Sukanya Samriddhi Yojana: A Savings Scheme for Your Daughter’s Future

Sukanya Samriddhi Yojana (SSY) is a part of Beti Bachao Beti Padhao campaign launched by the honourable Prime Minister Narendra Modi. The welfare scheme has been devised to secure the future of your girl child. You can open an account for your girl child in any banks and make investments up to 21 years from the date of account opening. 

What is Sukanya Samriddhi Yojana?

Under the SSY scheme, you can deposit an amount regularly and build a corpus that will help you to bear all expenses of your daughter’s higher education and marriage. 

Sukanya Samriddhi Yojana Features

Sukanya Samriddhi Yojana comes with the following features:

1. The account of the girl will be looked after by her guardian till the time she attains the age of 10 years. After being 18 years old, the girl can handle her account.
2. The minimum deposit limit is Rs250, and maximum deposit limit is Rs.1.5 lakh. One can make further deposits only in the multiples of 50.
3. Individuals will have to make deposits for a period of 15 years. The maturity period is 21 years.
4. One can choose to make deposits via online transfer, cheque, demand draft or cash.
5. Sukanya Samriddhi Yojana account can be transferred from post office to banks and vice versa. However, one needs to furnish a change of residence proof. 

Sukanya Samriddhi Yojana Benefits

You can avail these benefits by investing in the Sukanya Samriddhi Yojana:

• Higher interest: Under Sukanya Samriddhi Yojana, applicants can benefit from a higher interest rate, unlike other savings plans. Every year, the government revises the applicable rate of interest; hence, interest on your investment gets compounded yearly. This helps to increase the return on your investment by multiple times. 
• Sukanya Samriddhi Yojana tax benefits: Under Section 80C of the Income-tax Act, applicants can claim tax deductions on the deposit amount. Moreover, interest amount that the policyholder receives and the amount obtained on maturity are exempted from tax.
• Maturity benefits: Policyholder will receive the account balance, including the interest accumulated after maturity period is over. Your girl child will be receiving this lump sum amount upon scheme maturity. 
• Easy transfer: One can shift Sukanya Samriddhi account from one state to another during transfer of the individual handling the account on behalf of the girl child. You can also swiftly transfer an SSY account from a post office to bank and vice versa on proper furnishing of change of residence proof.   
• Flexible deposit limit: One notable Sukanya Samriddhi Yojana benefit is the flexible deposit limit. The girls’ parents or legal guardian can deposit any amount ranging between the minimum and maximum limit as per their preference.

SSY Interest Rate

Currently, SSY interest rate stands at 7.6%. It was lowered from 8.4% to 7.6%. The rate of interest is revised quarterly but is compounded yearly.

Here’s the changing interest rate under SSY:

Financial year	Interest rate
April 2020 onwards	7.6% p.a.
January 1 2019 –March 31 2019	8.5% p.a.
October 1 2018 – December 31 2018	8.5% p.a.
July 1 2018 –  September 30 2018	8.1% p.a.
April 1 2018 – June 30 2018	8.1% p.a.
January 1 2018 –  March 31 2018	8.1% p.a.
July 1 2017 – December 31 2017	8.3% p.a.
October 1 2016 – December 31 2016	8.5% p.a.
July 1 2016 – September 30 2016	8.6% p.a.
April 1 2016 – June 30 2016	8.6% p.a.
April 1 2015 – March 31 2016	9.2% p.a.
December 3 2014 – March 31 2015	9.1% p.a.

To compute the interest component, you can refer to this formula- 

I = P(1+R/100) ^N

Where I is interest rate

P denotes principal deposited

R suggests return rate

N means number of years

What is the Difference between PPF Vs Sukanya Samriddhi Yojana?

PPF (Public Provident Fund) is a retirement savings scheme, whereas SSY (Sukanya Samriddhi Yojana) is a savings scheme meant for securing a girl child’s future.

Public Provident Fund (PPF)	Sukanya Samriddhi Yojana ( SSY)
Minimum and maximum deposit limits under Public Provident fund are Rs.500 and Rs.1.5 lakh, respectively.	Minimum and maximum deposits for Sukanya Samriddhi Yojana are Rs.250 and Rs.1.5 lakh, respectively.
Adult citizens can open this account.	This scheme is only for a girl child who is below 10 years old. Legal guardians or parents of girl children can open this account.
Maturity period for Public Provident Fund is 15 years from the end of the financial period in which one opens the account.	Maturity period for Sukanya Samriddhi Yojana is 21 years from date of account opening.
There is a nomination facility with this account.	There is no such nomination facility under the SSY scheme.
Interest rate is 7.10% per annum from 2021 to 2022.	For FY 2021 to 2022, the interest rate is set at 7.6% per annum.
A policyholder can opt for premature withdrawal after six financial years.	Under SSY, an account holder can go for premature withdrawal when the girl child is 18 years old.

So, both these schemes are very different in terms of purpose and significance. 

Sukanya Samriddhi Scheme Calculator

Under Sukanya Samriddhi Yojana, you are required to make a deposit in your SSY account regularly so that you can get the maturity amount. 

Sukanya Samriddhi Calculator enables you to compute the estimated amount you can receive under SSY investment plan after the scheme matures. By providing the investment amount, girl child’s age and starting year of the investment, you will be able to see the maturity year and total amount that you will get upon maturation. 

