Sukanya Samriddhi Yojana

What is the Sukanya Samriddhi Yojana?

The Sukanya Samriddhi Yojana (SSY) is a small savings scheme backed by the Government of India exclusively for the girl child. As per this scheme, a parent or legal guardian can open an account in the name of a girl child until she attains the age of ten years. The scheme is aimed at encouraging the parents or guardians to build a fund for the future education and marriage expenses of their female child. It is part of the “Beti Bachao – Beti Padhao” initiative of the Government of India, also known as BBB.

It is commendable that the government is taking steps to change the mindset of people towards the girl child. The SSY account can be opened in post offices and some specifically designated banks. An SSY account also offers income tax benefits by way of deductions under Section 80C for up to Rs 1.5 lakh along with a higher interest rate compared to other small savings schemes.

 

   Who can open an Sukanya Samriddhi Yojana account?

An SSY account can be opened by the natural or legal guardian in the name of a girl child from the birth of the girl child till she attains the age of 10 years. The account can be opened by a depositor only in the name of the girl child. A natural or legal guardian of a girl child is allowed to open two accounts for up to two girls. One can open a third account in the name of a girl child in a scenario of birth of twin girls, as a second birth, or if the first birth itself results into three girl children.

Key features of an Sukanya Samriddhi Yojana account:

• ssy can only be opened  by the parent of legal guardian of the girl child. It also important to note that account can also be opened for maximum of two girl child .There are some cases such in case of twins or triples where exmpation are provide if the a/c holder can present a medical certificate.
• this scheme only for female children who are resident in india .
• ssy account can opened in the name of girl child  not in name of legal guardian .
• Penalty of 50 Rs  if no deposit minimum  amount.
• The interest rate offered on an SSY account is 8.1 per cent on a yearly basis.
• First Minimum deposit in an SSY account is Rs 1,000 cash .
• Minimum deposit in an SSY account is Rs 250 .
• The maximum amount that can be deposited in a year is Rs. 1.5 lakh per SSY account.
• There is no limit to the number of deposits either in a month or in a financial year.
• An annual deposit of up to Rs. 1.5 lakh qualifies for tax benefits under Section 80C.
• One can continue to deposit in the SSY account till the completion of 14 years starting from the date of opening of the account.
• The account matures after the completion of the tenure which is 21 years. The balance in the SSY, including the interest, is paid to the girl child on submitting an application and proof of identity, residence and citizenship documents.

How to open a Sukanya Samriddhi Yojana account:

 Individuals who do not have an account  can open an SSY account by submitting the following documents:

Documents required to open an SSY account

(i) Birth certificate of the girl child

(ii) Photo ID of parents or legal guardian

(iii)Address proof of parents or legal guardian

(iv) Photograph of the child and parent

Step by Step Process

(i) Fill up the form

(ii) Submit the documents along with photos

(iii) Deposit cash (Minimum of Rs 1,000)

(iv) After opening the account, one can make deposits by cash, cheque or demand draft.

Maximum number of accounts	Up to two girl children or three in case of twin girls
The minimum and the maximum amount of deposit	Min amount is Rs 1,000 for initial deposit with an annual ceiling of Rs 1,50,000 in a financial year
Tenure of the deposit	21 years from the date of opening of the account
Interest Rate	8.6%
Tax rebate	Under 80C of the IT Act, 1961

Sukanya Samriddhi Account Closure on Maturity:

The account closure on maturity is guided by certain rules.

• The account matures on completion of 21 years from the date of creation of the account. The complete maturity amount along with the interest accrued can be withdrawn on maturity.

• If the girl, for whom the account was opened, gets married before the completion of the maturity period, she can withdraw the balance amount, provided she is 18 years old at the time of such withdrawal. The girl has to produce an affidavit that states that she is 18 years of age at the time of withdrawal.

• If the girl attains the age of 18 and gets married before the completion of 14 years of the term, the account cannot be operated. Further deposits to the account cannot be made even if the mandated deposited were not made earlier.

• The girl child is the only authorized person who can withdraw the maturity amount. She is required to submit the passbook and the withdrawal slip to make the withdrawal.

• If the girl gets married after attaining majority and withdraws 50% of the amount for the purpose of marriage, she may choose not to close the account. Though further deposits cannot be made, the balance amount will earn interests until the completion of the 21-year term.

This chart is very useful:

Instalment Amount (Monthly)	Investment Amount (14 Years)	Maturity Amount (21 Years)
Rs.1,000	Rs.1,68,000	Rs.5,42,122
Rs.2,000	Rs.3,36,000	Rs.10,84,243
Rs.3,000	Rs.5,04,000	Rs.16,26,365
Rs.4,000	Rs.6,72,000	Rs.21,68,486
Rs.5,000	Rs.8,40,000	Rs.27,10,608
Rs.6,000	Rs.10,08,000	Rs.32,52,730
Rs.7,000	Rs.11,76,000	Rs.37,94,851
Rs.8,000	Rs.13,44,000	Rs.43,36,973
Rs.9,000	Rs.15,12,000	Rs.48,79,095
Rs.10,000	Rs.16,80,000	Rs.54,21,216
Rs.12,500	Rs.21,00,000	Rs.67,76,520