The Indian government has started a number of savings schemes that you may use to put money aside for your goals. Known as a fixed-income plan, most of these plans provide a predetermined interest rate on the funds you deposit.
Among this scheme, the Sukanya Samriddhi Yojana (SSY) offers a guaranteed return on contributions. Therefore, let’s learn more information about the benefits, features, eligibility criteria, Sukanya Samriddhi Yojana interest rates and much more in the article below.
What is Sukanya Samriddhi Yojana?
The Sukanya Samriddhi Yojana is a government-run savings scheme in India that targets young girl children. As part of the ‘Beti Bachao Beti Padhao’ initiative, this scheme has been helping families out financially since 2015 so that their daughters may go to college and eventually get married.
Parents or legal guardians may open and maintain an SSY account for a girl up to the age of 10. The high-interest rate, tax benefits, and various deposit possibilities offered by SSY make it an attractive investment option for parents with daughters.
Sukanya Samriddhi Yojana Interest Rates 2024
The government reassesses the SSY interest rate every three months. For the first three months of 2024, the interest rate of Sukanya Samriddhi Yojana is 8.2%.
Sukanya Samriddhi Yojana Interest Rates: Historical
Here is a list of the Sukanya Samriddhi Yojana interest rate history–
Time Period | SSY Interest Rate (% annually) |
Oct to Dec 2023 (Q3 FY 2023-24) | 8.0 |
Apr to Jun 2023 (Q1 FY 2023-24) | 8.0 |
Jan to Mar 2023 (Q4 FY 2022-23) | 7.6 |
Oct to Dec 2022 (Q3 FY 2022-23) | 7.6 |
Jul to Sep 2022 (Q2 FY 2022-23) | 7.6 |
Apr to Jun 2022 (Q1 FY 2022-23) | 7.6 |
Jan to Mar 2022 (Q4 FY 2021-22) | 7.6 |
Oct to Dec 2021 (Q3 FY 2021-22) | 7.6 |
Jul to Sep 2021 (Q2 FY 2021-22) | 7.6 |
Apr to Jun 2021 (Q1 FY 2021-22) | 7.6 |
Jan to March 2021 (Q4 FY 2020-21) | 7.6 |
Oct to Dec 2020 (Q3 FY 2020-21) | 7.6 |
Jul to Sep 2020 (Q2 FY 2020-21) | 7.6 |
Apr to Jun 2020 (Q1 FY 2020-21) | 7.6 |
Jan to March (Q4 FY 2019-20) | 8.4 |
Oct to Dec 2019 (Q3 FY 2019-20) | 8.4 |
Jul to Sep 2019 (Q2 FY 2019-20) | 8.4 |
Apr to Jun 2019 (Q1 FY 2019-20) | 8.5 |
Jan to March 2019 (Q4 FY 2018-19) | 8.5 |
Oct to Dec 2018 (Q3 FY 2018-19) | 8.5 |
Jul to Sep 2018 (Q2 FY 2018-19) | 8.1 |
Apr to Jun 2018 (Q1 FY 2018-19) | 8.1 |
Jan to March 2018 (Q4 FY 2017-18) | 8.1 |
Oct to Dec 2017 (Q3 FY 2017-18) | 8.3 |
Jul to Sep 2017 (Q2 FY 2017-18) | 8.3 |
Apr to Jun 2017 (Q1 FY 2017-18) | 8.4 |
Benefits of Investing in Sukanya Samriddhi Yojana
Among the many benefits offered by Sukanya Samriddhi Yojana, some of them are:
● Simple Steps to Open an Account
You may open an SSY account with as little as 250 rupees and as much as 1.5 lakh rupees in a single fiscal year. The procedure is simple and uncomplicated. Due to the low minimum contribution, this account is available to individuals with a wide range of incomes.
● Saving Money on Taxes
In addition to safeguarding a girl child’s financial future, opening an SSY account opens the door to three distinct tax advantages. Contributions up to Rs.1.5 lakh, interest paid on contributions, and the amount due at maturity are all free from taxes according to Section 80C of the Income Tax Act.
● Good Interest Rate
When compared to other investment plans, the Sukanya Samriddhi Yojana post office interest rate is 8.2% interest rate is unparalleled. There is a quarterly adjustment to Sukanya Samriddhi Yojana current interest rate. Because of the alluring post office Sukanya Samriddhi Yojana interest rate, the individual may eventually get a sizable return on investment.
