Securing the Future of the Girl Child: A Comprehensive Guide to Sukanya Samriddhi Yojana

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Sukanya Samriddhi Yojana is a savings scheme launched by the Government of India in 2015, specifically targeted towards the girl child. The scheme aims to provide financial security to the girl child and promote girl child education and marriage.

Guide to Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana

The Sukanya Samriddhi Yojana scheme was launched on 22 January 2015 in Panipat, Haryana by Prime Minister Narendra Modi. The scheme is aimed at the betterment of the girl child in the country by abolishing sex determination, gender discrimination, protection of girls, and higher participation of girls in education and other fields. Here are some more details of Sukanya Samriddhi Yojana scheme including its interest rates, benefits, eligibility, and others.

Sukanya Samriddhi Yojana- Overview

The following are the important details of SSY scheme: 

Interest rate7.60% p.a.
Investment AmountMinimum – Rs.250, Maximum Rs.1.5 lakh p.a.
Maturity AmountDepends on the invested amount
Maturity Period21 years (or, till the girl is married after attaining the age of 18 years)

Benefits of Sukanya Samriddhi Yojana Scheme 

Sukanya Samriddhi Yojana (SSY) scheme was launched under the Beti Bachao Beti Padhao campaign with the main aim of securing the future of a girl child. The main benefits of the SSY scheme are mentioned below:

  • Interest rate was reduced from 8.4% to 7.6%
  • Tax benefits of up to Rs.1.5 lakh
  • Account can be transferred

Investments made towards the scheme can be used for the girl child’s marriage and education. An SSY account can be opened at banks and post offices. Under Section 80C of the Income Tax Act, 1961, tax benefits of up to Rs.1.5 lakh are provided for contributions made towards the scheme.

Sukanya Samriddhi Yojana Interest Rate

Currently, the interest rate of SSY scheme was reduced from 8.4% to 7.6% and it is compounded on a yearly basis. Interest is not payable once the duration of the scheme is completed or if the girl becomes a Non-resident Indian (NRI) or a non-citizen. The rate of interest is decided by the government and is determined on a quarterly basis.

The rate of interest that has been offered by the scheme is mentioned in the table below:

DurationRate of interest (%)
April 2020 onwards7.6
1 January 2019 – 31 March 20198.5
1 October 2018 – 31 December 20188.5
1 July 2018 – 30 September 20188.1
1 April 2018 – 30 June 20188.1
1 January 2018 – 31 March 20188.1
1 July 2017 – 31 December 20178.3
1 October 2016 – 31 December 20168.5
1 July 2016 – 30 September 20168.6
1 April 2016 – 30 June 20168.6
From 1 April 20159.2
From 1 April 20149.1

What happens if a lesser or excess amount is paid towards sukanya samriddhi yojana scheme?

  • Lesser amount: In case the minimum amount of Rs.500 is not paid in a financial year, the account will be considered as default. However, the account can be brought back to the active status by paying a fine of Rs.50.
  • Excess amount: No interest is generated for any deposit above Rs.1.5 lakh. The depositor can withdraw the excess amount any time.

Sukanya Samriddhi Yojana- Withdrawal Rules

  • Once the duration of the account has been completed, the entire amount that is available in the account including the interest can be withdrawn by the girl child. However, the below-mentioned documents must be submitted:
    • Application form for the withdrawal of the amount.
    • ID proof
    • Address proof
    • Citizenship documents
  • Withdrawal is allowed for the purposes of higher education if the girl child has attained the age of 18 years and has completed 10th standard. However, the money must be used for the fee or any other charges that are levied at the time of admission.
  • Documents such as admission to the university or college as well as the fee receipt must be submitted when applying for the withdrawal.
  • The maximum amount that can be withdrawn is 50% of the amount that is available in the previous year. The amount can be withdrawn in 5 instalments or in a lump sum.

Rules for premature withdrawal from SSY account

  • Once the girl attains the age of 18 years old and is getting married, SSY premature withdrawal is allowed. However, an application must be submitted at least one month before marriage and 3 months after the marriage to avail the benefit. Documents which determine the age of the girl must also be provided.
  • In case the girl child becomes a non-citizen or a non-resident, the account will be deemed as closed. Any such change in status must be informed by the guardian or the girl child within one month from the change in status.
  • In case the girl child passes away, the balance that is available in the account can be withdrawn by the guardian. However, the death certificate must be submitted.
  • If the account has been opened for 5 years and more, and the bank or post office feel that the continuation of the account is causing difficulties to the girl child, the guardian or girl child can opt for premature closure.
  • Permission to close the account will be permitted for other reasons as well, but the interest that is earned from the contributions will be the same as the interest rates that are provided by post offices.

