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Know everything about Sukanya Samriddhi Yojana or SSY here. Find details like its features, benefits, tax benefits, eligibility, documentation, application process & more.

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About Sukanya Samriddhi Yojana

Ideally, Sukanya Samriddhi Yojana is a government scheme.

Sukanya Samriddhi Yojana or SSYThe main aim of the scheme is to offer benefits to the girl child. It works mainly under the initiative of “Beti Bachao – Beti Padhao.”

Parents of 10 years or a young girl child can open an account on behalf of the minor under this scheme. Besides tax benefits, the scheme also offers a plethora of benefits.

One can quickly get access to the scheme by visiting any of the post offices or banks across the country.

Like all other schemes, the interest of this scheme is also updated quarterly. The current interest rate is 7.6%.

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    Who is eligible to open Sukanya Samriddhi Account?

    Check the eligibility here –

    • The parent or legal guardian of the girl child can open an account on behalf of the girl child.
    • The girl child’s age should be less than ten years.
    • Only one account per girl child is permissible.
    • Per family, only two accounts are permissible.

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    Minimum and Maximum investment required in SSY

    Rs.250 is the minimum contribution, and Rs.1.50 lakh is the maximum annual contribution towards Sukanya Samriddhi Yojana.

    One needs to invest the minimum amount for at least 15 years from the time of account opening. Post that account will continue to earn interest until maturity.

    How can you invest in Sukanya Samriddhi Yojana?

    One can invest in this scheme by visiting their nearest bank branch or post office.

    All you need to do is submit your KYC details, including Passport, Aadhaar Card, etc., along with the form and minimum initial deposit amount.

    The scheme is mainly to ensure the success of the initiatives of Beti Bachao, Beti Padhao Yojana.

    Some of the documents required to invest in the Sukanya Samriddhi Yojana:

    • Girl child’s birth certificate.
    • Legal guardian’s or parent’s photo Id.
    • Address proof of the legal guardian or parent of the girl child.

    Application form of Sukanya Samriddhi Yojana or SSY

    You can obtain the application form of the Sukanya Samriddhi Yojana by visiting a nearby post office or bank. Additionally, you can also download the application form from the RBI portal.

    Steps to download the application form of Sukanya Samriddhi Yojana:

    • Firstly you need to visit the official portal of the Reserve Bank of India.
    • You can also visit the individual websites of the banks.

    Tips to make application easier

    • After downloading the application form from either of the sources, you need to fill in some key details.
    • You need to firstly fill in the name of the primary account holder, that is, the girl child.
    • Write the name of the joint holder or the legal guardian.
    • Then fill in the minimum initial deposit amount.
    • You need to fill in the Cheque/DD Number and Date for the initial deposit.
    • Besides the birth certificate details, you also need to fill in the date of birth of the girl child.
    • A parent or legal guardian’s identity.
    • The address of the parent or legal guardian.
    • KYC details, including PAN and Aadhar, etc.

    After you fill in these details, you need to submit the form after signing it. You also need to submit the copies of documents required with the account opening authority.

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    Tenure of SSY

    The scheme features a tenure of 21 years when the girl child gets married or until she attains maturity, i.e., 18 years.

    But you need to deposit the minimum amount only for 15 years. Post that account continues to earn interest till maturity.

    Critical features of Sukanya Samriddhi Yojana

    • If the applicant fails to make the minimum deposit under the Sukanya Samriddhi Yojana, then the account will be known as the default account. Until maturity, the default account is eligible to earn interest as per the rates applicable.
    • In case of death of the girl child, premature closure of the account under the scheme is permissible. You can also avail of it if the girl child is undergoing some treatment for a life-threatening disease or the death of the guardian.
    • After the girl child attains maturity at the age of 18 years, she can operate her own account. But she has to submit all the necessary documents to the respective bank or post office.

    Pros of investing in Sukanya Samriddhi Yojana or SSY

    The scheme is introduced under the initiative of Beti Bachao, Beti Padhao Yojana initiative.

    The investors are offered a plethora of benefits:

    • In some exceptional cases, only more than two accounts can be opened under a family. If a girl child is born after twin or triplet girls, then the scheme is not available. You can open a third account if a girl child is born before the birth of twins or triplet girls.
    • You can avail of a tax deduction under Section 80C up to Rs. 1.5 lakh annually.
    • The deposit options are quite flexible as the minimum deposit amount is Rs.250.
    • Backed by the government of India so you can get fixed returns.
    • You can get the benefit of compounding as it is a long term investment.
    • One can also free transfer from one part of the country to another if the parent or guardian is transferring.

    How can you check the balance under Sukanya Samriddhi Yojana?

    You can quickly check the balance under the scheme through net banking if your account is maintained with the bank.

    But you need to make sure that the account is linked to your current net banking account. You cannot check the balance online currently if you have an account at the post office.

    Taxation under SSY

    Sukanya Samriddhi Yojana is designed as EEE from a taxation perspective. In simple terms, everything is eligible for the exemption, including the principal and interest.

    As per the current taxation rules SSY, the tax deduction benefit is up to Rs 1.5 lakh per annum. It is applicable under Section 80C of the Income Tax Act, 1961.

    The girl child can withdraw 50% of the amount only after she attains maturity.

    Terms applicable under premature closure of Sukanya Samriddhi Account

    A girl child is eligible for premature closure once she attains maturity at the age of 18. But under some exceptional cases, the account is suitable for closure.

    • The untimely death of the account holder- if the girl child who is the account holder dies, then the parents or the legal guardian can claim the amount and interest. The nominee of the account gets the payment immediately. But the legal guardian or parents have to show some proof of death to close the account.
    • Unable to maintain the account- if there is any kind of notice from the central government with regards to the inability of the depository to keep the account, then it can be closed instantly. You can also seek closure if you are going through any financial stress.

    Can you avail a loan under Sukanya Samriddhi Account?

    There is no option to avail of a loan under the current rules. But you can surely avail of the loan under some other government-backed schemes.

    Conclusion: Sukanya Samriddhi Yojana or SSY

    Thus, one of the best parts about this scheme is you can quickly transfer the amount from one region to another.

    You can initiate the transfer by filling and submitting the transfer request form available at the post office. Lastly, you can also avail of the forms online.

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