Sukanya Samriddhi Yojana (SSY) was introduced by the government of India as part of the ‘Beti Bachao, Beti Padhao’ effort. The parents or guardians of a girl under 10 years of age may secure her financial future by enrolling in this deposit scheme.
You are eligible to open a Sukanya Samriddhi Yojana (SSY) account at any public or private sector bank for 21 years at any post office or bank. Starting on the day the account is opened, the investment term under SSY lasts for 21 years. So, let’s learn more about Sukanya Samriddhi Yojana details in the article below.
What is Sukanya Samriddhi Yojana (SSY)
In an effort to help families achieve financial security for their daughters, the government-backed Sukanya Samriddhi Yojana (SSY) was introduced as part of the ‘Beti Bachao – Beti Padhao’ scheme. Any public or private bank offers the facility to open an SSY account for girls who are 10 years old or younger.
The account allows you to invest in it for 21 years. The SSY scheme has an annual compounded interest rate of 8%. You may get a tax deduction of up to 1.5 lakh rupees if you invest in SSYs via Section 80C of the Income Tax Act.
Sukanya Samriddhi Yojana Interest Rates
For the first three months of 2024, the Sukanya Samriddhi Yojana interest rate 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 the Sukanya Samriddhi Yojana Scheme
You may get these benefits by opening an account in Sukanya Samriddhi Yojana:
● Higher Interest Rates
Compared to other savings schemes, Sukanya Samriddhi Yojana interest is high. Presently, an interest rate of 8.2% is in place. Since the government changes the applicable interest rate quarterly, your investment’s interest is compounded yearly. This means your return on investment will increase by a factor of multiples.
● Tax Benefits
Section 80C of the Income Tax Act allows a person to deduct eligible business costs up to 1.5 lakh rupees. The policyholder also does not have to pay taxes on the interest or the amount they obtain when the insurance matures.
● Benefit on Maturity
The policyholder will obtain the whole principal amount plus interest after the policy’s maturity date has passed. This lump amount will be distributed to your daughter when the plan matures.
● Seamless Transfer
You may change the condition of the Sukanya Samriddhi account associated with a girl child when you change the person administering the account. With the proper paperwork, you may transfer your SSY money from the post office to your bank or vice versa in no time.
● Easy Deposits
One notable aspect of the Sukanya Samriddhi Yojana is the flexibility of the deposit limit. Parents or legal guardians of the girls have a choice over the deposit amounts, which may range from Rs.250 to Rs.1.5 lakhs.
Tax Benefits of Sukanya Samriddhi Yojana (SSY)
You may put money down for your daughter’s future and perhaps save on taxes with the Sukanya Samriddhi Yojana post office. The tax benefits for SSY include:
- You may claim your contributions to the Sukanya Samriddhi Yojana post office
as a tax deduction under Section 80C of the Income Tax Act.
A maximum deduction of 1.5 lakh rupees is allowed. You may claim a tax deduction for the whole ₹1.5 lakh you put into the plan in a certain fiscal year.
- Interest earned on an investment is also exempt from taxation.
- You will not be taxed on the amount you withdraw or the day it matures.
Since your Sukanya Samriddhi investment is an EEE, it is not subject to taxes, which means you may put more money into your daughter’s future.
Eligibility Criteria for Sukanya Samriddhi Yojana
The eligibility criteria for Sukanya Samriddhi Yojana include:
- Any Indian girl under the age of 10 can be enrolled by her family member or legal guardian.
- Each girl can have only one SSY account.
- Parents or legal guardians are limited to no more than two accounts per household if they have two daughters.
Documents Required
To open an SSY account, here is a list of the documents required:
- The birth certificate of the girl
- Guardian’s identity proof
- Guardian’s address proof
How to Invest in Sukanya Samriddhi Yojana (SSY)?
Now that you know the foundations of the Sukanya Samriddhi Yojana, let’s look at how to open a Post office Sukanya Samriddhi Yojana account.
Visiting any approved bank branch or post office is all it takes to enrol your daughter in the Sukanya Samriddhi scheme. A post office Sukanya Samriddhi Yojana account may be opened at any participating bank or Post Office.
