

Sukanya Samriddhi Saving Scheme is the best scheme for a girl child. The scheme is regulated by the Government and provides higher interest rates than a child FD. Also, it provides tax benefits up to Rs. 1.5 lakh as per section 80C of the Income Tax Act.

Is Sukanya Samriddhi Yojana applicable for NRIs also?

Sukanya Samriddhi Account is not applicable to NRIs. It can be availed only by the residents of India.

Can I open the Sukanya Samriddhi Yojana account in the post office? 

Yes, you can open the Sukanya Samriddhi Yojana account in any post office or in a commercial bank that provides this savings facility.

Are Sukanya Samriddhi Yojana interest rates the same in post offices and banks?

A Sukanya Samriddhi Yojana offers the same interest rates whether opened in either post office or Bank. The interest rates on SSY are regulated by the Central Government and are equally applicable to all post offices and commercial banks.

Can I make online payments for the Sukanya account?

Yes, you can make online payments for Sukanya Samriddhi accounts through India Post Payments Bank (IMPB) or through the net banking facility.


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