Honourable Prime Minister Narendra Modi launched SSY (full form – 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. Currently, SSY interest rate stands at 8% for the quarter April to June.
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 8% 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 Interest Rate||8%|
|Investment Amount||Minimum investment amount = Rs.250|
Maximum 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|
|Tax Benefits||Up to Rs.1.5 lakh under Section 80C of ITA|
Sukanya Samriddhi Yojana comes with the following features:
You can avail these benefits by investing in the Sukanya Samriddhi Yojana:
You can earn higher interest rates compared to other savings schemes under SSY. The current interest rate stands at 8%. Every quarter, 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.
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.
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.
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.
One notable Sukanya Samriddhi Yojana benefit is the flexible deposit limit. The girls’ parents or legal guardians can deposit any amount ranging between the minimum and maximum limit as per their preference.
The current interest rate for SSY is 8%. 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 2023 onwards||8%|
|April 2020 to March 2023||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.|
You can open an SSY account in any bank/post office and then provide the necessary standing instructions online. Provided below are the steps:
You can follow these steps to download the form:
You can conveniently open an SSY account in a post office or a bank by following the mentioned steps:
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:
Besides meeting eligibility criteria, applicants must keep the following documents in order:
Applicants must adhere to the following eligibility criteria to be able to open a Sukanya Samriddhi Yojana account:
It is essential to note that applicants may have to submit additional documents as per the bank’s requirements.
An account holder must be acquainted with the following Sukanya Samriddhi Yojana withdrawal rules:
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:
Here is the list of banks extending SSY scheme:
Sukanya Samriddhi Yojana is a flagship scheme backed by the government that extends welfare benefits for the girl child, 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.
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.
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
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