Sukanya Samriddhi Yojana: Eligibility, Benefits & Interest Rates

Sukanya Samriddhi Yojana, or SSY, is a scheme announced under the “Beti Bachao, Beti Padhao” campaign of the Indian government. The main objective of this scheme is to help parents of a female child to build a fund for her higher education and marriage.

Under this scheme, the parents or legal guardians of the girl, aged 10 years or less, are eligible to open an SSY savings account. Note that the SSY scheme comes with a tenure of 21 years from the opening date of an SSY account or the marriage of the beneficiary girl, whichever is earlier. Once the beneficiary gets married, the account gets terminated.

Moreover, only a one-time partial withdrawal of up to 50% of the accumulated fund can be withdrawn once the girl reaches 18 years of age to fund her higher education. While the parents and authorised guardians of the beneficiary are responsible for operating the SSY account, the girl can take this responsibility after reaching the age of 18.

The minimum deposit amount into this scheme is ₹250, and the maximum is ₹1,50,000 per year. Also, this scheme comes under the EEE (Exempt, Exempt, Exempt) tax policy defined under Section 80C of the I.T. Act. It means the maturity amount, as well as the interest gained on the SSY account, is exempt from tax.

Besides SSY tax benefits, this scheme offers many other advantages, which we will discuss in the later sections.

Following are the eligibility criteria for Sukanya Samriddhi Yojana:

The beneficiary girl should be 10 years or older at the time of opening an SSY account.

Only parents or legal guardians or the girl can open the SSY account.

Only one account can be opened per beneficiary girl.

A maximum of two accounts are allowed per family for each girl child below 10 years of age.

There are some special cases under which more than two SSY accounts can be opened. You can open a third account if your first child is born before the birth of your twin or triplet girls. However, you can not open the third account if the girl child is born after twins or triplet girls.

Better Interest Rates: As compared to other savings schemes, Sukanya Samriddhi Yojana offers a higher interest rate of 8% per annum. It allows you to accumulate a significant fund for the education and marriage of your daughter.

SSY Tax Benefits: If you are looking for tax saving options, then investing in SSY is a great option as it falls under the Exempt-Exempt-Exempt scheme. It means you don’t have to pay taxes on your capital, interest, and maturity amount. You can enjoy tax exemptions up to ₹1,50,000 per F.Y. with this scheme.

Power of Compounding: The interest calculation on the SSY accounts is based on compound interest, which means you get the chance to earn interest on interest. The power of compounding helps in gaining impressive gains on your fund.

Guaranteed Returns: Since it is a government-backed scheme that comes with a lock-in period of 21 years, you can stay assured of the returns. This type of investment does not involve any risk or liability.

Flexible Investments: Earlier, the minimum investment amount for this scheme was ₹1,000 per year. However, it has been reduced to ₹250 per year to enable more and more individuals to invest in it.

Easy to Operate: Operating a Sukanya Samriddhi Yojana Account is very easy and simple. It can be transferred to another city or district in case the parent/guardian of the account holder gets transferred to some other location. Besides, the girl can handle their own accounts upon reaching 18 years of age.

As mentioned above, you must open a Sukanya Samriddhi Yojana account in order to leverage the benefits of this scheme. You can easily open this account in an eligible public or private bank or a nearby post office.

Below is the list of public and private banks that are currently offering SSY account opening facilities:

Axis Bank

SBI

Punjab National Bank

HDFC

IDBI

Indian Bank

ICICI Bank

UCO Bank

Indian Overseas Bank

Canara Bank

Bank of India

Central Bank of India

Bank of Baroda

Bank of Maharashtra

Punjab and Sind Bank

Indian Bank

The following are the main documents required for opening a Sukanya Samriddhi Yojana Account:

Duly Filled Sukanya Samriddhi Yojana Application Form

Aadhaar Card

Birth Certificate of the Girl Child

Passport-sized Photograph

Initial Deposit (via Demand Draft or Cheque)

Sukanya Samriddhi Yojana is one of the best government-backed schemes that not only ensures a bright future for your daughter (s) but also helps you optimise your tax savings by leveraging the SSY tax benefits.

So, if you are eligible, investing in this scheme can be very beneficial for you and your children. It will provide the much-needed financial support for their higher education and marriage.

While the education and marriage of your female children can be covered well with SSY, you still need to ensure their good overall health. This is exactly where a health insurance plan comes into the picture.

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What if the Beneficiary Girl Dies During the SSY tenure?

In case of the unfortunate demise of the registered girl, her parents or guardian can claim the accumulated amount as well as the interest gained on it. The account will be terminated, and the amount will be paid to the nominee upon the verification of the death of the account holder.

Where can I download the SSY application form?

You can download the Sukanya Samriddhi Yojana new account application form from any one of the following platforms:

Official RBI website.
Official Indian Post website.
Official website of eligible public sector banks.
Official website of eligible private banks.