Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme for the benefit of girl child. It is a part of the Beti Bachao, Beti Padhao Yojana and can be opened by the parents of a girl child below the age of 10. It can be opened at designated banks or post offices. A Sukanya Samriddhi Account has a tenure of 21 years or until the girl child marries after the age of 18.
What is the Sukanya Samriddhi Yojana (SSY)?
SSY aims at tackling a major problem associated with the girl child – 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 a carefree marriage expenses of their child. SSY has introduced the Sukanya Samriddhi Account for this very purpose.
- Sukanya Samriddhi Yojana (SSY) Highlights
|Interest Rates||7.6% per annum (Q1 FY 2021-22)|
|Maturity Period||21 years or until the girl child marries after the age of 18|
|Minimum Deposit Amount||Rs. 250|
|Maximum Deposit Amount||Rs. 1.5 Lakh in a financial year|
|Eligibility||Parents or legal guardian of a girl child below the age of 10 are eligible to open the SSY in the name of the girl child|
|Income Tax Rebate||Eligible for rebate under section 80C of the Income Tax Act, 1961 (Maximum cap of Rs. 1.5 Lakh in a year)|
Sukanya Samriddhi Yojana interest rate
- The rate of interest for the 2nd quarter of FY 2021-2022, i.e. 1 July 2021 to 30 September 2021, has been kept unchanged at 7.6%.
- The rate of interest for the 1st quarter of FY 2021-2022 i.e. 1 April 2021 to 30 June 2021 was 7.6%.
- The entire deposit in ‘Account under default’ (where a minimum amount of Rs 250 has not been deposited), which is not regularised within the prescribed time, would earn interest on the post savings bank account; except if the default is due to the death of the guardian who opened the Account.
Sukanya Samriddhi Yojana (SSY) Eligibility
- Only parents or legal guardians of a girl child can open an SSY account
- The girl child has to be below the age of 10 at the time of account opening
- Only one account can be opened in the name of a girl child
- Only two SSY accounts are allowed for a family i.e. one for each girl child
Note: Sukanya Samriddhi Account can be opened for more than two girls in some special cases which are-
- If a girl child is born before the birth of twin or triplet girls or if triplets are born at first, then a third account can be opened
- If a girl child is born after the birth of twin or triplet girls, a third SSY account cannot be opened
Benefits of Investing in Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana( सुकन्या समृद्धि योजना ) introduced as part of the Beti Bachao, Beti Padhao Yojana initiative, provides investors with a range of benefits. Some of the key benefits of this scheme are as follows:
High Interest Rate- SSY offers a higher fixed rate of return (currently 7.6% per annum for Q1 FY 2020-21) as compared to other government-backed tax saving schemes such as PPF.
Guaranteed Returns- Since SSY is a government-backed scheme, it provides guaranteed returns.
Tax Benefit- SSY provides tax deduction benefits under Section 80C up to Rs. 1.5 lakh annually.
Flexible Investment- One can make a minimum deposit of Rs. 250 in a year and a maximum deposit of Rs. 1.5 lakh in a year. This ensures people with different financial standing can invest in the scheme.
Benefit of Compounding- Sukanya Samriddhi Yojana (SSY) is a great long-term investment scheme as it provides the benefit of annual compounding. So, even small investments will give great returns over the long term.
Convenient Transfer- SSY account can be freely transferred from one part of the country to another (bank/post office) in case of transfer of parent/guardian operating the Sukanya Samriddhi Account.
Sukanya Samriddhi Yojana (SSY) Deposit Limits
The minimum annual contribution to the Sukanya Samriddhi Account is Rs. 250 and the maximum contribution is Rs. 1.5 lakh in a financial year. You have to invest at least the minimum amount every year for up to 15 years from the date of account opening. Thereafter the account will continue to earn interest till maturity.
Other Key Features of Sukanya Samriddhi Yojana (SSY)
- If an SSY account holder is unable to make even the minimum deposit of Rs. 250 in a financial year, his/her account will be termed as a ‘Default Account’. Till the maturity date, this default account will earn the interest rate as applicable in the scheme.
- A girl child can operate her own account after the age of 18 years. Once she is 18 years old, she is eligible for operating the SSY after submitting all the necessary documents to the post office/bank where the account is being held.
How to open a Sukanya Samriddhi Yojana Account?
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 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.
How to fill SSY Application Form
The SSY Application Form requires applicants to provide some key data regarding the girl child in whose name the investment will be made under the Beti Bachao, Beti Padhao Yojana. Details of the parent/guardian who will be opening the account/making deposits on her behalf are also required. The following are the key fields that are featured in the SSY Application Form:
- Name of Girl Child (Primary Account Holder)
- Name of Parent/Guardian opening the account (Joint Holder)
- Initial deposit amount
- Cheque/DD Number and Date (used for an initial deposit)
- Date of Birth of girl child
- Birth Certificate details of primary account holder (Certificate number, date of issue, etc.)
- ID Details of Parent/Guardian (Driving License, Aadhaar, etc.)
- Present and Permanent Address (as per ID document of parent/guardian)
- Details of any other KYC Documents (PAN, Voter ID card, etc.)
Once the above details have been filled out, the form needs to be signed and submitted with the account opening authority (Post office/Bank Branch) along with copies of all applicable documents.
Transfer of Sukanya Samriddhi Yojana Account
One of the key benefits of the Sukanya Samriddhi Yojana Account is the fact that it is easily transferable from one part of India to another. Under existing rules, you can transfer this tax-saving deposit account for benefit of girl child from one India Post Office to another or from one designated bank branch to another with ease.
To initiate the transfer of your SSY account from a post office, you will have to fill out and submit the transfer request form with the Post Master of the India Post Office where your account is currently located. Similar transfer forms are available online as well as offline in case you want to transfer the deposit from one designated bank branch to another.
Sukanya Samriddhi Yojana Calculator
The benefit of any investment can only be determined based on how much the investment grows over time. The following is a sample calculation showing the high returns you can get by making contributions to the Sukanya Samriddhi Yojana.
Let’s assume the following:
The girl child is born in 2020 and the parents start the SSY account for her in the same year. The account will finally mature after 21 years where the girl child will get the complete maturity amount.
- Annual investments = Rs. 1 lakh
- Investment Period = 15 years
- Total amount invested at the end of 15 years = Rs. 15 lakh
- Interest rate for 1 year= 7.6%
- Interest at the end of 21 years= Rs. 3,10,454.12
- Maturity Value at the end of 21 years= Rs. 43,95,380.96
How much should I invest in sukanya samriddhi yojana?
You can invest any amount from Rs.250 up to Rs.1.5 lakh per financial year in the SSY account.