Sukanya Samriddhi Yojana- Features

FeaturesDetails
Operation of the accountThe guardian or parents can operate the account until the girl reaches the age of 10 years.The girl must operate the account once she attains the age of 18 years.
Deposits made towards the accountThe minimum and maximum deposit that can be made in an account in a financial year is Rs.500 and Rs.1.5 lakh, respectively. The deposits can be made in multiples of 100.
Duration of the schemeDeposits towards the scheme should be made for a period of 15 years. However, the scheme matures after 21 years.
Transfer of accountAn SSY account can be transferred from post offices to banks and vice versa anywhere within India. No charges will be levied for the transfer of the account. However, a proof for change in residence must be produced. In case no proof is produced, a Rs.100 charge will be levied.
Mode of depositsDeposits towards the account can be made in the form of online transfer, demand draft, cheque, or cash.

Sukanya Samriddhi Yojana -Tax benefits

  • Under Section 80C of the Income Tax Act, 1961, tax benefits of up to Rs.1.5 lakh are provided for contributions made towards the scheme.
  • The interest amount that is generated is also exempt from tax.
  • Tax benefits are also provided for the maturity amount or the withdrawal amount.

Sukanya Samriddhi Yojana -Eligibility

  • The parent or legal guardian can open an SSY account on behalf of a girl child until she reaches the age of 10.
  • The girl child must be a resident Indian.
  • In a family, up to two accounts can be opened for two girls.
  • A third SSY account can be opened in case of twin girls.

Documents required to open an SSY account

  • SSY account opening form.
  • The birth certificate of the girl child must be submitted at the time of opening the account.
  • The ID proof and address proof of the depositor must be submitted at the time of opening the account.
  • A medical certificate has to be submitted in case multiple children are born under one order of birth.
  • Any other documents that are requested by the bank or post office.

How to open a Sukanya Samriddhi Account?

  • Visit the nearest branch of the bank or post office and fill the application form.
  • Once you have filled in the form, submit it along with all the necessary documents.
  • Pay the first deposit amount which can range between Rs.250 and Rs.1 lakh.
  • The application form and payment will be verified by the bank or the post office and if all the details are correct, an SSY account will be opened in your name.

How to fill an SSY account form for post office?

  • Visit the nearest post office and ask for an SSY account application form.
  • If you have a savings account with the post office, mention your account number.
  • Mention the post office branch details and postal address under ‘To The Postmaster’.
  • Post the photograph of the applicant.
  • Mention the name of the applicant and mention the option ‘Sukanya Samriddhi Yojana’.
  • Provide the relevant information under ‘Account Type’ and ‘Account Holder Type’.
  • Mention the amount you will deposit once the account is created.
  • Provide other relevant details such as gender, Aadhaar number, PAN, address, etc.
  • Sign page 1 to authorise all the information provided.
  • In Page 2 section (5), provide details if you wish to set standing instructions for the amount to be deposited to your account.
  • Cheque the square box next to SSA stating that no other SSY account has been created.
  • Provide the date and signature.
  • Provide nomination details.
  • Get two witnesses and get their signature in case the applicant is illiterate.
  • Provide the place, date and signature at the end of the nomination section.

How to pay for SSY online

  • Download the IPBB app on your mobile phone.
  • Transfer the money from your bank account to your IPBB account.
  • Log in to your IPBB account and choose ‘Sukanya Samriddhi Yojana’ under ‘DOP Products’.
  • Provide your SSY account number and customer ID.
  • Choose the amount you wish to pay and the duration of installment.
  • Once the payment routine has been set up, IPBB will notify you for the same.
  • Each time the money is transferred to your IPBB account, you will be notified of it.

Also Read Your Guide To Saving Tax: Effective Strategies To Maximize Your Refund

Banks that offer SSY account

The below-mentioned banks offer SSY scheme:

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

How to transfer Sukanya Samriddhi account from Post Office to Bank? 

