Sukanya Samriddhi Yojana: Bank Interest Rates and How to Open One?
Honourable Prime Minister Narendra Modi launched Sukanya Samriddhi Yojana as an important part of the ‘Beti Bachao Beti Padhao’ campaign in 2014. This welfare scheme aims to financially secure a girl child’s future. Read this blog to understand the benefits of Sukanya Samriddhi Yojana scheme, its eligibility and how to open an SSY account in detail
What is the Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana (SSY) is a Government-backed long-term savings or welfare scheme that was introduced under the ‘Beti Bachao – Beti Padhao’ campaign allowing parents to provide financial security to their daughters. Parents of daughters aged 10 or below can open an SSY account in any private or public sector bank and can stay invested in it for 21 years from its opening date and earn interest on their investments. The current interest rate of the SSY scheme stands at 7.60% and is compounded annually. You can also claim tax benefits up to Rs.1.5 lakh on your SSY investments under Section 80C of the Income Tax Act.
Let’s check out the important aspects of SSY.
SSY Scheme Details
| SSY Interest Rate | 7.60% |
| Investment Amount | Minimum investment amount = Rs.250Maximum investment amount = Rs.1.5 lakh |
| Maturity Period | 21 years from the account opening date or until the girl child marries after the age of 18 |
| Frequency of Investment | Every year till the completion of 15 years from the date of investment |
| Maturity Amount | Tax-free |
| Tax Benefits | Up to Rs.1.5 lakh under Section 80C of ITA |
Sukanya Samriddhi Yojana Features
Sukanya Samriddhi Yojana comes with the following features:
- SSY accounts can be opened for girls aged 10 or below.
- The minimum deposit limit is Rs.250, and maximum deposit limit is Rs.1.5 lakh. One can make further deposits only in the multiples of 50.
- Individuals will have to make deposits every year for a period of 15 years from the date of opening the account.
- The maturity period is 21 years from the date of opening the account or until the girl child marries after the age of 18.
- One can choose to make deposits via online transfer, cheque, demand draft or cash.
- 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.
- Minimum investment has to be made for 15 years. Thereafter, you can choose to stop making any deposits, however, an SSY account would continue to earn interest until maturity.
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Sukanya Samriddhi Yojana Benefits
You can avail these benefits by investing in the Sukanya Samriddhi Yojana:
1. Higher Interest
You can earn higher interest rates compared to other savings schemes under SSY. The current interest rate stands at 7.60%. Every year, the government revises the applicable rate of interest; hence, interest on your investment is compounded yearly. This helps to increase the return on your investment by multiple times.
2. Tax Benefits
You can claim tax benefits up to Rs.1.5 lakh under Section 80C of the Income Tax Act. Moreover, the interest amount that the policyholder receives and the amount obtained on maturity are exempted from tax.
3. Maturity Benefits
Policyholders will receive the account balance, including the interest accumulated after the maturity period is over. Your girl child will be receiving this lump sum amount upon scheme maturity.
4. 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.
5. 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.
Sukanya Samriddhi Yojana Interest Rates
The current interest rate for SSY is 7.6%. The Central Government revises the interest rates quarterly. But, interests get compounded annually.
The table below represents the SSY interest rates since its inception:
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. |
How to Open a Sukanya Samriddhi Scheme Account?
You can open an SSY account in any bank/post office and then provide the necessary standing instructions online. Provided below are the steps:
1. Download the Form Online
You can follow these steps to download the form:
- Step 1: Download the SSY form from the online portal of the Reserve Bank of India.
- Step 2: Fill up the form carefully, gather every important document and arrange for the deposit money.
- Step 3: Visit your nearest post office and deposit the required amount along with the form and all required documents to open an SSY account.
2. Bank/Post Office
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.
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.
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Documents Required for Opening an SSY ID 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
- ID proof of the daughter
- Address proof of the depositor
Sukanya Samriddhi Yojana Eligibility
Applicants must adhere to the following eligibility criteria to be able to open a Sukanya Samriddhi Yojana account:
- Should be a resident of India.
- The account must be opened by the girl’s biological parents or legal guardians.
- There cannot be multiple accounts for a single account holder.
- The beneficiary must be below 10 years when an SSY account is opened in her name.
It is essential to note that applicants may have to submit additional documents as per the bank’s requirements.
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:
- ID proof
- Residential proof
- Withdrawal Application form
- Documents stating citizenship
- One can withdraw an amount for higher education purposes when the girl reaches 18 years of age or has completed her 10th 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 accounts 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.
List of Banks where SSY Account can be Opened
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.
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.
Sukanya Samriddhi Yojana scheme aims to make the daughters of India financially independent. Some of the key highlights of the scheme are – high interest rates, flexibility, low investment amount and assured returns. Open an SSY account to give your daughter a brighter future.
FAQs
Ans: There are absolutely no differences in the provision whether you open the SSY account in a public or private bank. You will receive the same features and terms from both authorised entities as the Central Government backs this scheme.
Ans: A non-resident Indian cannot open an account under Sukanya Samriddhi Yojana. As per eligibility, the account holder must be Indian. If the account holder moves out of India, the SSY account will be closed.
Ans: After demise of the depositor, either the account holder will receive the money which was deposited so far. Otherwise, the sum continues to gain interest till it matures.
Ans: You will receive a passbook as you open an account under the Sukanya Samridhi Yojana. The passbook holds all transaction history, including deposits, interest and withdrawals. Keep track of your passbook to check your account balance.
Ans: The minimum investment amount under Sukanya Samriddhi Yojana is Rs.250 in a financial year.
Ans: The maximum investment amount under the Sukanya Samriddhi Yojana welfare scheme is Rs.1.5 lakh in a financial year.
Ans: You can open SSY accounts in designated branches of the public and private banks that are a part of this welfare scheme and nearby post offices.
Ans: Yes, you can easily transfer your child’s SSY account from one part of India to another. You can also transfer this account from the post office to bank branches, or from one bank branch to another.
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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