How to Open an SSY Account Offline?
SSY scheme account can be opened in two ways:
- Visiting preferred bank branch
- Visiting post office
Steps to open by visiting preferred bank branch
The simple steps to open an SSY scheme account at your bank are as follows:
- Determine the nearest Bank branch.
- Collect the application form for SSY. Fill it out and submit it with the required paperwork, like – the birth certificate of the girl, proof of address, and identification of the guardian.
- Make a down payment of at least Rs. 250 and no more than Rs.1.50 lakhs. A demand draft, a cheque, or even just cash will do.
- The bank will handle the application after you pay them.
- Your Sukanya Samriddhi Yojana scheme account may be activated after your application is approved. You will also get a passbook when you open an account with Sukanya Samriddhi.
Steps to open by visiting the Post office
Follow these easy steps:
- Visit the nearby local post office.
- Collect the account opening form. After you’ve filled out the form, be sure to include the beneficiary’s birth certificate, documentation proving the guardian’s or parent’s residence, and identification.
- After you’ve submitted, pay the amount you want to invest in to start the account. You may pay the first instalment with cash, a cheque, or a demand draft.
- After the application is reviewed by the post office, a passbook will be issued to you.
How to Open the SSY Account Online?
Neither the bank nor the post office allows customers to open Sukanya Samriddhi Yojana scheme accounts online. But, once the account is set up, you can make online deposits.
Sukanya Samriddhi Yojana Withdrawal Rules
Some of the SSY withdrawal rules include:
- When a girl reaches the age of 18 or completes the tenth standard, whichever comes first, she is eligible to access her SSY account funds. The account holder has the option to withdraw up to 50% of the money from the account in the fiscal year ending before the application year to pay for their schooling. To do this, they must complete and submit Form 3 to the relevant bank or post office.
- A fee slip or acceptance letter might serve as supporting paperwork when applying to withdraw money from an educational institution.
- Subject to the specified limitation, the withdrawal may be made in one lump sum or in instalments no more than once per year for a maximum of five years, as per the terms of the Sukanya Samriddhi Account Scheme.
Rules for Premature Withdrawal from SSY Account
Even if the funds have not yet matured, the depositor can withdraw monies from their account. These rules were put in place to make it easier to get money out of SSY accounts early:
- The girl is free to leave the scheme before her wedding day arrives. However, she may only apply for the withdraw either 30 days before the wedding or 60 days after the ceremony if she wants to use it. Also, she has to provide proof of her marriage.
- The girl may take the rest of the money if her guardian dies. However, she must provide the death certificate before proceeding.
- You can close an account once the policyholder’s residency status changes to that of a non-resident. They have 30 days to inform the bank or postal service.
Key Pointers Related to the Sukanya Samriddhi Account Scheme
Important rules for SSY account are as follows:
- The main objective of the scheme is to help girls by providing them with a safe option to save for their future expenses, such as education and marriage.
- If a girl is less than 10 years old, her parent or legal guardian may open an account for her.
- Any of India’s officially recognised banks or post offices will do to open an account. Birth certificates of the girl and Know Your Customer forms for parents or legal guardians are required.
- Annual deposits must be between Rs. 250 (the least) and Rs. 1.5 lakh (the maximum) according to the regulations.
- Quarterly, the government announces interest rates for SSY accounts. Once a year, the account gets the benefit of compound interest.
- Contributions to SSY accounts may be written off as a business cost under Section 80C of the Income Tax Act, and interest and maturity gains are not taxable.
- The account will remain locked for 21 years from the opening date or until the girl wants to withdraw the money after she turns 18 for marriage or education purposes.
FAQ’s:-
A passbook is sent to account holders upon registration for the Sukanya Samridhi Yojana. You may record every transaction in the passbook, including deposits, SSY interest rate,and withdrawals. By maintaining tabs on your passbook, you can see your account balance.
You may open an SSY account at any of the participating public and commercial banks or post offices in your area.
Foreign nationals residing in India are not eligible to open an SSY account. You can only create an account if you are a citizen of India.