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Puneinvest > Blog > Post Office > Sukanya Samriddhi Yojana: Complete Guide
Post OfficeChild Planning

Sukanya Samriddhi Yojana: Complete Guide

Last updated: 2022/12/29 at 10:53 PM
Rajendra Todkar Published November 10, 2022
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A Sukanya Samriddhi Yojana Account can be started by a guardian at any time after a newborn girl is born until she turns ten.

Contents
Sukanya Samriddhi Yojana (SSY) HighlightSukanya Samriddhi – Interest Rate Chart 2022Sukanya Samriddhi Yojana- Historical Interest Rate Sukanya Samriddhi Yojana – BenefitsHigh Interest RateGuaranteed ReturnsFlexible InvestmentThe Benefits of CompoundingInvestment PeriodConvenient TransferTax benefitsHow is Sukanya Samriddhi Yojana interest calculated?Sukanya Samriddhi Yojana CalculatorSSY – DisadvantageProcedure for Opening a New AccountSukanya Samriddhi Yojana (SSY) EligibilityDocument Requirement for SSY List of Bank provide SSY AccountMaturity Withdrawal Rules –Maturity –Partial WithdrawalEarly WithdrawalWhat should an Investor do?Sukanya Samriddhi Yojana – FAQsHow many years do I need to be paid to Sukanya Samriddhi Yojana?What is the method by which the SSY rate of interest is calculated every month?Is Sukanya Samriddhi Yojana interest rate fixed?Can the Sukanya Samriddhi account open twice for a child?When interest credited Sukanya Samriddhi Yojana?Is Sukanya Samriddhi Yojana compound interest?Can I open an SSY account online?Is PAN card mandatory for Sukanya Samriddhi Yojana?Can I pay online Sukanya Samriddhi Account?How do interest rates regulate in Sukanya Samriddhi Yojana?Is Sukanya Samriddhi interest tax free?What’s the penalty for me if I fail to make my SSY account’s minimum annual payments?Can I get loan against the balance in my SSY account?How much money can be deposited into the account?Can both parents claim a tax deduction for the Sukanya Samriddhi deposit amount under section 80C?Is it possible to open a SSY account under the name of an NRI girl child?Is there a final date to apply for Sukanya Samriddhi Yojana?

The account can be opened at any post office or a commercial bank’s authorized branch.

The scheme offers a range of tax advantages. For instance, it offers the income tax benefit in Section 80C of the Income Tax Act, 1961.

Additionally, the amount of returns and maturity are tax-free in the scheme.

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Sukanya Samriddhi Yojana (SSY) Highlight

Interest Rate 7.60% per annum w.e.f. – 01, 2022
Minimum Deposit Rs. 250
Maximum DepositRs. 1,50,000 (every Financial Year)
Maturity Period21 Years or girl child marriage after age 18+
Eligibilitychild age below 10 year
Deposit Period15 Year form opening date
SSY 2022- Highlights

Sukanya Samriddhi – Interest Rate Chart 2022

The Sukanya Samriddhi Yojana scheme currently offers 7.60% interest rate . 

Sukanya Samriddhi Yojana- Historical Interest Rate

Period Interest Rate (%)
03.12.2014 TO 31.03.20159.10%
01.04.2015 TO 31.03.20169.20%
01.04.2016 TO 30.09.20168.60%
01.10.2016 TO 31.03.20178.50%
01.04.2017 TO 30.06.20178.40%
01.07.2017 TO 31.12.20178.30%
01.01.2018 TO 30.09.20188.10%
01.10.2018 TO 30.06.20198.50%
01.07.2019 TO 31.03.20208.40%
01.04.2020 TO 31.03.2022 7.60%
SSY Historical Interest Rate Since Inception

Sukanya Samriddhi Yojana – Benefits

High Interest Rate

SSY provides the highest annual fixed return (currently 7.6 per cent per annum) for the Q3 financial year 2022-23.

Guaranteed Returns

SSY is a scheme supported by the government that guarantees returns.

Flexible Investment

A person can make a minimum amount of Rs. 250 for the year and a maximum of Rs. 1.5 lakh per year.

This will allow people of various financial backgrounds to engage in the initiative.

The Benefits of Compounding

SSY is a fantastic long-term investment option because it benefits from annual compounding. As a result, even the smallest investments will generate a high return over time.

Investment Period

Despite the SSY scheme’s 21-year term, just the first 15 years of deposits are required. Thereafter, until maturity, no additional payments are required, but the account will remain open.

The girl child is permitted to contribute to the SSY account independently after the age of 18, even though the parents are also permitted to do so.

Convenient Transfer

SSY account can be transferred from one area within the India to the other (bank/post office) when the transfer is made by the parent or guardian responsible for this Sukanya Samriddhi Account.

