Sukanya Samriddhi Yojana

The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme specifically designed for the financial security of the girl child in India. Launched under the "Beti Bachao Beti Padhao" initiative by the Government of India in 2015, this scheme aims to promote education and empower female children by securing their future through savings and investments. Let’s explore the features, eligibility, benefits, and how you can open and manage a Sukanya Samriddhi account.

What is Sukanya Samriddhi Yojana (SSY)?

The Sukanya Samriddhi Yojana (SSY) is a small savings scheme that offers parents or legal guardians of a girl child an opportunity to build a secure financial future for their daughters. The scheme allows for the deposit of a lump sum or periodic amounts into an account in the name of the girl child until she reaches the age of 21. The government offers attractive interest rates and tax benefits to encourage savings.

Key Features of SSY

Interest Rate: The SSY offers one of the highest interest rates among government-backed saving schemes. As of now, the interest rate is 7.6% per annum, which is subject to change based on the government’s review every quarter.
Tax Benefits: The scheme qualifies for tax deductions under Section 80C of the Income Tax Act, 1961. This means the deposits made into the SSY account are eligible for a deduction of up to ₹1.5 lakh per year. Additionally, the interest earned and the maturity amount are tax-free under Section 10(11).
Eligibility:
- The account must be opened in the name of a girl child under the age of 10.
- A parent or legal guardian can open only one account for a single girl child and a maximum of two accounts for two different daughters.
Deposit Requirements:
- The minimum deposit requirement is ₹250 per year, and the maximum deposit limit is ₹1.5 lakh per year.
- Deposits can be made in a lump sum or through multiple installments over the course of a year.
Maturity and Withdrawal:
- The account matures when the girl child turns 21 years of age.
- Partial withdrawals are allowed when the girl child turns 18, for her educational or marriage purposes.
- 50% of the balance can be withdrawn for educational expenses, and this can be done in one or multiple installments.
Account Tenure:
- The tenure for the SSY account is 21 years from the date of opening. However, the parent or guardian can choose to stop depositing funds once the girl child reaches 14 years old, while the account will continue to accrue interest until the maturity.

Eligibility Criteria for Sukanya Samriddhi Yojana

An account can be opened by a parent or guardian for a girl child until she reaches the age of 10.
The girl must be an Indian resident.
A maximum of two accounts may be opened for two girls within the same family.
In the case of twin girls, a third account can be opened.

Detailed Overview of Sukanya Samriddhi Yojana

Aspect	Details
Interest Rate (2024)	8.20% per annum
Investment Amount	Minimum: ₹250, Maximum: ₹1.5 lakh per annum
Maturity Period	21 years, or upon the girl’s marriage after the age of 18

How to Open an SSY Account?

Opening an SSY account is simple and can be done at any post office or authorized bank branch across India. Here’s how you can do it:

Visit the nearest authorized post office or bank.
Submit the required documents:
- Birth certificate of the girl child as proof of age.
- Proof of address of the parent or guardian.
- Proof of identity of the parent or guardian.
Fill out the Sukanya Samriddhi Yojana account opening form.
Deposit the minimum amount of ₹250 to activate the account.

Once the account is opened, you will receive a passbook that details all the transactions and balance of the SSY account.

Documents Required to Open an SSY Account

To open an SSY account, the following documents are necessary:

Completed SSY account opening form
Birth certificate of the girl child
Proof of identity and address for the depositor
A medical certificate in case of multiple children born in a single delivery
Any additional documents requested by the bank or post office

Benefits of Sukanya Samriddhi Yojana

High Returns: With one of the highest interest rates, SSY helps parents grow their savings over time, providing substantial returns when the account matures.
Government Backed: As a government-backed scheme, it is considered risk-free, ensuring the safety of your investment.
Tax-Free Interest: The interest accrued in the SSY account is exempt from tax, making it a great tool for saving with long-term benefits.
Educational and Marriage Expenses: The scheme offers partial withdrawals for the girl’s education and marriage, ensuring financial support during important milestones in her life.
Secure Future for the Girl Child: This scheme provides a reliable financial tool for parents, ensuring that their daughters have funds available when they turn 18 for higher education or marriage.
Flexible Deposits: The option to make lump sum deposits or pay in installments makes it easier for parents to save according to their financial situation.

