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. A Sukanya Samriddhi Account has a tenure of 21 years or until the girl child marries after the age of 18. From April 2020, this scheme offers an interest rate of 7.6% compounded annually.
Parents can now open up to two SSY accounts for girls and a third account can be opened in case of birth of twins/triplets. Here you can get a complete insight of the scheme, how it works and what are the benefits-
Sukanya Samriddhi Yojana Interest Rates 2020
The Sukanya Samriddhi Yojana ( सुकन्या समृद्धि योजना ) interest rate FY 2020 is 7.6%, compounded annually. The interest rate is fixed by the government and revised quarterly. The following are the historic interest rates of this government scheme for the girl child:
|Time Period||Interest Rate (%)|
|April to June 2020||7.6|
|January to March 2020||8.4|
|July to Sep 2019||8.4|
|Apr to June 2019||8.5|
|Jan to March 2019||8.5|
|Oct to Dec 2018||8.5|
|July to Sep 2018||8.1|
|Apr to June 2018||8.1|
|Jan to March 2018||8.1|
|Oct to Dec 2017||8.3|
|July to Sep 2017||8.3|
|Apr to June 2017||8.4|
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Key Features of Sukanya Samriddhi Yojana
- If a 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.
- Premature closure of SSY accounts can only be processed in case of death of the girl child or in some particular cases-
- Medical treatment of the girl child against some life-threatening disease
- Death of the guardian
- 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.
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
Minimum and Maximum Amount
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.
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. This wide reach is designed to help ensure success of the Beti Bachao, Beti Padhao Yojana.
Sukanya Samriddhi Yojana (SSY) 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 Account 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.
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.
Benefits of Investing in Sukanya Samriddhi Yojana
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 for the benefit of girl child are as follows:
- Sukanya Samriddhi Account can be opened for more than two girls in some special cases which are-
- If a girl child is born after the birth of twin or triplet girls, third SSY account cannot be opened
- If a girl child is born before the birth of twin or triplet girls, or triplets are born at first then a third account can be opened
- 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 7.6% per annum for Q1 FY 2020-21) 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
How to Check Your SSY Account Balance
If your account is maintained with a participating bank branch, account balance can be checked 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 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.
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
- Interest rate for 1 year= Rs. 7, 600
- Interest rate for 15 years= Rs. 1,14,000
Value of Sukanya Samriddhi Investments at the end of 15 years assuming 7.6% per annum rate of interest = Rs. 1,614,000. Thus you can almost double your money by investing in this guaranteed return investment in the long term.
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. However, there are some special cases under which the account can be closed and the respective amount can be withdrawn:
1. 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.
2. 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.
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 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.
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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.