If you’re looking for a viable savings scheme for your girl child, Sukanya Samriddhi Yojana is a good scheme to put your money in. This is a government savings scheme which can be opening in the name of your girl child.
In this post, we will discuss the updated Sukanya Samriddhi Yojana interest rates, eligibility, features and more.
What is Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana is a deposit scheme, specifically meant for the girl child. It aims to encourage parents to build a fund and invest in the future of their girl child. It operates under the Beti Bachao, Beti Padhao campaign which aims to promote women empowerment.
You can open an account under Sukanya Samriddhi Scheme at any post office in India and in authorized commercial banks in India.
Sukanya Samriddhi Yojana Interest Rate
Sukanya Samriddhi Yojana (SSY) interest rate: 7.6% (effective from 1st April 2020)
If you open a Sukanya Samriddhi Yojana Post Office account, you will earn interest at the rate of 7.6% till the time which will be compounded annually. This interest however will be payable only at maturity or at the time of premature withdrawal.
Sukanya Samriddhi Account: Bank List
The following-listed are the banks where you can open Sukanya Samriddhi Accounts (for not more than 2 girls):
Sukanya Samriddhi Yojana: Features
The following are the prime features of Sukanya Samriddhi Yojana:
- Minimum Investment Amount: Rs 250
- Maximum Investment Amount: Rs 1.5 lakhs
- Tenure: 21 years
- When can I open SSA: When the girl child is born, till she attains 10 years of age
- Transferability: Can be transferred from/to any post office or bank in India
- Premature Closure: If the girl reaches 18 years old and marries
Did You Know?
There are 2,73,033 Sukanya Samriddhi Accounts in India, as of November 2022. Data as per the public data by the Department of Posts, Ministry of Communications, Government of India.
Sukanya Samriddhi Scheme Tax Benefits
The investment amount, i.e. the amount deposited in the Sukanya Samriddhi Yojana scheme, can be claimed as an income tax deduction of up to Rs 1.5 lakhs, u/s 80C of the Income Tax Act, 1961.
The interest received on Sukanya Yojana account is exempt or free from tax as per the rules of section 10 of the IT Act, ’61.
How to Invest in Sukanya Samriddhi Yojana Scheme?
If you want to avail the benefits of the Samriddhi yojana scheme, you need to be aware of a lot of details. First and foremost, you need to be aware of whether or not you are eligible for Sukanya Samriddhi Yojana.
Who is Eligible for Sukanya Samriddhi?
You can open an SSY account or Sukanya Yojana account only if you are a parent or legal guardian of a girl child who is younger than 10 years. Please note that this child should be an Indian citizen. This scheme is not available for NRIs.
Account under Sukanya Yogna may be opened for a maximum of two girl children in one family.
Sukanya Samriddhi Account: Documents Required
Here’s a list of important documents you need to submit to open an account:
- Sukanya Samriddhi Account Opening Form
- Birth Certificate of the girl child
- Photo ID of the guardian
- Address Proof
- KYC documents
- Investment amount in cash or cheque
How to Withdraw Funds from Sukanya Yojana Account?
The entire amount in the SSY account, including the accumulated interest, can be taken out by the girl child, once the duration of the scheme is complete. That said, the following are valid grounds for withdrawal of funds from Sukanya Yogna before maturity:
- 50% of the funds for education of the account holder after she attains 18 years of age or passes 10th standard
Parent/guardian/ account-holder needs to furnish documentary proof. Admission proof in educational institution or a fee-slip from such institution indicating such financial requirement is required. This amount can be withdrawn as lumpsum or in annual installments of not more than 5 years.
However, an SSY account can be closed prematurely under the following conditions:
- death of the account holder (Form 2)
- ill-health of account holder (as certified by authorised medical practitioner)
The closure of the account may also be permitted before completion of twenty-one years if the account holder on an application makes a request for such closure for the reason of intended marriage of the account holder on furnishing of a declaration duly signed on non-judicial stamp paper attested by the notary supported with proof of age confirming that the applicant will not be less than eighteen years of age on the date of marriage.
Documents Required to Withdraw Funds from Sukanya Yojana Account
- Withdrawal application form
- ID proof
- Address proof
- Documents that certify citizenship
Sukanya Samriddhi Yojana: FAQs
If your girl child is below 10 years old, then you, as her parent or legal guardian, will be the account holder. She can have complete ownership of the account once she turns 18.
Yes, you can claim up to Rs 1.5 lakhs as income tax deductions for the amount you deposit in Sukanya Yogna account.
No. The interest earned on an account with Sukanya Samriddhi Yojana is not taxable u/s 10 of the Income Tax Act, 1961.
Sukanya Samriddhi Yojana account can be opened in any post office in India, SBI, HDFC and other banks authorised by the Govt. of India.
In the face of an unfortunate demise of the girl child, the guardian can withdraw funds from the SSY account.
Read more about Post Office Investment.
