Sukanya Samriddhi Yojana is a government-backed savings scheme as part of the “Beti Bachao, Beti Padhao Yojana” for the benefit of the girl child. It can be opened by the parents of a girl child below the age of 10. Parents can open up to two such accounts for girls (they cannot open a third/fourth account etc, if they have more than two girls). These accounts have tenure of 21 years or until the girl child marries after the age of 18.
Sukanya Samriddhi Yojana (SSY) Interest Rates
The Sukanya Samriddhi Yojana interest rate for January to March 2019 (Q4, FY 2018-19), is 8.5%. The interest rate on the Sukanya Samriddhi Yojana is fixed by the government and reviewed every quarter. The following are the historic interest rates of this government scheme for the girl child:
|Time Period||Interest Rate (%)|
|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|
Source: National Savings Institute
Eligibility for SSY Account
The following are the key eligibility criteria for opening a SSY Account as part of the Beti Bachao, Beti Padhao Yojana:
- Sukanya Samriddhi account can be opened only in the name of girl child by her parents or legal guardians.
- The girl child has to be below the age of 10 at the time of account opening.
- Multiple Sukanya Samridhhi accounts cannot be opened for a single girl child.
- Only two SSY accounts are allowed for a family i.e. one for each girl child.
How to invest in the Sukanya Samriddhi Yojana
You can invest in this scheme though 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. This wide reach is designed to help ensure success of the Beti Bachao, Beti Padhao Yojana.
Sukanya Samriddhi Yojana Application Form
The Sukanya Samriddhi Yojana (SSY) Application Form for new account 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 RBI website.
How to Download SSY Application Form Online
Sukanya Samriddhi Yojana Application form can be downloaded from various sources such as:
- 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 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.
Benefits of Investing in Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana 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 for benefit of girl child are as follows:
- Provides tax deduction benefits under Section 80C up to Rs. 1.5 lakh annually
- Flexible investment option with minimum deposit of Rs. 250 in a year (max. Rs. 1.5 lakh per annum)
- Guaranteed returns instrument backed by the Government of India (sovereign guarantee)
- Higher fixed rate of return (currently 8.5% per annum for Q4 FY 2018-19) as compared to other government-backed tax saving schemes such as PPF.
- Long term investment hence provides the benefit of compounding
- 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 Account Online Balance Check
If your Sukanya account is maintained with a participating bank branch, Sukanya Samriddhi Account online balance check can be completed easily through internet banking or mobile banking. You do however need to ensure that this account is linked to your existing net banking account for easy access to Sukanya account records. This option of online balance check for SSY accounts held with participating banks is in addition to the passbook update option by physically visiting the bank branch.
If you have opened your SSY account at an India Post Office, there is currently no way to check the balance in the account online. You will have to visit the post office branch to get your passbook updated in order to perform a balance check.
Minimum and Maximum Amount for SSY Account
The minimum annual contribution to the Sukanya Samriddhi Account is Rs.250 and the maximum of Rs.1.50 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.
Tenure of Sukanya Samriddhi Yojana Account
Sukanya Samriddhi Yojana has a tenure equal to the time the girl child is 21 years of age or upon her marriage attaining the age of majority (18 years). However contributions only need to be made for 15 years. Thereafter the account continues to earn interest until maturity even if no deposits are made into it.
Calculation Example of SSY Account Deposits
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:
Annual investments = Rs. 1 lakh
Investment Period = 15 years
Total amount invested at the end of 15 years = Rs. 15 lakh
Value of Sukanya Samriddhi Investments at the end of 15 years assuming 8% per annum rate of interest = Rs. 28.32 lakh. Thus you can almost double your money by investing in this guaranteed return investment in the long term.
Tax Rules of Sukanya Samriddhi Yojana
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.
The girl can also avail partial withdrawal facility (not more than 50% of the balance) after attaining the age of 18 years for higher education expenses.
Premature closure of Sukanya Samriddhi Account
Premature closure can only be done by a girl child on attaining the age of 18 years for the purpose of marriage expenses.
Loan on Sukanya Samriddhi Yojana Account
Under existing rules, there is no option of availing a loan on the basis of the balance available in a Sukanya Samriddhi Account. This benefit is currently available in case of another government tax saving scheme – Public Provident Fund (PPF) account which offers the benefit of loan against PPF account from the third year of subscription onwards.
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 transfer of your SSY account from a post office, you will have to fill out and submit the Sukanya Samriddhi Account 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 Sukanya deposit from one designated bank branch to another.
Q- Can I take a loan against the balance in the SSY account?
Ans- No. The facility of loan against SSY account balance is not currently available. You can avail the option of loan against PPF instead.
Q- Is premature closure of the Sukanya Samriddhi Yojana Account allowed?
Ans- Yes. Premature closure of the Sukanya account is allowed in certain cases. This may include compassionate grounds due to terminal illness, unexpected demise of the primary account holder, etc. However, the decision to allow such closure is on a case by case basis.
Q- Can I continue investing in SSY if my daughter and I move to another country?
Ans- The SSY account will have to be closed if the girl child becomes an NRI or loses her Indian citizenship.
Q- What is the penalty if I miss my SSY account minimum annual payment?
Ans- There will be a penalty of Rs.50 if minimum amount of Rs. 250 is not deposited in the account during a financial year.
Q- Is there tax on SSY account interest?
Ans- 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.