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 SSY Account has a tenure of 21 years or until the girl child marries after the age of 18.
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Sukanya Samriddhi Yojana (SSY) Highlights
|Interest Rates||7.6% per annum (Q1 FY 2022-23)|
|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 Rates 2022
SSY Interest Rates are declared by the government quarterly. For Q1 (April-June) FY 2022-13, the interest rates have been set at 7.6% p.a.
Click here to check the historical Sukanya Samriddhi Yojana (SSY) interest rates.
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 (2022-23) 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.
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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.
Sukanya Samriddhi Yojana (SSY) Tenure/Maturity Period
Sukanya Samriddhi Yojana has a tenure equal to the time the girl child is 21 years of age or upon her marriage after attaining the age of 18 years. However, contributions only need to be made for 15 years. Thereafter the SSY account continues to earn interest until maturity even if no deposits are made into it.
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. The defaulted account can, however, also be revived prior to the completion of 15 years of account opening by paying at least Rs. 250 + Rs. 50 for each defaulted year.
- 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.
- Withdrawal can also be made from the account up to 50% of the balance available at the end of the previous F.Y. once the girl is above 18 years of age or has passed 10th standard to meet expenses relating to higher education such as fee or other such charges. Maximum one withdrawal can be made in a year, in lump sum or in instalments, for a maximum of 5 years, subject to the ceiling specified and to the actual requirement of fee/other charges.
Premature Closure of SSY Account
Premature closure can only be done by a girl child on attaining the age of 18 years for the purpose of marriage expenses. However, there are some special cases under which the account can be closed and the respective amount can be withdrawn:
- Untimely death of the account holder
In case the registered girl child unfortunately dies, the parents or the legal guardian are eligible to claim the final amount on the account and accrued interest as well. The amount will be handed over to the nominee of the account immediately. Also, the parents or legal guardian are required to submit the relevant documents verifying the death of the account holder duly attested by the concerned authorities.
- Inability to continue the account
The Sukanya Samriddhi Account can be prematurely closed if there is any kind of direction from the central government regarding the inability of the depository to carry forward the account. The closure can also be processed in case the contribution towards the account is causing any kind of financial stress to the depositor. Moreover, proper permission from the competent authorities must be generated to process the closure and settlement of the account.
It is to be noted that the closing of the account under Sukanya Samriddhi Yojana will only be catered under extreme cases such as life-threatening diseases or medical emergencies.
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How to Invest in the Sukanya Samriddhi Yojana
You can invest in this scheme through your nearby post office or designated branches of participating public and private banks. You will need to submit KYC documents like Passport, Aadhaar Card, etc. along with the required form and initial deposit by cheque/draft.
Investors will have to fill out the Sukanya Samriddhi Yojana (SSY) Application Form, which can be obtained by visiting a nearby post office or participating public/private sector bank. Alternately, you can also download the SSY New Account Application Form from the following sources:
- The Reserve Bank of India Website
- The India Post Website
- Individual websites of public sector banks (SBI, PNB, BoB, etc.)
- The websites of participating private sector banks (e.g. ICICI Bank, Axis Bank and HDFC Bank)
While there are multiple sources for downloading the SSY application form, the fields in the form will be the same regardless of source.
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.
Tax Implication of Sukanya Samriddhi Yojana (SSY)
From a taxation perspective, SSY investments are designated as an EEE (Exempt, Exempt, Exempt) investment. This means that the principal invested, the interest earned as well as the maturity amount are tax-free. Under existing taxation rules of Sukanya Samriddhi Yojana, the tax deduction benefit on the principal amount invested is up to Rs 1.5 lakh per annum under Section 80C of the Income Tax Act, 1961.
Transfer of Sukanya Samriddhi Yojana Account
One of the key benefits of the SSY 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.
Similar Blog: Kanyashree Prakalpa Yojana
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Sukanya Samriddhi Yojana (SSY) 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
- SSY 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
The table below shows the amortization schedule of the Sukanya Samriddhi Yojana.
|Financial Year||Deposit Amount (in Rs.)||Interest Earned (in Rs.)||Year-end Balance (in Rs.)|
Sukanya Samriddhi Yojana (SSY) Interest Rates: Historical
|Time Period||SSY Interest Rate (% annually)|
|Jan to Mar 2022 (Q4 FY 2021-22)||7.6|
|Oct to Dec 2021 (Q3 FY 2021-22)||7.6|
|Jul to Sep 2021 (Q2 FY 2021-22)||7.6|
|April to June 2021 (Q1 FY 2021-22)||7.6|
|Jan to March 2021 (Q4 FY 2020-21)||7.6|
|Oct to Dec 2020 (Q3 FY 2020-21)||7.6|
|Jul to Sep 2020 (Q2 FY 2020-21)||7.6|
|Apr to Jun 2020 (Q1 FY 2020-21)||7.6|
|Jan to March (Q4 FY 2019-20)||8.4|
|Oct to Dec 2019 (Q3 FY 2019-20)||8.4|
|Jul to Sep 2019 (Q2 FY 2019-20)||8.4|
|Apr to Jun 2019 (Q1 FY 2019-20)||8.5|
|Jan to March 2019 (Q4 FY 2018-19)||8.5|
|Oct to Dec 2018 (Q3 FY 2018-19)||8.5|
|Jul to Sep 2018 (Q2 FY 2018-19)||8.1|
|Apr to Jun 2018 (Q1 FY 2018-19)||8.1|
|Jan to March 2018 (Q4 FY 2017-18)||8.1|
|Oct to Dec 2017 (Q3 FY 2017-18)||8.3|
|Jul to Sep 2017 (Q2 FY 2017-18)||8.3|
|Apr to Jun 2017 (Q1 FY 2017-18)||8.4|
Can I take a loan against the balance in the SSY account?
No. The facility of loan against SSY account balance is not currently available. You can avail the option of loan against PPF instead.
Is premature closure of the Sukanya Samriddhi Yojana Account allowed?
Yes. Premature closure of the Sukanya account is allowed in certain cases. This may include compassionate grounds due to terminal illness, the unexpected demise of the primary account holder, etc. However, the decision to allow such closure is on a case by case basis.
Can I continue investing in SSY if my daughter and I move to another country?
The SSY account will have to be closed if the girl child becomes an NRI or loses her Indian citizenship.
What is the penalty if I miss my SSY account minimum annual payment?
There will be a penalty of Rs. 50 if the minimum amount of Rs. 250 is not deposited in the account during a financial year.
Is there tax on SSY account interest?
No. SSY is a completely exempt (EEE) investment hence the principal amount invested, the interest earned as well as the maturity amount are all tax-exempt.