This calculator will evaluate returns you will receive on maturity by factoring in the deposit, prevailing interest rate and maturity period. 

Sukanya Samriddhi Yojana Eligibility

Applicants must adhere to the following eligibility criteria to be able to open a Sukanya Samriddhi Yojana account:

1. The policyholder must be from India.
2. The one opening the account should be either the legal guardian or biological parents of the girl. 
3. One girl child cannot have multiple accounts under her name. 
4. Your girl child should be below the age of 10 years when you open an account under SSY. 

Documents Required for Opening an SSY Account

Besides meeting eligibility criteria, applicants must keep the following documents in order:

• SSY account opening form 
• Birth certificate of  the child for whom the account is being opened
• ID proof of depositor
• Address proof of the depositor

It is essential to note that applicants may have to submit additional documents as per the bank’s requirements.

How to Open Sukanya Samriddhi Scheme Account?

You can conveniently open an SSY account in a post office or a bank by following the mentioned steps:

Step 1: Go to your nearest post office or bank and fill out the account opening form. This form is known as Form SSA-1. You can also download this form online as well. 

Step 2: Provide your personal details by attaching ID proof and address proof.

Step 3: Now head to deposit the sum. The limit must fall under minimum and maximum deposit limits.

Step 4: Once you submit the application form and make the deposit, the bank will make necessary verifications. 

Once processing is done, your SSY account will be ready for transactions. You will also receive a passbook. One can apply for the Sukanya Samriddhi Yojana online.

How to Fill SSY Application Form for Post Office?

Applicants need to provide vital information regarding the girl child in Sukanya Samriddhi Yojana application form. Moreover, information regarding the depositor should also be mentioned while applying to open an SSY account. Here’s how one can fill up the SSY application form in post offices:

Step 1: Go to the nearest post office and get the SSY application form. Mention your post office savings number if you have one. 

Step 2: Provide post office details under ‘To the postmaster’. 

Step 3: Paste the applicant’s photo and provide the name and check on ‘Sukanya Samriddhi Yojana’.

Step 4: Enter all details under ‘Account Holder Type’ and ‘Account type’. Provide details about Aadhaar, address, PAN and then make the deposit. 

Step 5: Now, sign on page 1. In case you wish to provide instructions regarding amount deposition, sign on Section (5) of page 2. 

Step 6: Provide your sign and date.

How to Transfer SSY Account from Post Office to Bank?

You can conveniently transfer your Sukanya Samriddhi account to a bank from a post office by following the steps mentioned below:

Step 1: Firstly, go to the post office where the SSY account is opened and notify the PO executive regarding transferring of the account.

Step 2: Now, fill in the entries of the account transfer form and submit necessary documents.

Step 3: Next, head to the bank where you want to shift your SSY account and submit the self-attested KYC papers.

On submitting necessary documents, you can successfully transfer your account and receive a new passbook.

Moreover, under set norms and rules, you can conveniently transfer the SSY account from one state to another state in India, from one Indian post office to another, and from one authorised bank to another. 

SSY Withdrawal Rules

An account holder must be acquainted with the following Sukanya Samriddhi Yojana withdrawal rules:

• The girl child can withdraw the entire amount after maturation of the account, which is inclusive of the interest earned. However, you can proceed with withdrawal only after submitting the following documents:

1. ID proof
2. Residential proof
3. Withdrawal Application form 
4. Documents stating citizenship

• One can withdraw an amount for backing higher education purpose when the girl reaches 18 years of age or has completed her 10^th standard. However, you need to provide confirmed admission offers and a photocopy of the fee slip. Also, the amount should be utilised for bearing fees and associated charges asked during admission. 
• An account holder can withdraw up to a maximum of 50% of the account balance available in the previous fiscal year for educational purposes.

Rules for Premature Withdrawal from SSY Account

An account holder might feel the need to withdraw before maturation of deposited sum. Here are the rules that will help account holders in premature withdrawal from SSY account:

• The girl can go for premature withdrawal once she has attained the age of 18 years and is about to marry. However, to enjoy the advantage of the scheme, she needs to submit the application for it one month prior or three months after the marriage. Furthermore, she needs to submit proof of marriage.
• The guardian of the girl child can withdraw the balance in case she passes away. However, the guardian must show the death certificate before doing so.
• SSY account will be deemed close if an account holder changes residential status and becomes a non-resident. They should inform the bank or post office within one month. 

Also Read: PPF Withdrawal Rules: How To Get The PPF Amount Before And On Maturity

Banks that Offer SSY Account Facility

Here is the list of banks extending SSY scheme:

• State Bank of India
• ICICI Bank
• UCO Bank
• Bank of India
• Vijaya Bank
• Oriental Bank of Commerce
• Indian Bank
• Union Bank of India
• Punjab National Bank
• Corporation Bank
• Canara Bank
• Axis Bank
• Indian Overseas Bank
• Bank of Baroda, etc.

Also Read: How To Safeguard Your Family With PMSBY (Pradhan Mantri Suraksha Bima Yojana)

Final Words

Sukanya Samriddhi Yojana is a flagship scheme backed by the government that extends welfare benefits for the girl children, helping them grow and prosper in life. If you want to secure your girl child’s future you can opt for investing in this scheme. 

FAQs on Sukanya Samriddhi Yojana

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