sukanya samriddhi yojana

As a part of the Beti Bachao Beti Padhao campaign, Prime Minister Narendra Modi launched a scheme called ‘Sukanya Samriddhi Yojana (SSY)’, the campaign literally translates to ‘Girl Child Prosperity Scheme’ in line with the above objectives. It was launched on 22 January 2015 in Panipat, Haryana.

What is Sukanya Samriddhi Yojana (SSY)?

In order to majorly address the issue of the declining child sex ratio in our country, the Government of India launched a social campaign on 22 January 2015. The Beti Bachao Beti Padhao (BBBP) campaign sends the message ‘Save girls, educate the girl child’. This is a national initiative jointly run by the Ministry of Women and Child Development, the Ministry of Health and Family Welfare, and the Ministry of Human Resource Development.

BBBP aims to achieve the following:

• To stop gender discrimination against children and abolish the practice of sex determination.
• To ensure the survival and protection of girls.
• To ensure higher participation of girls in education and other areas.

SSY aims at tackling a major problem associated with the girl child i.e., the financial burden related to education and marriage. It is focused on securing a bright future for the girl child in India by facilitating the parents of a girl child in building a fund for the proper education and carefree marriage expenses of their child. SSY has introduced the Sukanya Samriddhi Account for this very purpose.

Sukanya Samriddhi Yojana Age Limit and Maturity Period

Opening SSY Account

A girl child can only have one SSY account. SSY accounts can be opened at any post office or authorised commercial bank branch. It can be opened till the girl child attains the age of 10 years.

Beneficiary of SSY

Any girl child who is a resident Indian can be a beneficiary under SSY from the time of opening the account till the time of maturity/closure.

Deposits under SSY

The guardian can deposit the amount and operate the account till the girl child attains the age of 18. The SSY account shall be mandatorily operated by the girl child after she attains the age of 18 years. The minimum deposit amount for an SSY account is Rs.250, thereafter in multiples of Rs.50, and the maximum deposit is Rs.1,50,000 in every financial year, up to 15 years. Deposits can be made through cash, cheque, demand draft or online transfer.

Interest on Deposits

The rate of interest for the 2nd quarter of FY 2024-2025, i.e. 1 July 2024 to 31 September 2024 is 8.2% p.a. The interest earned on this account is tax-free. 

The entire deposit in ‘Account under default’ (where a minimum amount of Rs.250 per year has not been deposited), which is not regularised within the prescribed time, would earn interest till the maturity date of the account. ‘Account under default’ can be regularised within 15 years of Account opening on payment of a penalty of Rs.50 per default year.

No interest is payable after the completion of tenure of the SSY, i.e after 21 years from account opening. No interest accrues after the girl child becomes a non-citizen or a non-resident of India. Any deposit made above the maximum cap, i.e. Rs.1,50,000 per year will not earn any interest and can be withdrawn anytime by the depositor

Maturity Period of SSY

The maturity period of SSY is 21 years from the account opening or upon her marriage after attaining 18 years. However, contributions have to be made for first 15 years only. Thereafter, the SSY account will continue to earn interest until maturity.

Benefits of Sukanya Samriddhi Yojana

• Low Minimum Deposit: The minimum deposit required to be made in a SSY account is Rs.250 per financial year. You can make deposits as per your convenience up to Rs.1.5 lakh per fiscal year. The payments seem very affordable for people from all sections of society. Even if you happen to miss out on paying for a year, a penal charge of mere Rs. 50 will be levied on the missed minimum payment of Rs.250 and the account will be made normal again.
• Attractive Interest Rate: SSY accounts enjoy an 8.2% per annum compounded interest rate (for the period 1 July 2024 to 31 September 2024) - one of the highest among small savings schemes.
• Tax Benefits: You can enjoy full tax deduction on principal invested up to ₹1.5 lakh per year under Section 80C of the Income Tax Act. Both interest and maturity amounts are tax-free.
• Long Tenure: Secure your daughter's future with a 21-year maturity period or until her marriage after 18 years (whichever is earlier).
• Educational Expenses Covered: You can withdraw 50% of the account balance as of the previous financial year’s end to meet the educational expenses of your girl child. This can be availed by submitting proof of admission only after the girl child has attained 18 years of age or has passed the tenth standard.
• Guaranteed Returns: Since SSY is a government-backed scheme, there is a guarantee of returns upon its maturity.
• Convenient Transfer: The SSY account can be transferred from any post office to a bank or vice-versa anywhere in India.

Tax Benefits of Sukanya Samriddhi Yojana

In order to encourage investments in SSY, the SSA has also been provided with certain tax benefits:

• Investments made in the SSY scheme are eligible for deductions under Section 80C, subject to a maximum cap of Rs 1.5 lakh.
• The interest that accrues against this account which gets compounded annually is also exempt from tax under Section 10 of the Income Tax Act.
• The proceeds received upon maturity/withdrawal are also exempt from income tax.

