About Sukanya Samriddhi Yojana

We all know that the ‘Beti Bachao, Beti Padhao’ initiative has attracted a lot of media and celebrity attention over the years. It is one of the largest government initiatives to educate and secure the future of girl children in India. The Sukanya Samriddhi Yojana (SSY) is another government-backed scheme, which is also a part of the ‘Beti Bachao, Beti Padhao’ campaign, helping low-income families secure the future of their girl children.

Under the SSY scheme, parents can open up to two accounts for their girls. Note that families cannot open additional accounts for their other girls(if they have more than two) under this scheme. The account comes with a tenure of 21 years or until the girl marries after the age of 18. Parents can approach any bank authorised by the Ministry of Finance to open the SSY account(s) for their baby girl.

Consider this as your guide to know everything about the Sukanya Samriddhi Yojana (SSY) scheme. 

Eligibility of Sukanya Samriddhi Yojana

  • The girl child should be less than 10 years of age at the time of opening the SSY account.
  • The account remains operational until she reaches the age of 21 years.
  • Minimum investment needed to keep the account active is Rs. 250 per year.
  • The maximum amount that can be invested in the account every year is Rs. 1.50 Lakhs
  • Parents cannot have two accounts under a single girl child’s name.
  • Each family is allowed two SSY accounts (one for each girl child).

Features & Benefits of Sukanya Samriddhi Yojana

Features of SSY Scheme

●     The parents or the legal guardian of the girl child opens the account.

●     Maximum accounts allowed to be open are two. However, in case of twins, three accounts can be opened.

●     Minimum Deposit Amount: Rs. 250

●     Maximum Deposit Amount: Rs. 1.50 Lakhs

●     Interest Rate: 8.1% per annum. (can differ from year to year)

●     The account can be prematurely closed in case the depositor dies.

●     Account revival cost is Rs. 50, which needs to be paid at the end of the year along with the minimum amount due for the said year.

●     The account matures after 21 years from the date it was open or on the day when the girl child gets married.

Benefits of SSY Scheme

●     The scheme comes with a high-interest rate.

●     The deposits can be made in cash, cheque, and demand drafts, as per the depositor’s convenience.

●     When the girl child is 18 years or above, she can withdraw up to 50% of the balance amount.

●     The accrued interest is paid to the girl (primary account holder) upon maturity of the scheme.

●     The scheme has triple tax benefits. We have discussed the SSY tax benefits in this section further.

Sukanya Samriddhi Yojana Tax Benefits

Parents who diligently contribute towards the SSY accounts that secure the future of their girl child can avail several tax benefits.

  • You can claim tax deductions under Section 80C of the old income tax regime
  • The interest earned on the deposit is tax-free, and it is compounded annually
  • The maturity benefits received by the girl child are also tax-free
  • The amount that is withdrawn is also exempt of tax

The SSY scheme is categorised under the Department of Revenue (DOR) and is one of the most popular tax-saving schemes available in the market with Exempt-Exempt-Exempt (EEE) status.

Sukanya Samriddhi Yojana Interest Rates 2020

The SSY scheme is known to provide attractive and high-interest rates. The Government of India declares the rate of interest at the start of each quarter of the said on-going financial year. At the moment, the Sukanya Samriddhi Yojana interest rates for 2020 are as follows:

Quarter

SSY Interest Rates 2020

January 01, 2020 to March 31, 2020

8.40%

April 01, 2020 to June 30, 2020

7.60%

July 01, 2020 to September 30, 2020

7.60%

October 01, 2020, onwards

7.60%

Documents Needed to Open Sukanya Samriddhi Yojana Account

  • Duly filled application form
  • Birth certificate of the girl child
  • Proof of address of the parent/legal guardian - Voter ID, Passport, Aadhaar Card, Fixed Line Telephone Bill, etc.
  • Proof of Identity of the parent/legal guardian - PAN Card, Voter ID, Passport, Aadhaar Card, etc.

Sukanya Samriddhi Yojana Application Form

Along with the documents, the parent or legal guardian has to submit a duly filled SSY scheme application form. The SSY application form is available at any of the authorised banks or nearest post offices. Besides, the form can be downloaded from the Reserve Bank of India’s (RBI’s) website.

The SSY application form will request the following details -

  • Information of the parents or legal guardian who is opening the account on behalf of the girl child
  • Name and date of birth of the girl child
  • Deposit amount (a minimum of Rs. 250)
  • Cheque details or DD number (if required)
  • KYC information such as PAN Card, Aadhaar Card, or Voter ID details
  • Birth certificate of the girl child
  • Current and permanent address of the parents or legal guardian

Sukanya Samriddhi Yojana Withdrawal Rules

As stated earlier, the SSY account matures when the girl child reaches 21 years of age. After the scheme matures, the child can withdraw the money from the bank account. The girl can withdraw up to 50% of the SSY account balance for her higher studies when she is 18 years old. The SSY account will continue providing interest until the time it is terminated. So, even after the age of 21, the girl will continue to earn interest on her SSY account.

Conclusion

While Sukanya Samriddhi Yojana (SSY) is a government-backed scheme to protect the financial future of the girl child in India, there are various other schemes that people can consider investing to secure their child’s future. So, in case you fail to fit into the eligibility criteria, you need not worry!

Parents can consider investing in ULIP Child Plans available on Finserv MARKETS. This plan is known to build a secure financial future for your children. It comes with a host of other benefits such as life insurance cover i.e. coverage for the family in the absence of the primary investor (death coverage) and building funds to help your child meet his/her life objectives.

You can read more about child investment plans by visiting Finserv MARKETS online.

FAQs

  • ✔️How is the interest in the SSY Scheme calculated?

    The Central Government of India regulates the Sukanya Samriddhi Yojana interest rates quarterly. The interest in the SSY account is calculated based on the maturity date and the amount deposited. At present, the SSY interest rate is 7.60%.

  • ✔️Can I open the SSY account online?

    Yes. The SSY account can be opened online. You can use the authorised bank’s online facility for the same.

  • ✔️Can parents continue investing in the SSY account if they move to another country?

    No. Ideally, the scheme is available for the Indian residents only. If any family shifts abroad or acquires the NRI status, they cannot continue investing in the SSY scheme.

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