Tax benefits

SSY gives tax deductions under Section 80C, up to 1.5 lakh per year.

SSY offers the highest tax-free yield with a sovereign guarantee and is exempt-exempt-exempt (EEE) classification. A year-long deposit (contributions) is eligible for Section 80C benefits, and maturity benefits are not tax-deductible.


How is Sukanya Samriddhi Yojana interest calculated?

The interest rate on your deposits will be calculated based on the account’s lowest balance. Sukanya Samriddhi Bank Account between the 5th and the end of each month.

To receive a higher interest rate, the depositor must make the deposit before the 5th day of each month. 
At the end of each fiscal year, the interest will be credited to the account.


Sukanya Samriddhi Yojana Calculator

The value of an investment is only determined by how the investment will grow over time. Here is a sample calculation of the high yields you can earn through contributions towards the Sukanya Samriddhi Yojana.

Let’s say: The girl child will be born in 2021. Parents open an SSY account on her behalf during 2021. The account will mature at 21, and the girl child receives the total maturity amount.

Yearly Investment in SSY1,50,000
Duration of Investment15 Year
SSY Interest Rate7.60%
Total Investment22,50,000
Total Interest earn43,43,071
Total Maturity Value 65,93,071
SSY- Calculator 15 year maturity
Sukanya 15 year deposit valuation
SSY 15 Year deposit valuation

SSY – Disadvantage

The account’s deposits can be made until the end of 15 years, beginning with the account’s opening.

So, for a child aged 10 deposit, the account must be maintained until the child reaches the age of 25. Between the ages of 25 to 31. Maturity @age of 31 is not beneficiary for child.

You can withdraw money at the time of daughter’s marriage. There is also a rule for this that you can close the account till 30 days before the date of marriage or within 3 months after marriage.

If you delay while withdrawing money then it becomes difficult to withdraw money.


Procedure for Opening a New Account

The regulations about Sukanya Samriddhi Yojana were announced by the government on 12 December 2019.

Sukanya Samriddhi Yojana (SSY) Eligibility

  • Only a girl’s child’s parents or legal guardians can create an SSY account.
  • The girl child must be younger than 10 when opening an account.
  • One account is allowed to be opened under the name of the girl child
  • Only two SSY accounts are permitted for families, i.e. one account for each girl child.
  • If a girl was born in the wake of triplets or twins, the third SSY account can’t be opened

Document Requirement for SSY

The following documents are required to open a Sukanya Samriddhi Account:

  • Photograph of the applicant
  • Aadhaar number of the guardian
  • The guardian’s PAN
  • Certificate of birth for girl
  • KYC documents, i.e., proof of identity and evidence of address

List of Bank provide SSY Account

  • United Bank of India
  • UCO Bank
  • Punjab National Bank
  • Oriental Bank of Commerce
  • Indian Bank
  • ICICI Bank
  • Corporation Bank
  • Bank of India
  • Axis Bank
  • Allahabad Bank
  • Vijaya Bank
  • Union Bank of India
  • Syndicate Bank
  • Punjab & Sind Bank
  • Indian Overseas Bank
  • IDBI Bank
  • Dena Bank
  • Central Bank of India
  • Bank of Maharashtra
  • Bank of Baroda
  • Andhra Bank
  • Canara Bank
  • State Bank of India

Maturity Withdrawal Rules –

Maturity –

The account will mature upon its completion 21 years after its Opening.

The account’s maturity could be allowed before 21 years if the account holder submits a request in connection with marriage.

Account holder, i.e. girl child, is required to provide a statement signed by a non-judicial stamp papers and signed by a Notary and accompanied by proof of age to prove that she will not be under 18 years of age at the date of the wedding.

A closure of this kind will not be granted one month before or after 3 months from marriage.

Partial Withdrawal

To satisfy the financial needs that the account holder must meet to pursue higher studies, the withdrawal of 50% of the balance to the account’s balance at the close of the previous financial year is permitted.

But, withdrawals can be allowed only after the account holder is age 18 or is in the 10th standard or earlier.

It is not only an application in writing and documentary proof in the form of a valid admissions offer from an educational institution or an demand from the institution confirming that the financial requirements are necessary.

The withdrawal amount is limited to the actual amount of fees and other charges required to be paid at the time of entry, as stated in the offer of admission or on the appropriate fee slip that the institution/college issues.

The withdrawal may be made as a lump sum or in instalments of not more than once per year, maximum five years, subject to a maximum amount confirmed by the institution/college of education.

Early Withdrawal

The SSY rules allow exit from the scheme after 5 years but only if there is a medical emergency.

In the event of the account owner’s death, your account is closed as soon as the authority in charge presents the death certificate.

