Sukanya Samriddhi Yojana (SSY) is a monetary savings scheme provided to all households to help them endure the fundamental expenses of raising a woman child, especially her schooling. It is a deposit scheme for the woman child introduced under the government campaign “Beti Bachao Beti Padhao”. It needs a minimum deposit of Rs. 1,000 and a maximum of Rs.1.5 lakh during the on-going fiscal year. A household will open them in any local post office or approved the branch of banks. The accounts will continue to function for 21 years after the date of opening the account or until the date of marriage of the girl after she becomes 18. If a woman wants to go for higher studies, after she turns 18, she can withdraw 50% of the balance available in the account.
It currently provides an interest rate of 8.1% and tax benefits. The account can be opened at any Post office or authorized branches of commercial bank.
So here, we will try to know more about the Sukanya samridddhi Yojana account in details or get to know Whether this investment option good for child Girl?
Sukanya Samriddhi Yojana Details for Account Opening
- The account can be opened by the natural or legal guardian in the name of Girl child from her birth till she attains the age of 10.
- Only one account is allowed per child, parents can open a maximum of two accounts for each of their children.
- A minimum of
1000Rs (As recently amended it is 250Rs Now)must be deposited in the account initially. Thereafter, any amount in the multiple of 100 Rs can be deposited. However, maximum deposit limit is 1,50,000 Rs. If the minimum amount of 1000Rs 250 Rs is not deposited in any financial year then, a 50 Rs Penalties will be levied.
- It allows partial 50% withdrawal from the balance at the age of 18 for higher education purposes.
- The birth certificate of the girl in whose name account is opened should be submitted by the guardian at the time of account opening in the post office or the bank, along with the other documents relating to identity proof or address proof of the depositor.
Note :-The government has lowered the minimum annual deposit requirement for Sukanya Samriddhi Yojana accounts to Rs 250 from Rs 1,000 earlier.The government has amended the Sukanya Samriddhi Account Rules, 2016, stating that the minimum initial deposit to open the Sukanya Samriddhi account would also be Rs 250.
Deposit and maturity in Sukanya Samriddhi yojana account
You need to deposit a minimum of
1000 Rs 250 Rs and Maximum 1,50,000 Rs only for the first 14 years, afterward you are not required to deposit any amount. Your account will keep earning the applicable interest for the remaining 7 years or till it matured on your child Marriage.
For example, if a person has started investing in the SSY account when his daughter’s age was 7, then he has to contribute to the account till she attains 21 years of age (7 years + 14 years). The account gets matured when she reaches 28 years (7+ 21). However, the account will be closed earlier if she gets married before 28 years of age.
Sukanya Samriddhi Yojana interest rate 2018
Of time, the interest of SSY will always be greater than that of PPF. For both, the government fixes the interest rate on quarterly basis dependent on the G-sec yields. The interest rate and spread that SSY enjoys over the G-sec rate of similar maturity is 75 basis points in comparison to PPF’s 25. The scheme currently provides an interest rate of 8.1% and EEE tax benefit.
SSY carries the highest Tax-free return and includes the exempt-exempt-exempt (EEE) status. The yearly deposit (contributions) qualifies for Section 80C benefit and the maturity gains are non-taxable. SSY could be opened at a post office or a bank. An individual may also make deposits through digital methods, i.e., e-transfer into the concerned post office or bank if has access to the core banking system.
Sukanya Samriddhi Yojana chart (Interest Rate since inception)
|Financial Year||Date Range||Interest Rate||Minimum Investment (Rs)||Maximum Investment (Rs)|
|2014-15||1 April 2014 to 31 March 2015||9.1%||1,000||150,000|
|2015-16||1 April 2015 to 31 March 2016||9.2%||1,000||150,000|
|2016-17||1 April 2016 to 31 Dec 2017||8.6%||1,000||150,000|
|2016-17||1 Jan 2017 to 31 Mar 2017||8.5%||1,000||150,000|
|2017-18||1 Apr 2017 to 30 June 2017||8.4%||1,000||150,000|
|2017-18||1 July 2017 to 31 Dec 2017||8.3%||1,000||150,000|
|2018-19||1 Jan 2018 until now||8.1%||1,000||150,000|
Rules pertaining to closure of Sukanya samriddhi yojana account
Closure on maturity
Account matures after completion of tenure of 21 years and balance in SSA including interest is paid to Girl child on submitting an application and proof of identity, citizenship and residence records or documents.
Premature closure allowed only in these scenarios
- If parent or guardian intentionally arrange a marriage after the girl child attains the age of 18 years, then need to file an application before 1 months of marriage or after 3 months of marriage along with her age proof documents.
- Girl child pass away on production of death certificate and balance in the SSA will be paid to the guardian.
- If girl child becomes non-resident or non-citizen of India, then this status shall be communicated by the girl child or guardian within 1 months.
- After completion of 5 years, if Post office or bank satisfied that operation or continuation of SSA is causing an undue hardship to the girl child (such as death of guardian or medical emergency etc.) may arrange for early closure.
- For any other reasons, if SSA to be closed any time after the opening of SSA, then it will be allowed, but the Whole deposit could make interest rate applicable to post office savings bank
Withdrawal rules pertaining to Sukanya Samriddhi Yojana
- Withdrawal is granted for higher education purpose if woman child has attained 18 years or completed 10th standard for meeting actual fee or other charges required in the time of admission
- Documentary proof by way of a verified offer of entry in an educational institution or fee slip shall accompany the application for withdrawal.
- Withdrawal has a maximum cap of 50% of the balance in SSA in the end of previous financial year and can be made in either one lump sum or in 5 installments not exceeding one installment per year
Transfer of account under Sukanya Samriddhi Yojana account
The Account may be transferred anywhere in India and from or to post offices and from or to Banks and involving post office and Bank, without any cost on furnishing of proof of changing of residence of the Guardian or the Account holder and otherwise, on payment of a fees of one hundred rupees to the post office or the Bank to which the move has been made.
The process of transfer of the account shall be affected electronically if the post office or the Bank concerned, has access to the facility of CBS.
Sukanya Samriddhi Yojana Calculator for Current Financial Year
Suppose you wanted to contribute 10,000 Rs Yearly for the SSY deposit, then how much amount would be accumulated at the end of 21 years
So, for 10,000 Rs yearly Contribution, you would be able to accumulate Rs,4,54,775.65 /-
For, 1,40,000(10,000*14) = 4,54,775.65 Rs Maturity Value.
You can download the Sukanya Samriddhi Yojana Form from here Download