Sukanya Samriddhi Yojana: Complete Guide

A Sukanya Samriddhi Yojana Account can be started by a guardian at any time after a newborn girl is born until she turns ten.

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.

Sukanya Samriddhi Yojana (SSY) Highlight

Note – The Sukanya Samriddhi Yojana account will mature 21 years from the date of opening of the account, and not when the girl child attains the age of 21. This means that if the account is opened for a 10-year-old girl child, the account will mature when she turns 31 years old.

Sukanya Samriddhi – Interest Rate Chart Apr 2023

The Sukanya Samriddhi Yojana scheme currently offers 8.00% interest rate . 

Sukanya Samriddhi Yojana- Interest Rate History

Sukanya Samriddhi Yojana – Benefits

High Interest Rate

SSY provides the highest annual fixed return (currently 8.0 per cent per annum) for the Q1 financial year 2023-24.

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 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.

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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

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