What is Sukanya Samriddhi Yojana? Benefits, Eligibility, Details

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana (SSY) is a tax saving scheme that allows guardians of a girl child to save and invest a sum of money and earn high returns for her future requirements. These financial needs include higher education and marriage.

Table of Contents

1 What is Sukanya Samriddhi Yojana?
2 Sukanya Samriddhi Yojana Eligibility
3 Sukanya Samriddhi Yojana Benefits
4 Sukanya Samriddhi Yojana Details
5 How to Open a Sukanya Samriddhi Account?
6 How to Fill Sukanya Samriddhi Account for the Post Office?
7 Sukanya Samriddhi Scheme Transfer of Account

Sukanya Samriddhi Yojana was launched as a part of the Beti Bachao, Beti Padhao Campaign by our Honourable Prime Minister Narendra Modi on 22 January 2015. This model is jointly managed by the Ministry of Women and Child Development, the Ministry of Health and Family Welfare, and the Ministry of Human Resource Development.

This scheme aims for a better sex ratio by reducing gender inequalities. The primary objective of Sukanya Samriddhi Yojana is to let parents save sufficient amounts for their daughters’ higher education and marriage.

Sukanya Samriddhi Yojana Eligibility

The account can be opened in the name of the girl child till she attains the age of 10 years. Hence, every Indian girl child is eligible for this scheme from birth till 10 years.
The account has to be opened by a legal guardian in the name of the girl child only.
In a family, only two accounts for two girls are allowed to open.
A third account is allowed, in case one pair is twins.

Sukanya Samriddhi Yojana Benefits

There are various benefits of SSY offered to the investors:

High Returns

The interest rates offered under this scheme are quite high, the current rate being 7.6%.

Safe

This is a government-backed scheme, so the returns are guaranteed and the corpus is absolutely safe with the government, thus, involving no risk.

Tax Benefits

The scheme falls under section 80C of the Income Tax Act. It qualifies for the Exempt-Exempt-Exempt (EEE) category. The investment, interest earned and withdrawals are free from taxes. The deductions can only be claimed for an investment of up to ₹150,000 annually.

Amount

The minimum investment is as low as ₹250 and the maximum being ₹150,000 in a year. So, there is no need to invest a bigger amount when you’re short of funds.

Premature Withdrawals

Up to 50% of the amount is allowed to be taken out on attaining 18 years of age in case of the girl’s higher education.

Tenure

The investments have to be made for a continuous period of 15 years. Thus, the scheme promotes long term disciplined investing.

Sukanya Samriddhi Yojana Details

Sukanya Samriddhi Yojana Interest Rate

The interest rate offered to subscribers under this scheme is higher than most of the available investment options.
The rates are revised quarterly. It is 7.6% for this quarter.
Sukanya Samriddhi Yojana interest is always 0.5% higher than what is offered in the Public Provident Fund (PPF).
The interest earned is reinvested in the accumulated amount, so it is compounded annually.

Sukanya Samriddhi Yojana Account Maturity

The scheme clearly states that the investments are to be made for 15 consecutive years by the guardian.
The investment will mature after 21 years of opening the account.
So, even if you do not invest any amount after the completion of the 15th year, the interest will be earned on the accumulated funds.
The inability to do so in one or more years will lead to the deactivation of your Sukanya Samriddhi Account. There will be a penalty of ₹50 if you wish to reactivate it. Apart from this charge you also have to deposit the sum of the total amount you missed during the default years.

Sukanya Samriddhi Yojana Rules

Any Indian guardian of an Indian girl who is not more than 10 years old, can open a Sukanya Samriddhi Account.
Only one account per girl child is permitted, and two accounts per family.
Sukanya Smariddhi deposit rules include a minimum yet mandatory deposit of ₹250 for 15 years. The upper limit of investment is ₹150,000. The scheme also qualifies for deductions under section 80C.
Sukanya Samriddhi Account can be opened in any post office or authorized bank branch near you.
Closure of accounts is possible after 21 years of opening.
Premature closure is only allowed in case of death of the girl or guardian, or change in residential status of the girl, or marriage of the girl at 18 years.
Partial withdrawal before maturity is possible at 18 years for higher education to meet fees and other expenses.
The account is easily transferable anywhere in India, in case of a change of address within the country.

Sukanya Samriddhi Account

The account opened under this yojana is Sukanya Samriddhi Account. You can operate all your transactions related to the scheme from this account only.
It can easily be opened from any of your nearest post offices or authorized bank branches.
There is no provision of online account opening as of now.

How to Open a Sukanya Samriddhi Account?

Follow the given steps to open an SSY account:

Step 1: On visiting the nearest branch, fill up the application form for Sukanya Samriddhi Scheme.

Step 2: Give all the required details and attach the necessary documents.

Step 3: Make your first investment through cash/cheque/demand draft.

Step 4: The transaction will be processed by the institution and you will receive a passbook for the account as well.

Documents required to open Sukanya Samriddhi Account

A birth certificate of the girl child is required.
ID and address proof of the guardian.
Any other documents required by the bank/post office.

How to Fill Sukanya Samriddhi Account for the Post Office?

Let’s look into the details of how to fill the SSY form in the post office.

Start by entering the branch name on top of the form.
If you have a savings account with the post office, mention the account details or leave the column blank.
Now mention the proper address of the branch.
Add photos and documents as required.
The post office offers a common form for all its schemes. So tick on the Sukanya Samriddhi Scheme in the options.
Write the account holder’s details.
Now, fill in the deposit details like the amount and mode of payment.
Further, add the date of submission and signature.
Fill in the nomination details if you wish to, although it’s better to do so.
Finally, submit the form with documents and deposit amount to receive the passbook, confirming the transaction.

Sukanya Samriddhi Scheme Transfer of Account

One can easily transfer their Sukanya Samriddhi Account anywhere in the country if required. It can be transferred from the bank to the post office or vice versa.
You need to fill the transfer form, add in the new address and submit it along with the required documents and account passbook in the bank or post office.
The institution will verify your documents. On successful verification, the request for transfer will be processed. After the completion of this process, your documents will be returned to you.
Now visit the new bank/post office of your area and complete the transfer formalities there as well. You will be asked to submit KYC, photographs, specimen signature and some proofs.

Note– If the girl child is a minor and is not operating the account, she does not have to visit the branch.