Sukanya Samriddhi Yojana Interest Rate 2024

Interest rates for Sukanya Samriddhi Yojana is 8.2% for July to September 2024. It is determined quarterly. Below is a historical trend of interest rates(%) under Sukanya Samriddhi Yojana.

Calculation of Sukanya Samriddhi Yojana Interest

The interest for the SSY account is calculated on the lowest balance for the calendar month, i.e. between the fifth day of the month and the end of the month. The interest will be credited once, at the end of each financial year.

Generally, you can use the below formula to calculate the interest earned on an SSY account:

A = P(1+r/n)^nt

Here:

P = Initial Deposit
r = Rate of interest
n = Number of years the interest compounds
t = Number of years
A = Amount at maturity

Since the interest accrued on an SSY account is compounded on a yearly basis, it may not be a simple task to manually calculate the interest. Instead, you can use our Sukanya Samriddhi Yojana Calculator to arrive at the maturity amount upon entering the details, such as probable investment amount per year, the age of the girl child, and the account commencement year.

Sukanya Samriddhi Yojana Eligibility

• Only parents or legal guardians of a girl child can open an SSY account
• The girl child must be a resident Indian and below the age of 10 at the time of opening the account.
• Only one account can be opened for a girl child.
• Only two SSY accounts can be opened by a family, i.e. one for each girl child.
• Sukanya Samriddhi Account can be opened for more than two girls where a family has a girl child born in twins/triplets in the first or second birth in a family.

How to Open a Sukanya Samriddhi Yojana Account in a Post Office?

You can open a Sukanya Samriddhi Yojana (SSY) account with a participating bank or a Post Office branch. You need to follow the below procedure to open the account:

• Visit the bank or post office branch where you would like to open the account.
• Fill up the application form (Form-1) with relevant details and provide supporting documents.
• Pay the first deposit in the form of cash, cheque, or demand draft. The amount can be anything from Rs.250 up to Rs.1.5 lakh.
• The bank or post office will process your application and payment.
• Upon processing, your SSY account will be opened. A passbook will be issued for this account marking the initiation of the account.

Sukanya Samriddhi Yojana Application Form

Here is how the SSY account opening form looks like: 

In order to fill out the form, you can follow these steps:

• Under ‘To The Postmaster/Manager’, mention the Post Office/bank branch and postal address details.
• Paste the applicant(s) photograph to the right.
• Next to ‘I/We’, mention the applicant’s name and in the following space, mention Sukanya Samridddhi Yojana. 
• Enter the deposit amount in numbers and words and tick the mode of payment, whether cash, cheque or DD. In the case of a cheque or DD, write down the number and date mentioned on it.
• Enter the name of the depositor (i.e. name of the girl child) and date of birth
• Enter the name of the guardian and date of birth, Aadhaar number and PAN number of the guardian
• Enter the address and contact details
• Mention the type of account and details of the birth certificate of the depositor
• Enter the details of the KYC documents attached
• Put the signature with the name.
• Enter the nomination details.
• Get the signatures of two witnesses if the applicant is illiterate.

How to Open a Sukanya Samriddhi Yojana Account through Banks?

You can open a Sukanya Samriddhi Yojana account either with a participating bank or a post office branch. It is more convenient for you to open an SSY account with the bank where you already hold a savings account if it is one of the participating banks. You can visit the respective banks’ websites to download the SSY Account Opening Application Form. You need to fill the form and submit it to the participating bank to open the SSY account. The participating banks are:

• State Bank of India
• Allahabad Bank
• Andhra Bank
• Punjab and Sind Bank
• Bank of Baroda
• Canara Bank
• Bank of India
• Bank of Maharashtra
• Corporation Bank
• Central Bank of India
• Indian Overseas Bank
• Dena Bank
• Indian Bank
• UCO Bank
• Syndicate Bank
• United Bank of India
• Punjab National Bank
• Union Bank of India
• Oriental Bank of Commerce
• IDBI Bank
• Vijaya Bank
• Axis Bank
• ICICI Bank

The form and procedure will remain same as above.

Documents Required for Sukanya Samriddhi Yojana

You have to walk down to the post office or a bank branch where you have submitted the SSY application to submit the documents and proofs. You need to submit a physical copy of the following documents:

• Birth certificate of the girl child
• Identity and address proof of the guardian
• Medical certificate for proof of birth of multiple girl children on a single order of birth
• Other KYC documents, such as Aadhaar card, Voters ID, etc.
• Any other documents as required by the post office or banks

Sukanya Samriddhi Yojana Online Payment

You have to download the IPPB app on your smartphone to make online payments towards your SSY account. Through this app, you can set standing instructions so that a specified amount will be transferred online to your SSY account. Here is the step-by-step procedure:

Step 1: Transfer money from your bank account to the IPPB account.
Step 2: On the IPPB app, go to DOP Products / Services tab and choose the Sukanya Samriddhi Yojana account.
Step 3: Enter your SSY account number and the customer ID.
Step 4: Choose the amount you would like to pay and the instalment duration.
Step 5: IPPB will notify you of the success of setting up the payment routine.