● Protects the Funds Allotted to Girls’ Education
An individual may begin saving for the future of a girl child with the help of the Sukanya Samriddhi Yojana. The scheme also helps defray the cost of a girl’s college education because, upon reaching the age of 18, she may withdraw half of her funds while the other half remains in the account.
● Early Withdrawals
Early withdrawals are permitted from an account in order to assist with a girl’s education expenses after she turns 18.
Other Key Features of Sukanya Samriddhi Yojana
The following features make the SSY scheme unique:
- Anyone who has a daughter under the age of 10 can open an account on her behalf.
- There is a competitive interest rate on Sukanya Samriddhi Yojana that is adjusted often. According to the latest statistics, the interest rates are 8.2% per year
- SSY investments are eligible for a tax deduction under Section 80C of the Income Tax Act. At maturity, you won’t have to pay taxes on either the principle or the interest.
- At the age of 18, the girl child is eligible to make an early withdrawal of up to half of the account balance in order to cover the costs of higher education.
Sukanya Samriddhi Yojana Eligibility
You need to be eligible before you can open an SSY account. The eligibility criteria is as follows:
- An account may be opened on behalf of the girl by any adult who is legally responsible for her.
- The girl should be under 10 years of age
- Each girl is only allowed to open one account.
- A family may open two individual SSY accounts if they have two daughters.
How to Invest in Sukanya Samriddhi Yojana
There are two ways to apply for an SSY account:
- Visiting the preferred bank’s branch
- Visiting post office
Steps to open by visiting preferred bank branch
The simple steps to open an SSY account at your bank are as follows:
- It all starts with visiting a licensed bank office in your area to apply for a Sukanya Samriddhi account.
- Take the form, fill it out and submit the necessary paperwork, which includes a photo of the child, evidence of identity and address of the legal guardian, and a copy of the child’s birth certificate.
- Pay the amount you want to invest in. You may pay with cash, a check, or a demand draft.
- The application will be reviewed by the bank after you provide the required documents.
Steps to open by visiting Post office
Another option for opening a Sukanya Samriddhi account is to go to your neighbourhood post office. It is critical to follow these steps:
- Find the post office that is near to you.
- Collect the application form. Full completion of the Sukanya Samriddhi Yojana application is required. Form SSA-1 is the name of this document. At any post office, you may retrieve this.
- Before you submit your application, make sure you have all of the necessary documents, such as identification and proof of residence, on hand.
- The first payment must be made. Cash, a demand draft, or a check will all suffice.
- A passbook will be provided by the post office upon examination of the account and application.
Sukanya Samriddhi Yojana Calculator
The functioning of the Sukanya Samriddhi Yojana interest rate calculator is based on the basic principle of compound interest. Interest on the initial investment and any further payments made annually up to the plan’s termination date are both included in the computation. If you use the SSY interest rate calculator, you may see how your money could grow over time and use that data to guide your decisions.
Factors Considered by the Calculator:
- Initial Debit
The SSY interest rate calculator takes into account the original investment, among other things.
- Duration
The plan reaches its maturity after 21 years from the day the account was started. However, partial withdrawals are feasible once the girl reaches the age of 18.
- Interest Rate
For its calculations, the SSY interest rate calculator makes use of the current interest rate, which is subject to quarterly adjustments by the government. Once a year, the account gets the benefit of compound interest.
FAQ’s:-
The calculator typically takes inputs such as the initial deposit amount, frequency of deposits, and the current interest rate. Using these inputs, it calculates the maturity amount based on the compound interest formula.
The SSY account can be closed prematurely in the event of the girl child’s marriage after attaining the age of 18. A request for premature closure needs to be submitted along with supporting documents.
A fee of fifty rupees will be levied if the account does not receive the required amount.
Being an entirely exempt (EEE) investment means that all aspects of an SSY investment, including the principal, interest, and maturity amount, are not subject to taxes.
The following documents are generally required:
1) Birth certificate of the girl child
2) Identity and address proof of the parent/guardian
3) Passport-sized photographs of the girl child and the parent/guardian
A penalty of Rs. 50 is levied for delayed deposits in an SSY account. It’s crucial to make regular contributions to avoid penalties and ensure the account remains active.