Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana (SSY) - All You Need to Know

Sukanya Samriddhi Yojana is one of the National Savings Schemes the Government of India offers to secure a girl child’s future

Written by : Daina Mathew

Reviewed by : Jasmeet Bedi

Jasmeet Bedi

2024-09-16

4815 Views

14 minutes read

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Developed as part of the government's 'Beti Bachao, Beti Padhao' campaign, Sukanya Samriddhi Yojana or SSY is a welfare scheme designed for the girl child. Investing in this child insurance plan allows parents or legal guardians to ensure financial security for a girl child aging ten years or below. Under the Sukanya Samriddhi Yojana, an account in the name of the girl can be opened across any of the private and public sector banks for 21 years. The tenure of investment under SSY is 21 years, starting from the account's opening date.

Table Of Content:

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana is a saving scheme by the government of India that is aimed at the betterment of girls and children in India. It was launched to help parents build funds for higher education and other expenses for their girl child.

Through regular deposits, you can create a sufficient corpus as the years pass by, which can later be used to meet your child’s life goals.

It is one of the multiple schemes introduced under its Beti Bachao Beti Padhao Yojana, launched in 2015 by Prime Minister Narendra Modi. ‘Dhanlakshmi Scheme’ and ‘Ladli Scheme’ were some of the other schemes launched.

Benefits of Sukanya Samriddhi Yojana 

  • High Interest: Sukanya Samriddhi account offers high interest rates compared to other savings plans for securing the financial future of female children. The government declares the annual interest rate, which compounds yearly, leading to significant asset growth by maturity.
  • Significant Tax Savings: Investing in the Sukanya Samriddhi Yojana scheme offers numerous tax benefits. Under Section 80C of the Income Tax Act 1961, your contributions qualify for tax deductions of up to ₹1.5 lakh annually. Tax saving benefits extend to the interest earned and the amount received upon maturity or withdrawals. 
  • Guaranteed Maturity Benefits: Upon maturity, the SSY ensures that the account balance and accumulated interest are directly paid to the girl child or policyholder. This feature promotes financial independence and empowerment, allowing the daughter to make life decisions autonomously. 

Key Features of Sukanya Samriddhi Yojana (SSY)

SSY was introduced to help the parents of the girl child build a corpus for her that could help her achieve goals such as education and marriage. Consider the below features of the SSY account:
 

FeaturesDetails
DEPOSIT LIMIT

  • Minimum Deposit: ₹250 (Initial Deposit), further deposits in multiples of 50

  • Maximum Deposit: ₹1,50,000

ACCOUNT HOLDER

  • If the girl child is under 10, then the girl's parent or guardian will handle the account.

  • A Girl can take control of the a/c once she turns 18

MATURITY21 years after opening the account. You have to deposit for at least 15 years
DOCUMENTS REQUIRED

  • Birth Certificate of the girl child

  • PAN/AADHAAR of the Parent/Guardian

  • SSY account opening form

  • Medical certificate, if multiple children are born under one order of birth

  • Any other documents requested by the bank or post office

  • Form SSA-1

DEPOSITS

Deposits can be made through the following:

  • Online transfer/NEFT

  • Demand draft

  • Cash 

  • Cheque

Sukanya Samriddhi Yojana Interest Rates 

The rate of interest that you will receive in your SSY account currently stands at 8.2 p.a. for the financial year 2024-2025. This is more than the previous rate, 8.0%, from 1 April 2023 to 31 December 2023. Some of the conditions for Sukanya Samriddhi Yojana interest rates are listed below:

  • Interest is payable to you yearly
  • Interest is credited at the end of every financial year only
  • Interest rate is decided by the government and change every quarter
  • No interest will be provided if the girl becomes an NRI

Here is a table that shows the interest rates offered by the SSY scheme since its inception:

YEARRATE
03.12.2014 to 31.03.20159.1
01.04.2015 to 31.03.20169.2
01.04.2016 to 30.09.20168.6
01.10.2016 to 31.03.20178.5
01.04.2017 to 30.06.20178.4
01.07.2017 to 31.12.20178.3
01.01.2018 to 30.09.20188.1
01.10.2018 to 30.06.20198.5
01.07.2019 to 31.03.20208.4
01.04.2020 to 31.03.20237.6
01.04.2023 to 31.12.20238.0
01.01.2024 to 31.03.20248.2

How to Calculate Interest on the Sukanya Samriddhi Yojana Scheme? 

