Eligibility, Maximum Age, and other important information.
- Age of girl child can be between 1 day to 10 years. Only 2 girls per family are eligible.
- Girl must remain a resident of India during this duration, or no interest will be paid.
- Investment Required: ₹250 to 1.5 lakh per year for 15 years.
- Maturity after 21 years from the date of opening account or when the girl marries after the age of 18.
List of documents required and where to apply.
- Account can be opened in any post office and most of the banks.
- Documents required include birth certificate & photograph of girl child, and Identity & address proof of parent/guardian, including PAN card and other KYC documents.
- Medical certificate in case of birth of multiple girl children on a single delivery.
Tax benefits & Interest rate in year 2023
- Attractive interest Rate of 7.6% per annum. (Guaranteed return.)
- Eligible for income tax rebate up to 1.5 lakh under section 80C.
- Maturity amount is also exempt from tax.
- Premature withdraw of up to 50% of the deposit amount is allowed once the girl child attains 18 years of age.
- Premature closure is also possible in exceptional cases like death, etc.
What is SSY or Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana is a government-sponsored savings scheme in India, aimed at tackling a major problem related with the girl child – education and marriage. It was launched by the Indian government in 2015, with the objective of promoting girl child education, their welfare and to stop the practice of sex determination.
In addition to providing financial security to the girl child, the Sukanya Yojana scheme also aims to create awareness about the importance of education for girls. By investing in the future of a girl child, parents and guardians can ensure that she has access to quality education and is able to achieve her full potential.
Who Can Open Sukanya Samriddhi Account?
This scheme is open to all Indian residents. NRIs and people holding citizenship of other countries are not eligible to open this account. Under this scheme, a parent or legal guardian can open a savings account in the name of a girl child, who must be below 10 years of age at the time of opening the account.
Only one account can be opened in the name of one girl child. Further, a maximum of two Girl Childs per family can avail the benefit of this scheme. This means that if a family has 3 or more daughters, they can open SSY account only for two of their daughters. However, if twin or triplet girls are born after 1st girl child, then an exception is made to this rule.
Sukanya Samriddhi Yojana Payment Details
The minimum investment required to open and maintain a SSY account is ₹250 per annum, while the maximum amount that can be deposited is ₹1,50,000 per financial year. You can make the deposits by cash, cheque, UPI, or online transfer.
The deposits to SSY must be made for a minimum of 15 years. After this period, the sum accumulated, continues to earn interest till the maturity of scheme, 21 years from the date of opening the account. The invested amount, along with the interest earned, can be withdrawn by the girl at the maturity of the scheme.
SSY – Default Account
If a parent / guardian fails to deposit a minimum of ₹250 in a financial year, then the SSY account goes into default. Such accounts will still continue to earn interest and corpus will be paid at the maturity without a problem. However, if you want to regularize the account, you will have to pay a penalty of ₹50 per year and then you can continue to deposit money into this account.
Sukanya Samriddhi Yojana Interest Rate 2022-23
The investment in the Sukanya Samriddhi Yojana account earns an interest rate as determined by the government from time to time. For the year 2022-23, SSY accounts earned interest rate of 7.6% per annum.
No interest is payable after the completion of tenure of the SSY, i.e after 21 years from account opening. Also, no interest accrues if the girl child loses Indian citizenship or becomes an NRI.
Further, any deposit made above ₹1,50,000 per year will not earn any interest.
Sukanya Samriddhi Yojana – Tax Benefits
One of the biggest advantages of the Sukanya Samriddhi Yojana scheme is the tax benefits offered to the investor. The investment made in this scheme is eligible for tax deductions up to ₹1,50,000 under section 80C of the Income Tax Act, and the interest earned is also tax-free under Section 10 of the Income Tax Act.
The maturity amount is also exempt from income tax.
Advantages & Disadvantages of Sukanya Samriddhi Yojana
SSY offers guaranteed returns, at an interest rate that is better than fixed deposits, and even PPF accounts.