  • Visit the post office where the beneficiary holds an account with 
  • Inform about you transfer intent to the PO executive and submit the duly filled account transfer form 
  • Submit the passbook and KYC documents along with the transfer form 
  • The PO executive will discontinue the account upon the request of the beneficiary 
  • Visit the bank branch where the beneficiary wants their account to be transferred 
  • Submit all the required documents including the self-attested KYC documents 
  • New passbook will be provided after completion of the transfer request 

Note

  • For processing the transfer request, the girl child need not visit the PO branch. 
  • All the formalities can be completed by the guardian. 
  • The balance transfer of SSY account within or outside post offices or banks can be done free of cost. 
  • Transfer of Sukanya Samriddhi account can be done by providing proof of residence change of either of the beneficiary or their guardian. 
  • Change of Sukanya Samriddhi account on any other circumstances would require Rs.100 

Difference between SSY, PPF, and LIC 

Following are the differences between Sukanya Samriddhi Yojana, Public Provident Fund, and LIC Kanyadan Scheme: 

DetailsSukanya Samriddhi Scheme Public Provident FundLIC Kanyadan Scheme 
Policy or account opened by Girl child and maintained by guardian until she attains 18 years Any Indian citizen Father of girl child 
Eligibility Girl child of Indian origin below the age of 10 years Any Indian resident above 18 years Father of girl child with age of the father ranging between 18 years to 50 years 
Deposit amount Minimum: Rs.250 Maximum: Rs.1.5 lakh Minimum: Rs.500 Maximum: Rs.1.5 lakh Rs.40,000 onwards (approx.) 
Payment period 15 years 15 years 6 years, 10 years, 15 years, or 20 years (3 years less than policy term) 
Maturity period 21 years 15 years 13 to 25 years 
Interest rate 7.60% p.a. compounded yearly 7.10% p.a. compounded yearly Not specific 
Premature withdrawal On completing 18 years of the girl child On completing sixth years NA 
Tax benefit EEE benefit EEE benefit Tax exempted 
Loan facility NA After the third financial year and available only at the end of sixth financial year Loan can be availed after payment of three consecutive premiums if policy is still active. 
Maturity amount Depending upon the deposit amount Depends upon investment tenure and annual contribution Minimum: Rs.1 lakh Maximum: No limit 

FAQs -Sukanya Samriddhi Yojana

Ques- What is the relaxation in age limit given to girl child under the Sukanya Samriddhi Scheme?

Ans- Since, Sukanya Samriddhi scheme is a newly launched scheme, the government does not want few people to miss availing it due to reasons pertaining to age. Hence, any girl child who has attained the age of 10 years, exactly 1 year prior to the launch of scheme is also eligible to avail the scheme. So, any girl child born between 2nd December 2003 and 1st December 2004 is eligible to avail the Sukanya Samriddhi Scheme.

Ques- What is the taxation process of amount deposited under Sukanya Samriddhi Scheme?

Ans-There is a limit of Rs.1,50,000 which is exempt from taxation. Any amount above this will not fetch any income tax relief under section 80C of the Income Tax Act.

Ques-Who all can open Sukanya Samriddhi Account?

Ans- Any legal guardian or parent of a girl child can open Sukanya Samriddhi Account on behalf of their girl child.

Ques- Can a Non-Resident Indian avail the Sukanya Samriddhi Scheme?

Ans- As of now, there is no official communication regarding this issue and such NRIs are, for the time being, not covered under the Sukanya Samriddhi Scheme.

Ques- What happens in the case the girl child who is the beneficiary meets with an unexpected death?

Ans- In case of death of girl child, Sukanya Samriddhi Account is discontinued and closed and the proceeds are transferred to the guardian or parent of the girl child.

Ques- What happens in case of death of the depositor (guardian or parent of the girl child)?

Ans- In case of death of legal guardian or parent of girl child, the scheme is either closed and the proceeds are given to the family or girl child. Or, the scheme is continued with the deposited amount until the maturity period and the deposited amount continues to earn interest till the girl child attains the age of 21 years.

Ques- Can I convert my normal bank deposit account to Sukanya Samriddhi Account?

Ans- No. Currently, the feature of converting deposit account to Sukanya Samriddhi Account is not available. Sukanya Samriddhi is a special scheme aimed at uplifting the financial status of girls in the country and as such conversion of account is not allowed.