To determine the required corpus, you need to consider the interest that will be added. You can use the below formula to calculate your Sukanya Samriddhi Yojana interest rate.

I = P(1+R/100) ^N

I = Interest 
P= Principle Invested 
R= Rate of Return 
N= Number of Years

The compound interest on the SSY account is calculated every year. If you do not want to calculate manually, you can check the Sukanya Samriddhi Yojana calculator, which is available online.

What is Sukanya Samriddhi Yojana Calculator? 

SSY scheme allows you to deposit regularly in the account and create a corpus that will be useful for your girl child. This investment is the safest option as it is backed by the government and has a surety of returns.

Since it is safe, you can calculate an estimated amount that you can receive once the scheme matures. To do this, you can use the Sukanya Samriddhi Yojana calculator.

In the calculator, you need to enter the investment that you will make every year and the interest rate that is applicable currently. The maturity period is pre-defined and is 21 years.

Who Can Use Sukanya Samriddhi Yojana Calculator? 

The Sukanya Samriddhi Yojana calculator is a helpful tool for investors who are eligible to invest in the scheme. Parents and guardians of a girl child can use the calculator to plan their daughter's future expenses, determine the optimal investment amount, and understand potential returns. Financial planners rely on it to offer tailored advice to clients, maximising the scheme's benefits. Government agencies and policymakers leverage its insights to shape future financial inclusion strategies.

To start the account, they need to provide certain documents:

  • Opening document containing personal details of the account holder and girl child

  • The birth certificate of the girl

  • Valid ID proof

  • A medical certificate in case of multiple children from the same birth

Once you meet the eligibility criteria and submit the required documents, you can use the calculator to plan the investment.

Did You Know?

The Sukanya Samriddhi Yojana is administered by the Department of Revenue (DOR) and is a popular investment scheme with exempt-exempt-exempt (EEE) status.

- ET Money

Claim Settlement Ratio

Eligibility Criteria for Sukanya Samriddhi Yojana

The Government of India has made SSY accessible to everyone, and you can open an account at any post office. Just keep the following in mind:

  • Only parents or legitimate guardians can open the account on behalf of the girl's child.

  • The girl child ought to be under ten years old at the time of account opening. The account can be operational till the girl child is 21 years old.

  • The opening investment can begin at ₹250 and be limited to ₹1,50,000 yearly, with ongoing deposits in the products of ₹100.

  • An individual girl child cannot have numerous Sukanya Samridhhi accounts.

  • Only two Sukanya Samriddhi accounts are permitted per family, i.e., one for each.

Tax Benefits of Sukanya Samriddhi Yojana 

If you have an SSY account, you can receive tax benefits on deposits. Let's look at the tax benefits the Sukanya Samriddhi Yojana scheme provided in 2024.

  • Since an SSY account is a type of investment, it is eligible for deductions provided u/s 80C of the Income Tax Act. You can avail of a deduction of up to ₹1,50,000.

  • The withdrawals are also tax-free. Thus, once your account matures, you can withdraw the amount without deduction.

Thus, all these tax benefits make SSY an E-E-E instrument. 

How to Open Sukanya Samriddhi Account? 

You can open a Sukanya Samriddhi Account by visiting any of the following:

  1. Banks
  2. Post office

How Do You Open a Sukanya Samriddhi Account Through a Bank? 

Here are the steps you can follow to open your Sukanya Samriddhi Account through a bank:

Step 1: Visit your nearest Bank.

Step 2: Fill out the application form for SSY. This is known as FORM SSA-1. The bank or the post office you visit will provide this form.

Step 3: You can also download and fill out the form beforehand.

Step 4: After completing this form, you must submit the necessary documents. These include:

  • The birth certificate of the girl child you want to open the account for.
  • The birth certificate of the girl child you want to open the account for.
  • Identity Proof of the parent/guardian: AADHAR card, PAN card, Voter ID, etc.
  • Address Proof: License, Telephone bill, etc.

Step 5: Pay your first deposit. You must deposit a minimum amount of ₹250. You can deposit up to ₹1.5 lakhs.

Step 6: The bank will take some days to process your application after submitting all the documents.

