Sukanya Samriddhi Yojana is a scheme launched by the Central Government with the aim to secure the future of a girl child.
Under this scheme, parents of a girl child in India can open a Government of India-backed savings account at any post office or licensed commercial bank.
In this article, you will get to know the following points about the Sukanya Samriddhi Yojana savings account,
Let’s see each of these points in detail.
Sukanya Samriddhi Yojana Basic Info
|Name of the scheme
|Sukanya Samriddhi Yojana
|Government of India
|Girl child in a family
Interest Rates of Sukanya Samriddhi Yojana
The interest rate on Sukanya Samriddhi Yojana (SSY) is determined by the government and revised quarterly.
|SSY Interest Rate
Interest rates of previous quarters:
|SSY Interest Rate
The interest rate is compounded annually and credited to the account at the end of each financial year. The interest rate on SSY is usually higher than other small savings schemes and offers tax-free returns.
Benefits of Sukanya Samriddhi Yojana
Some of the benefits of Sukanya Samriddhi Yojana (SSY) are:
- SSY is meant to meet the education and marriage expenses of a girl child. A premature withdrawal of up to 50% of the balance is allowed after the girl child attains the age of 18 for these purposes.
- SSY provides a higher rate of interest than other savings plans that offer financial security for the girl child.
- SSY offers tax benefits under Section 80C of the Income Tax Act, of 1961. The principal amount deposited, interest earned during the entire tenure, and maturity benefits are tax-exempt.
- SSY has a flexible deposit limit. The minimum deposit amount is Rs. 250 per year and the maximum deposit amount is Rs. 1.5 lakh per year.
- SSY has a long maturity period. The deposits can be made for 15 years and the account matures after 21 years or when the girl child marries after the age of 18, whichever is earlier.
- SSY account can be transferred anywhere in India from one post office/bank to another in case of a change of address or convenience of the account holder.
- SSY guarantees maturity benefits even if the account is not closed after maturity or if no deposits are made after 15 years.
- SSY account can be opened for up to two girl children in one family. In the case of twins/triplets, more than two accounts can be opened on submission of an affidavit and birth certificates.
Eligibility of Sukanya Samriddhi Yojana
The eligibility criteria for Sukanya Samriddhi Yojana (SSY) are,
- The scheme is only for resident Indian girl children. NRIs are not eligible to invest in the scheme.
- The account can be opened by a parent or legal guardian of the girl child.
- The girl child must be below the age of 10 years as of the date of opening of the account.
- Only one account can be opened in the name of a girl child.
- A family can open only two accounts for two girls under this scheme. A third account can be opened in case of the birth of twins/triplets.
Withdrawal rules of Sukanya Samriddhi Yojana
The rules to withdraw from the Sukanya Samridhi Account are,
- You can withdraw from the SSY account when it matures, i.e., after 21 years from the date of account opening. The entire amount along with the accumulated interest shall be payable to the account holder.
- There can be no withdrawal before the girl child (in whose name the account has been opened) has attained the age of 18 years.
- The girl child can withdraw up to 50% of the amount in the account when she attains 18 years of age, for the purposes of higher education or marriage.
- The withdrawal can be made in one lump sum or in installments, not exceeding one per year, for a maximum of five years, subject to the ceiling specified and subject to the actual requirement of fee/other charges.
- You must submit a withdrawal application form, evidence of identification, proof of citizenship, and proof of domicile.
- You can also close the account prematurely after 21 years from the date of opening or when your girl child reaches the age of 18 years old and marries (one month before or three months after the date of marriage).
- If the account holder passes away, the account will be immediately closed, and the remaining balance, along with any accrued interest, will be paid to the account holder’s guardian
List of Banks offering Sukanya Samriddhi Savings Account
The accounts under Sukanya Samriddhi Yojana can be opened with different banks in India. These banks are given the authority by the Indian Government to open SSY accounts with a minimum deposit of Rs.250.
Some of the banks that offer Sukanya Samriddhi Yojana are:
- Axis Bank
- Punjab National Bank
- Canara Bank
- Union Bank of India
- ICICI Bank
- Central Bank of India
- IDBI Bank
- Indian Bank
- Dena Bank
- State Bank of India and its associates
- Bank of Maharashtra
- Punjab & Sind Bank
- Indian Overseas Bank
- UCO Bank
- Bank of India
- Bank of Baroda
- Vijaya Bank
The account can also be opened at post offices.
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