Investments to SSY are eligible for tax deduction. This is useful if you still use the Old Tax Regime.
SSY is a completely exempt (EEE) investment. You don’t pay taxes on the interest earned or the maturity proceeds.
This is an excellent way of saving money for education and marriage of girl child. Because the policy makes it very tough to withdraw money for any purpose other than higher education or marriage of girl, the chances are high that the maturity amount will only be used for welfare of girl child and not for any other purpose.
Loan cannot be availed against SSY account.
Long lock-in period of 21 years can be a significant drawback for those who want to access the funds earlier.
Premature withdrawal or closure of scheme is difficult, particularly until the girl turns 18 years old.
Unlike PPF account, you cannot extend the tenure of this scheme.
This policy is not suitable for making money for self-use due to several restrictions on withdrawal. (All of the dis-advantages listed above, actually work well for ensuring that the funds are used for the welfare of daughter only.)
How to Apply for Sukanya Samriddhi yojana Online
Currently, it’s not possible to apply for Sukanya Samriddhi Yojna online as you are required to deposit the application form along with required documents in person.
How to Open Sukanya Samriddhi Account?
You can open a Sukanya Samriddhi account at any post office or authorized branch of national banks like SBI, PNB, HDFC, ICICI, etc
To open account with them, download this form from RBI’s website here, and fill it up with the required information like initial deposit amount, mode of payment, Girl Child’s Name, Father’s Name, Date of Birth, Birth Certificate Number, Date of Issue, Issuing Authority, etc.
Similarly, provide document ID, Address, and KYC documents of parent/guardian.
Next, sign the undertaking that you or your spouse has not previously opened a SSY account on your girl child’s name.
Now attach a self-attested copy of birth certificate of child, along with your PAN card, Aadhaar card, any other KYC document, and a passport size photograph of girl child. If you have Aadhaar card of girl child, then its best to attach it with the application form.
Double check the form and submit it at the bank or the post office. Your girl child’s account will be opened in a day or two. After which you can collect the passbook from the bank/post office.
Sukanya Samriddhi Yojana Withdrawal Rules
Sukanya Samriddhi account matures after 21 years from the date of opening account. Once this time period is over, your daughter can withdraw the maturity amount into her bank account. As explained earlier, this amount is tax free. Also, if your daughter does not withdraw the balance after 21 years, the corpus does not earn any further interest.
SSY – Partial Withdrawal Rules
Sukanya Samriddhi account also allows for a partial withdrawal, up to 50% of the total savings, for the purpose of marriage or higher education of girl child. The remaining 50% of the corpus can be withdrawn only after completing the maturity date of the policy.
If partial withdrawal request from SSY account is made for the purpose of higher education of girl, then it’s necessary that the girl child has passes the 10th standard or attained the age of 18, whichever is earlier.
If partial withdrawal request from SSY account is made for the purpose of marriage, the girl must have attained the age of 18 years.
SSY Premature Closure Rules
Sukanya Samriddhi account can be closed prematurely in several cases. However, the policy must still complete the 5 year mandator lock-in period.
Here is a list of major reasons when the accounts officer may allow for pre-mature closure of the SSY account:
- Death: Sukanya Samriddhi account can be closed in case of death of either the account holder or the parent/guardian.
- Marriage: You can close the SSY account prematurely if your girl is getting married and has attained the age of 18 years.
- Financial Issues: If it is getting very difficult for the guardian or the parents to continue with the policy due to lack of funds, then you can submit a written application to the accounts office. You will need to prove your inability to pay 250 rupees per year.
- Life-threatening illness: It is also possible to close SSY account prematurely on compassionate grounds, when the account holder, or her parents, or sibling is suffering from a life-threatening illness. The decision in this regard is taken by account office on case-to-case basis and is not guaranteed.
In conclusion, the Sukanya Yojana scheme is a valuable savings option for parents and legal guardians looking to secure the future of their girl child. With its attractive interest rates, tax benefits, and focus on girl child education, this scheme is a great opportunity to invest in the future of the next generation.