Things to Consider Before Opening an SSY Account

Age of the Girl: The account must be opened before the girl child turns 10. If the child is older than 10, the scheme cannot be utilized.
Maximum Deposits: Though you can deposit a maximum of ₹1.5 lakh in a year, you do not have to make such large deposits if your budget doesn’t allow. Even smaller amounts will generate meaningful interest over time.
Account Management: Ensure you can make regular deposits until the child reaches the age of 14 to maximize the benefit of compound interest. Though the account continues to earn interest after the 14th year, contributions stop.
Interest Rate Changes: The interest rate is subject to revision by the government. While the interest rate has historically been favorable, it's important to keep an eye on any changes.
Premature Closure: The account cannot be closed prematurely. However, it can be transferred to another post office or bank in case of relocation.

Interest Calculation Formula for SSY

The Sukanya Samriddhi Yojana Calculator helps estimate the maturity amount based on the investment and interest rate.

The interest is calculated on the lowest balance in the account between the 5th and last day of each month and credited at the end of the financial year.

Formula for Interest Calculation:

A = P(1 + r/n)^(n*t)

P = Initial deposit
r = Interest rate
n = Number of times interest is compounded per year
t = Number of years

Conditions for Non-Payment of Sukanya Samriddhi Yojana Interest

Here are the situations when the Sukanya Samriddhi Yojana (SSY) account won’t earn interest:

Minimum Deposit Requirement: You must deposit at least ₹250 per year to keep the SSY account active.
Penalty for Inactivity: If the minimum deposit is not made, a ₹50 penalty is charged. If the penalty is unpaid, no interest will be earned.
Reduced Interest Rate: In cases of inactivity, the interest rate will be reduced to the savings account rate.
Premature Account Closure: The account can be closed prematurely after 5 years, but only due to medical emergencies or life-threatening conditions. If closed for any other reason, savings account interest will apply instead of SSY interest.

What Happens if You Deposit Less or More Than the Allowed Amount?

Less Than Minimum Deposit: If you don’t deposit the minimum ₹500 in a year, your SSY account will default. However, you can reactivate it by paying a ₹50 fine.
Excess Deposit: Any amount over ₹1.5 lakh will not earn interest. You can withdraw the excess funds at any time.

How to Fill the Sukanya Samriddhi Yojana Application Form?

Follow these easy steps to fill the Sukanya Samriddhi Yojana (SSY) application form:

Post Office or Bank Details: Write the name of the post office or bank branch and the postal address under "To The Postmaster/Manager."
Applicant’s Photograph: Paste the applicant's photograph on the right side of the form.
Applicant’s Name: Write the applicant’s name (person filling the form) next to "I/We" in the form.
Account Type: After the applicant’s name, write "Sukanya Samriddhi Yojana."
Deposit Amount: Write the amount you plan to deposit in both numbers and words.
Payment Mode: Choose how you will pay (cheque, cash, or demand draft).
Cheque/DD Details: If paying by cheque or DD, include the number and date.
Details of Girl Child: Write the name and birth date of the girl child (the beneficiary).
Guardian’s Information: Provide the guardian’s details:
- Name
- Date of birth
- Aadhar number
- PAN number
Contact and Address: Write the guardian's contact details and address.
Birth Certificate Details: Provide the details of the girl child’s birth certificate.
KYC Documents: Attach the required KYC (Know Your Customer) documents with the form.
Nominee Details: Write the details of the nominee (who will take the money in case something happens to the girl).
Signature: Sign the form with your name.
Witness Signatures: If the applicant is unable to sign (illiterate), two witnesses need to sign the form.
Nomination Section: At the end of the nomination section, write the date, place, and sign.