The balance on your account will be paid together with interest due until the date of death in the guardian’s name.

If the registered girl child dies, parents or legal guardians may be entitled to the amount remaining on the account and accrued interest.

The money will be transferred to the person who is the nominee for the account right away. Additionally, parents or legal guardianship representatives must provide the valid documents confirming your account holder’s death, signed by the authorities concerned.

The interest rate for the period between the dates of death and the closing date of the account will be the interest rate that applies to savings accounts at the post office for balances in the Sukanya Samriddhi Account.

Accounts may be closed early for extraordinary, humanitarian reasons such as medical treatment for a female child’s life-threatening illness or the death of a guardian who is triggering the operation, or if continuous use of the account is causing undue stress to the account holder (girl).

This is permissible if the account has been in operation for at least five years after it was first opened. Only after all the appropriate documentation has been received can the account be prematurely closed.

It’s important to note that the Sukanya Samriddhi Yojana account can only be closed in exceptional cases, such as life-threatening illnesses or medical problems.


What should an Investor do?

Even though interest rates are always changing, SSY has a high effective interest rate when accounting for tax advantages. Additionally, it is a debt asset with a fixed income that will support long-term fund accumulation for child needs. For long-term objectives, such as building a sizable corpus, be sure to save through equity mutual funds as well.


Sukanya Samriddhi Yojana – FAQs

How many years do I need to be paid to Sukanya Samriddhi Yojana?

Deposits can be made until the end of 15 years from the opening date.

What is the method by which the SSY rate of interest is calculated every month?

No. The interest is calculated on an annual basis. Credited in account end of every financial year.

Is Sukanya Samriddhi Yojana interest rate fixed?

Interest is not Fixed. Every quarter, the Ministry of Finance announces the prescribed rate for the SSY account.

Can the Sukanya Samriddhi account open twice for a child?

Sukanya Samriddhi scheme only allows just one bank account is open against a single girl.

One SSY account for each girl child is permitted. If there are two girls, you can open two accounts in each of their names. If you only have one daughter, only one account is used.

When interest credited Sukanya Samriddhi Yojana?

Interest will be credited to your account by the close of the financial year.

Is Sukanya Samriddhi Yojana compound interest?

Yes. Interest is calculated annually on a compound basis.

Can I open an SSY account online?

No. First you can open an account physically with KYC documents, and then you can make a deposit online. Certain banks offer online transfer facilities.

Is PAN card mandatory for Sukanya Samriddhi Yojana?

No. The only requirement is KYC Document..

  • Address Proof,
  • ID Proof
  • Child Birth Certificate

Can I pay online Sukanya Samriddhi Account?

Certain banks offer online payment facilities, also provide auto debit facility.

How do interest rates regulate in Sukanya Samriddhi Yojana?

The government sets interest rates for small savings and post office schemes on in a quarterly basis.

SSY falls under this class and, consequently, the announcement of interest rates in each quarter, based on the G-sec or government security (G-sec) rates.

The interest rate will not stay fixed for the full 21 years once a SSY account has been opened.

Is Sukanya Samriddhi interest tax free?

Yes. SSY is an exempt (EEE) investment. Therefore, the principal amount of money invested and the interest earned and the amount due at maturity are tax-free.

What’s the penalty for me if I fail to make my SSY account’s minimum annual payments?

There is a penalty of Rs. 50 if you fail to deposit the required amount, which is Rs. 250, has not been deposited in the account during the financial year.

Can I get loan against the balance in my SSY account?

No. The loan facility against Sukanya Samruddhi Yojana account balances is not at presently available.

How much money can be deposited into the account?

It can open with an initial amount of 250. After that, any amount in the range of Rs 50 or more can be deposited, requiring that a minimum amount of Rs 250 be deposited during a financial year.

However, the total amount of money deposited into the account on one occasion or in multiple instances cannot exceed Rs 150,000 during the financial year.

Can both parents claim a tax deduction for the Sukanya Samriddhi deposit amount under section 80C?

No. Only one parent or guardian is eligible for tax rebates under section 80C. The amount that is deposited within Sukanya Samriddhi.

Is it possible to open a SSY account under the name of an NRI girl child?

A girl child can be eligible to open an account on an SSY account only when she is an Indian citizen when the account first opens and is so until the account is completed.

Non-resident Indians are not able to sign up for the SSY account. Suppose your or your child’s residence status changes from resident to a non-resident or the child acquires a different country’s citizenship during the scheme’s duration.

In that case, there will be no interest due at the time of the change in citizenship or residence status and the account is taken to be closed.

Is there a final date to apply for Sukanya Samriddhi Yojana?

No. You can deposit any working day in year. There is no deadline to take advantage of the scheme. However, tax filing dates apply to this scheme to tax purposes.

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