Sukanya Samriddhi Yojana (SSY): Eligibility, Interest Rate, Tax Benefits & Rules

Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana is launched on 22^nd January 2015 by Mr. Narendra Modi, Prime Minister of India. This yojana is a prosperity scheme for the girl child in India under the program “Beti Bachao Beti padhao”. For girl children in India, the SSY account guarantees a bright future for them.

The main advantage of the Sukanya Samriddhi Yojana for girl child is that this scheme takes care of the education of the girl child and when she grown adult, the scheme also takes care of her marriage expenses. This scheme is very popular among the common people. Parents and Guardians of girl child likes this scheme because, it would offer independence and financial security to the girl child.

The Sukanya Samriddhi Yojana comes under the small savings scheme. To join this scheme, the age of the girl child is 10 years or less than 10 years. The minimum deposit is Rs. 1,000 and the maximum deposit limit is Rs. 1, 50,000. The rate of interest on this scheme is 8.1%.

Sukanya Samriddhi Yojana Interest Rate 2019

The Sukanya Samriddhi Yojana interest rate for July to September 2019 (Q2, FY 2019-20) is 8.4%. The interest rate on the Sukanya Samriddhi Yojana is fixed by the government and reviewed every quarter of the financial year.

Rules of Sukanya Samriddhi Yojana

• When the girl child reaches the age of 18, you can close the account and withdraw the entire amount for the girl child marriage.
• If you want a duplicate passbook, then you need to pay rupees fifty.
• Fifty percent payment facility after the girl child turns eighteen.
• The amount can mature after twenty-one years.
• A maximum of two or three accounts are opened in case the youngest child are twin girls.
• The period of deposit is twenty-one years from the date of opening the account.
• The amount can mature after twenty-one years.
• You can also easily transfer your Sukanya Samriddhi Yojana free from one post office to another post office. But for transfer from post office to bank and bank to post office, you need to pay Rs. 100. One once in a year, you can do the transfer.
• After the account reaches the stage of maturity, there is not any interest offered to you
• When the girl child reaches the age of eighteen, or she has passed the class 10th exams, you can partially withdraw some amount for girl child education.
• On 10th day of each month, rate of interest would be calculated. In the beginning, rate of interest was calculated on fifth day of the month.
• Amount can also be deposited by the girl child.
• You can also deposit the required amount online.
• If you adopted a girl child, you can also open the SSY account.
• The deposit mode is online transfer, Demand Draft, Cheque, Cash and internet banking.
• If your payment is irregular, then you need to deposit a penalty of Rs. 50/- per year along with the certain minimum amount every year.

Important Points Related to Sukanya Samriddhi Yojana

• From the post office to post office, or post office to bank or vice-versa, the Sukanya Samriddhi Yojana Account is transferrable across the India
• From the day you opened this account, the duration of maturity of the account is twenty-one years.
• In this scheme, you require to pay for a time period of fourteen years
• In a year, you cannot deposit more than Rs 1, 50,000.
• The minimum amount required for opening the account is rupees one thousand only. After that, multiple of Rs. 100 would be added to the account with minimum Rs. One thousand every year
• You require to submit the certificate of birth of the girl child, if you wish to open the account for SSAY.
• To open this account, you can go to any authorized bank or post office.
• For each girl child, you can open only one account.
• You can open this account under the name of the girl, till the girl reaches the age of ten years.
• The guardian or parent of the girl child would be depositor of the account.

Sukanya Samriddhi Yojana Age Limit

The parents or legal guardian of the girl child can open the Sukanya Samriddhi Yojana Account anytime, under this scheme, during the birth time of the child, till the girl child will reach the age of ten year. A girl who reaches the age of ten years, before one year after the announcement of this scheme, can also open this account in her name.

Documents Required for Sukanya Samriddhi Yojana

The following documents are required for opening the Sukanya Samriddhi Yojana Account.

• Identity Proof of the legal guardians/parents: Voter ID card, Matriculation certificate, PAN card and passport issued by the Indian Government verified the identity of the parents or legal guardians of the girl child.
• Address Proof of the legal guardians/parents: Ration Card, Voter ID Card, Telephone Bill, Electricity Bill, Driving License, and Passport would be the address proof documents.
• Birth Certificate of the girl child: The birth certificate is issued by the hospital, where your girl child is born. In some cases, the following certificates are also valid:
  1. Aadhar Card of the girl child
  2. PAN card of the girl child
  3. Passport of the girl child
  4. Certificate issued by the school principal verifying date of birth.

You can open Sukanya Samriddhi Account in twenty-eight authorized banks by Reserve Bank of India and any post office in India. During the time of opening the account, in the post office or the bank, it is not essential for the girl child to be present there.

List of Authorised Banks for Sukanya Samriddhi Account

Here is the list of authorised banks (public and private) where parents can contact to open Sukanya Samriddhi Bank Account –

Rules for Premature Closure of Sukanya Samriddhi Account (SSA)

The Sukanya Samriddhi Account can be prematurely closed in following two conditions.

• In case, if the central government thinks that it is difficult for the legal guardian or parent to run the account properly, this account can close prematurely. For this purpose, permission of central government would be required on conditions such as life-threatening diseases or medical exigencies
• If the account holder dies. In that case, the legal guardian or parent of the girl child have to produce a death certificate issued by competent authorities. The interest earned till the previous month along with the balance before the date of closing would be given to the parent or guardian of the girl child.

Withdrawal Rules for Sukanya Samriddhi Account (SSA)

Before the age of eighteen years of girl child, there is no any withdrawal but up to 50% of the amount can be withdrawal in the following two conditions:

• To fulfill the financial needs of the marriage
• For the higher education of the girl child

Advantages of Sukanya Samriddhi Account

The biggest benefit of Sukanya Samriddhi Account is that it has EEE tax exemption. The account deposits would be tax free. The amount of maturity and proceeds would be getting tax exemption under section 80 C. This is one of the main reasons that Sukanya Samriddhi Yojana is also compared with public provident fund but the tax exemption limit is only Rs. 1.5 lakhs. The interest earned on this account can also be exempted from the tax.

Disadvantages of Sukanya Samriddhi Account

1. There is no facility of online transfer in post office - The lack of online transfer facility is one of the biggest drawbacks of this scheme. These days, every work is done via internet. This will also increase the load of work on the post offices.
2. 21 years high lock in period - The lock-in duration of twenty-one years is not suited to all people. The matured amount can only be withdrawal for the higher education or the marriage of the girl child.
3. Premature withdrawal is not permitted - Since premature withdrawal is not allowed, many people are not interested in this scheme.
4. The rate of interest is not fixed - The interest rate is not fixed. It changes every year. Sometimes it is more, and sometimes it is less.

Sukanya Samriddhi Yojana Calculator

A Sukanya Samriddhi Yojana calculator can help you to determine the returns you receive as per the invested amount and tenure.

Formula Used in Sukanya Samriddhi Yojana Calculator

The formula used in Sukanya Samriddhi Yojana Calculator is –

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

Where,

A represents Compound interest, P Principal Amount, r Rate of interest, n Number of times interest compounds in a year, and t Number of years