Step 7: After verification, your SSY account will be opened. You will be issued a passbook.

How to Open Sukanya Samriddhi Yojana Account in Post Office?

To open a Sukanya Samriddhi Yojana Account in the Post Office, here is the step-by-step guide for you to follow:

  1. Visit your nearest Post Office (PO).

  2. Fill the account opening form provided by the Post Office Savings Bank

  3. Attach your ID proof, Address proof, and other related documents with the application form

  4. Deposit the sum (it should be more than Rs 250)

  5. Wait for the processing of the application

  6. After processing your account will be opened and you will be issued the passbook

Documents Required for Sukanya Samriddhi Account

To open an SSY account, you need to submit some documents to validate your identity. You cannot submit these documents online, so you have to visit your nearest bank or post office to do so.

Here are the documents you require:

For the Girl Child:

  1. Birth certificate
  2. Form SSA-1

For the Parent:

  1. Identity Proof: PAN Card, AADHAR card
  2. Address Proof: Driving License, Telephone bill, electricity bill

Though only these documents are required, the relevant bank can also ask you for proof of other documents.

How to Pay for Sukanya Samriddhi Yojana Online? 

To make the payment process more convenient, the SSY scheme also allows deposits from the online mode so that you do not have to visit the place. Here’s how you can deposit money for Sukanya Samriddhi Yojana online.

  • Download the IPPB (Indian Post Payments Bank) app. IPBB is a division of the Indian Post

  • First, transfer the money from your current bank account to your IPPB account.

  • Now locate the ‘DOP Product’ section. Click on the SSY account link

  • After this, enter the account number of your SSY account along with the customer ID of DOP

  • Select the amount you want to deposit to your SSY account and the duration

  • Wait for the confirmation from IPPB of the successful transfer

  • Once you get the confirmation, your payment is successful, and your payment routine is set up

What Happens if You Pay Less or More for Sukanya Samriddhi Yojana?

To know what happens if you pay more or less than the prescribed limit, you should know the minimum and maximum amount you can deposit in your SSY account.

  1. Minimum Deposit: ₹250
  2. Maximum Deposit: ₹1,50,000
     

Deposit not made/Deposit below the minimum amount 

Your account will default if you pay below the minimum amount of ₹250 in a financial year. To make your account active again, you must pay a fine of ₹50.

Excess Deposit made 

No interest is generated for the deposit over and above the max limit, i.e., ₹1.5 lakh. You can withdraw the excess amount at any time.

Withdrawal Rules for Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana Account has a maturity period of 21 years from the date of opening. But you are allowed to withdraw from your funds if conditions are met. Here are some of the rules regarding when and how much can you withdraw your funds.

  1.  The girl child can withdraw the whole corpus created after the maturity of the account including the interest earned. This withdrawal is without any tax restriction.
  2.  The withdrawal will only be allowed after you fill the withdrawal form and submit all the necessary documents such as

    • Identity Proof
    • Address Proof

Withdrawal for Education 

You can withdraw for academic purposes if your child reaches the age of 18 years or completed the 10th standard education. For this, you need to submit the appropriate documents related to admission, such as:

  1. Confirmed admission offers from the college/university
  2. Copy of fee slip

The maximum amount you can withdraw is capped at 50% of the amount available as of the previous year.

Rules for Premature Withdrawal from Sukanya Samriddhi Yojana

There can be circumstances when you cannot continue with the account and thus have to withdraw your corpus before maturity. According to the scheme, you are allowed to make premature withdrawals. But the following conditions will apply:

Premature Withdrawal in Case of Marriage

You are allowed premature withdrawal when the girl attains the age of 18 and is getting married. You will need the following:

  • Apply one month before the marriage or 3 months after the marriage, declaring the same.
  • Proof of identity and marriage must be submitted.

Premature Withdrawal in Other Cases 
 

  • In case the child dies, the right of the account will be given to you, and you can withdraw the balance after submitting the death certificate.
  • The account will close if the girl is no longer a citizen of India. Change in status must be communicated to the bank.
  • The account can be closed after 5 years if the girl child is facing difficulties in survival. These can be the death of a guardian, parent, etc. The bank or the post office where you have an account must approve this.

How to Transfer Sukanya Samriddhi Yojana Account From Post office to Bank?