Ques- Can I withdraw money from my Sukanya Samriddhi Account, prematurely?

Ans- No. Only a partial withdrawal of up to 50% is allowed and that also when the girl child has attained at least the age of 18 years. This amount can be withdrawn only for higher education or wedding expense of the girl child.

Ques -Is the Sukanya Samriddhi scheme available throughout India?

Ans- Yes. Sukanya Samriddhi is a central government scheme and as such is present in each and every state of the country.

Ques-Is the Sukanya Samriddhi Scheme transferable as per location?

Ans- Yes. This scheme can be transferred from post office to bank or from one authorized bank to another. This is because there may be times when girl child may require to move due to study or other such situations.

Ques -Should I opt for Sukanya Samriddhi Scheme or s Recurring Deposit Scheme?

Ans- Sukanya Samriddhi looks like a recurring deposit scheme in the way it is structured but customers need to understand that unlike recurring deposits, this scheme is aimed specifically at offering financial strength to girl child in the country. Also, the rate of interest offered on this scheme is higher than that being offered by any bank on recurring deposit schemes.

Ques- Who can avail Sukanya Samriddhi Account?

Ans- Only parents or legal guardians of one or more girl child can avail the Sukanya Samriddhi Scheme in the name of their daughter.

Ques -How many Sukanya Samriddhi Accounts can I take for my daughter?

Ans- Only one Sukanya Samriddhi Account per girl child is allowed. So if you have two daughters, you can avail two separate account in both of their names and if you have one daughter then only one account can be availed.

Ques-Where can I open Sukanya Samriddhi Account for my daughter?

Ans- Sukanya Samriddhi account can be opened at any of your nearest post offices or at any branch of the authorized banks. These banks include almost all top and most popular public sector and private sector banks like State Bank of India, ICICI, HDFC, Punjab National Bank etc.

Ques- Has the interest rate on Sukanya Samriddhi Scheme changed since the time of launch?

Ans- At the time of launch, in the year 2014-15, the rate was 9.1% per annum which has been revised and increased to 9.2% per annum for the year 2015-16. However it reduced to 8.6% for FY 201.6-17

Ques- Do private sector banks also have the authority to open Sukanya Samriddhi Accounts for public?

Ans- Yes. A few major private sector banks like ICICI, HDFC etc. are authorized by the Finance Ministry to furnish and maintain Sukanya Samriddhi Scheme to customers.

Ques- Can both parents claim tax deduction for Sukanya Samriddhi deposit amount under section 80C?

Ans- No. Only one of the parents or guardians can claim tax rebate as per section 80C for the amount deposited under Sukanya Samriddhi.

Ques- Can a person avail both Sukanya Samriddhi and PPF schemes?

Ans- Yes. Sukanya Samriddhi is a scheme aimed at mainly at girl child while PPF or Personal Provident Fund is there to help people save for retirement or longer tenures. Both can be availed simultaneously since both have different financial objectives.

Ques- Is there any difference between Sukanya Samriddhi scheme offered by public bank and that offered by private bank?

Ans- No. There is absolutely no difference in features of benefits. Be it private banks or public banks or post offices, all authorized entities offer exactly the same features and benefits since the scheme is a central government driven scheme.

Ques – What is the minimum annual deposit amount required for Sukanya Samriddhi Scheme?

Ans- The minimum deposit amount required per annum is Rs.250.

Ques- What is the maximum annual deposit amount that can be deposited under the Sukanya Samriddhi Scheme?

Ans- The maximum amount that can be deposited under the Sukanya Samriddhi Scheme is Rs.1.5 lakh per annum.

Ques- Is there a last date to avail the Sukanya Samriddhi Scheme?

Ans- No. There is no last date to avail the scheme. However, standard tax filing dates will apply to this scheme too for purposes of taxation.

Ques- Will I be issued a passbook under Sukanya Samriddhi Yojana?

Ans- Yes. A passbook to track all your transactions will be furnished to all account holders of the Sukanya Samriddhi Scheme. The passbook will carry all personal details like address, name and age details of the account holder. This is a good reference for depositors in case a dispute arises or even in case of transfer of account from one place to another or from post office to an authorized bank.

Ques- Can SSY account be opened online?

Ans –No, there is no provision to open an SSY account online.

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