How to Fill the SSY Account Form for Post Office?

To fill out the SSY (Sukanya Samriddhi Yojana) account form for the post office, follow these steps:

Visit the Post Office: Go to your nearest post office and ask for the Sukanya Samriddhi Yojana account form.
Account Number (If You Have One): If you already have a savings account at the post office, write down your account number.
Branch Details: Fill in the name of the post office branch and the full address under the section that says “To The Postmaster.”
Applicant’s Photograph: Attach a passport-sized photograph of the person opening the account.
Enter Applicant Details: Write the name of the applicant (the person who is opening the account) and select “Sukanya Samriddhi Yojana” as the account option.
Account Type: Write the type of account and type of account holder (like individual or guardian for a minor).
Amount You Will Deposit: Mention the amount you plan to deposit once the account is opened.
Personal Information: Fill in other personal details such as the gender, Aadhaar number, PAN (if available), and your full address.
Sign to Confirm: On the first page, sign to confirm that all the information you’ve provided is correct.
Standing Instructions: On page 2, section 5, provide details if you want to set up automatic payments for your SSY account.
Confirm No Other SSY Account Exists: Tick the box that confirms you don’t have any other Sukanya Samriddhi Yojana account.
Date and Signature: Write the date and sign at the end of the form.
Nomination Details: You may need to provide details for a nominee (someone to take over the account if the account holder is no longer able).
Witness Signatures: If the applicant is illiterate, two witnesses need to sign the form as well.
Final Signature: Add the place, date, and signature at the end of the nomination section.

How to Pay for SSY Online?

To pay for your SSY account online, follow these steps:

Download the IPBB App: Download the India Post Payments Bank (IPBB) app from your app store and install it on your phone.
Transfer Money to Your IPBB Account: Move money from your regular bank account into your IPBB account.
Log In to IPBB: Open the IPBB app and log into your account.
Select SSY: In the app, look for "Sukanya Samriddhi Yojana" under "DOP Products" and select it.
Enter Your Details: Enter your SSY account number and customer ID (from the post office).
Choose Payment Amount: Decide how much money you want to deposit and for how long you want to pay in installments.
Confirmation: Once the payment setup is complete, the app will confirm the setup with you.
Notifications: Every time money is transferred into your SSY account, you will receive a notification from the app.

What Information is Recorded in the Passbook?

When your SSY account is opened, you will receive a passbook. The passbook will include the following details:

Account Opening Date: The date when the SSY account was opened.
Minimum Deposit Amount: The smallest amount you need to deposit into the account.
Interest Rate: The annual rate of interest on the SSY account.
Account Holder’s Name: The name of the person whose account it is.
Date of Birth: The date of birth of the account holder.
Guardian’s Name: The name of the guardian (if the account holder is a minor).
Balance: The total amount of money currently in the account.
Account Number: The unique number assigned to your account.
IFSC Code: The code for the post office branch where the account is held.

How to Transfer Sukanya Samriddhi Account from Post Office to Bank?

To transfer an SSY account from the post office to a bank, follow these steps:

Visit the Post Office: Go to the post office where the SSY account is currently held.
Submit the Transfer Form: Inform the post office that you want to transfer the account, and submit the completed transfer form.
Submit Required Documents: Along with the form, provide the passbook and KYC documents.
Post Office Action: The post office will close the account based on your request.
Visit the Bank: Go to the bank where you want to transfer the SSY account.
Submit Documents at the Bank: Provide the required documents (including KYC).
Receive New Passbook: After completing the transfer, you will get a new passbook from the bank.

Note:

The girl child does not need to visit the post office for the transfer.
The guardian can complete the entire transfer process.
There’s no charge for transferring an SSY account to another post office or bank.
If the address of the girl or guardian changes, you can transfer the account for free. A fee of ₹100 is charged for other types of transfers.