You can transfer your Sukanya Samriddhi Yojana Account from Post Office to a Bank. This process can be performed by the guardian or the parent itself. Here’s how you transfer your account.

  1. Visit the Post Office in which you have your SSY account and inform the executive about transferring your account.

  2. Fill the transfer application and submit the following documents:

    • ID proof
    • Passbook
    • KYC (Know Your Customer) documents

  3. Move to the bank you want to open the SSY account with

  4. Self-Attest the KYC documents and the form and submit it to the bank

  5. You will be provided with a new passbook after the verification and processing of documents.

The SSY balance can be freely transferred across India, between post offices and banks, upon proof of a change in residence for either the guardian or the girl child. Under any other circumstances, a ₹100 fee applies for transfers.

Details of Sukanya Samriddhi Account Passbook

A passbook is issued to you after all the formalities have been taken care of and your account has been opened. The passbook is a small booklet issued by the bank or a post office that contains a record of all the transactions that you have done through your account. It contains the following details.

  • Your deposits to the account

  • Withdrawals from your account

  • Interest generated

It also contains your personal information, such as your name, account number, and opening date.

Empower your Daughter through Sukanya Samriddhi Yojana

The Sukanya Samriddhi Yojana scheme provides one of the best investment opportunities for you to build up a sufficient corpus for your daughter when she turns 18. The SSY has a sovereign guarantee, while its EEE status implies that it provides several benefits to both the parent and the girl children. 

Thus, you can invest a portion of your savings towards the Sukanya Samriddhi Yojana online to earn compounding benefits on your contributions so that your daughter can financially support her dreams of higher education and marriage despite inflationary pressures.

Glossary:

  • Compound Interest: It is the interest calculated on the initial principal amount and the accumulated interest of previous periods.
  • Exempt-Exempt-Exempt (EEE) status: A tax treatment where contributions, investment growth, and withdrawals are exempt from taxation.
  • Form SSA-1: It is an application form used in India to open a Sukanya Samriddhi Yojana (SSY) account for a girl under 10.
  • Lock-in Period: A period during which the invested amount remains inaccessible for withdrawal, ensuring long-term financial security. 
  • Premature Withdrawals: In SSY, funds can be accessed before the maturity period of 21 years, subject to certain conditions.
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FAQs Related to Sukanya Samriddhi Yojana

If you are a parent of a girl child or a legal guardian, then you can open Sukanya Samridhhi Account. Through this account, you can deposit a certain sum regularly and earn yearly interest on it. This will help you create a corpus that will come in handy at the time your daughter achieves the age of higher education or marriage. SSY is a scheme that was launched by the government in the year 2015.

No, till now there is no provision which states that Non-Resident Indians can also avail the benefits of the Sukanya Samriddhi Scheme and open an account under this scheme.

As of now, the girl child should be an Indian citizen. If the girl child becomes an NRI later on, then the account under SSY will be closed.

If the depositor dies before the maturity of the term, then either of the following happens:

  1. The girl child receives the money that was now deposited with interest
  2. The sum continues in the account and gains interest till maturity

A depositor is the person who puts in money in the SSY account. It is either the parent or the legal guardian of the girl child. If the depositor dies before the maturity of the term then either of the following happens.

  1. The girl child receives the money that was till now deposited with interest

  2. The sum continues in the account and gains interest till maturity

In a recurring deposit or RD, you are required to deposit a fixed amount regularly for some time. You gain interest on your invested amount.

Sukanya Samriddhi Scheme works on the same lines as an RD but it has a specific purpose to it. In an RD anyone can invest, but an SSY account is specifically for the girl child only.

Also, the rate of interest gained in the Sukanya Samridhhi Scheme is more than the interest rate of RD

After your account is opened with the bank of a post office, you are issued a passbook. A passbook contains all the transactions you have made with your account. It shows your deposits, withdrawal and interest as well.

Print your passbook regularly to get your latest balance.

The SSY scheme has a lock-in period of 21 years from the opening date. Following maturity, the invested amount can be withdrawn without any tax implications.

The Sukanya Samriddhi Yojana extends until the girl child reaches 21 or gets married after turning 18. However, contributions are only made for 15 years. Following this period, the SSY account continues accruing interest until maturity, irrespective of additional deposits.