Each time the app makes the money transfer, you will be notified of the same.

Sukanya Samriddhi Yojana Withdrawal Rules

You must submit the duly filled withdrawal form (Form-3) along with the SSY account passbook to the bank or Post Office branch where the account is maintained.

In order to claim or withdraw prematurely, you need to satisfy some conditions, such as marriage expenses or for the higher education of the girl child when she has attained 18 years.

Withdrawal can also be made from the account up to 50% of the balance available at the end of the previous F.Y. when the girl is above 18 years or has passed 10th standard to meet education expenses, such as fees or other such charges. A documentary proof by way of a confirmed offer of admission in an educational institution, or a fee slip shall accompany the application for withdrawal. However, the amount of withdrawal shall not exceed the fees payable for admission for higher education.

Sukanya Samriddhi Yojana Closure Rules

Closure on Maturity

Account matures after completion of 21 years of the girl child and the balance in the SSY, including interest, is paid to the child on submitting an application and proof of identity, residence, and citizenship documents.

Premature Closure

Premature closure is allowed only in the following situations:

• Reasons for intended marriage after a girl child attains the age of 18 years, an application (Form-4) can be submitted between one month prior to marriage and 3 months after marriage along with her age proof documents.
• Death of the girl child on the production of the death certificate the balance in the SSY along with interest will be paid to the guardian.
• Medical treatment in case of life-threatening diseases of the girl child or death of the guardian.
• Deemed closure in case of a change in the status of girl child i.e., girl child either becomes a non-resident or a non-citizen of India. Such a status change should be communicated by the girl child or her guardian within one month of the status change.
• After completion of 5 years from the opening of an SSY, if the post office or bank is satisfied that the operation or the continuation of the SSY is causing undue hardship to the girl child (such as the death of the guardian, medical reasons of the girl child), the girl child or guardian may order for premature closure.
• For any other reasons, if the SSY is to be closed anytime after the opening of this account, it will be permitted, but the entire deposit would only earn an interest rate applicable to the post office savings bank.

How to Transfer a Sukanya Samriddhi Account from the Post Office to a Bank?

In order to transfer the SSY account from a post office to a bank, follow these instructions:

• Visit the PO branch where the account is held. The girl child need not visit the PO branch as the guardian can complete the process.
• Inform the PO executive about your intent to transfer the SSY account.
• Submit the duly filled account transfer form and KYC documents. The executive will verify the details and transfer the account on your request.
• Now, visit the bank branch where you would like to maintain the SSY account.
• Submit the self-attested KYC documents and any other paperwork provided to you by the PO executive while requesting to maintain the account with them.
• Once the bank executive processes your request, a new passbook will be provided.

The balance in the SSY can be transferred anywhere in India – from or to post offices, from or to banks, and between post offices and banks free of cost. This can be done upon furnishing proof of a change of residence of either the guardian or the girl child. Under any other circumstance, such a transfer can be made by paying a fee of Rs 100.

Sukanya Samriddhi Yojana Vs PPF

Public Provident Fund (PPF) is a government-backed retirement saving scheme whereas, SSY is a government-backed small savings scheme dedicated to girl child development. Both accounts provide tax benefits. While a PPF account can be opened by anybody, an SSY account can only be opened in the name of a girl child before she attains the age of 10 years. PPF balance can be liquidated to a certain extent, while the same may not be true for the SSY account.

Both schemes are designed for different purposes and therefore, picking a better option between the two schemes is tough. Here is a table that gives a comparative picture of both schemes.

Sukanya Samriddhi Yojana Vs LIC

Life Insurance Corporation (LIC) is known for providing life insurance products to its customers. One of its products, LIC Kanyadan, is comparable with the benefits offered by SSY. Both the schemes offer financial protection for girl children and look to cover education and marriage expenses for them.

One thing to note here is that an SSY account can only be accessed by the girl child once she attains 18 years of age, while LIC Kanyadan does not provide access to the girl child at all until the father’s death.

Here are a few more differences between the LIC Kanyadan scheme and SSY.

Sukanya Samriddhi Scheme (SSY) is a dedicated scheme for the empowerment and the secured future of the girl child. Every parent of a girl child must consider investing in this scheme as it also doubles as a good tax-saving instrument. Parents can open a SSY account in the name of a girl child within 10 years of her birth. The maturity proceeds from SSY will help them to cover the expenses of her college and marriage. 

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How to Open an SSY Account in HDFC?
How to Open an SSY Account with the State Bank of India?
Post office saving schemes