Sukanya Samriddhi Yojana or SSY is a government-backed savings scheme launched in 2015 as part of the “Beti Bachao, Beti Padhao Yojana” for the benefit of the girl child.
Sukanya Samriddhi Account can be open by the parents of a girl child below the age of 10. Only one account in the name of one girl child and a maximum of two accounts in the name of two different girl children can be open. Sukanya Samriddhi Account has a tenure of 21 years or until the girl child marries after the age of 18.
From the date of opening of the account, the deposit in Sukanya Samriddhi Yojana can be made till the completion of a period of 15 years.
From July 2020, Sukanya Samriddhi Yojana scheme offers an interest rate of 7.6% compounded annually.
Detailed Information about Sukanya Samriddhi Yojana:
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What is Sukanya Samriddhi Yojana Account?
Sukanya Samriddhi Yojana is a small savings scheme launched in 2015 by the Government of India. It was launched as part of the “Beti Bachao, Beti Padhao Yojana” for the benefit of the girl child.
Sukanya Samriddhi Account can be open by the parents of a girl child below the age of 10. Only one account in the name of one girl child and a maximum of two accounts in the name of two different girl children can be open. Sukanya Samriddhi Account has a tenure of 21 years or until the girl child marries after the age of 18.
From the date of opening of the account, the deposit in Sukanya Samriddhi Yojana can be made till the completion of a period of 15 years.
Sukanya Samriddhi Yojana’s interest rates are generally higher than the rates on other government savings schemes.
Features of Sukanya Samriddhi Yojana:
- The account can be opened in the name of a girl child till she attains the age of 10 years.
- Only one account can be opened in the name of a girl child and a maximum of two accounts in the name of two different girl children can be open.
- The account can be opened in Post office and branches of authorised banks.
- Birth certificate of girl child in whose name the account is opened must be submitted.
- An account can be opened with a minimum of Rs. 1000/- and thereafter any amount in multiples of Rs. 100/- can be deposited. A minimum of Rs. 1000/- must be deposited in a Financial year.
- Maximum Rs. 1,50,000/- can be deposited in a financial year.
- Interest rates may be notified by the government from time to time will be calculated on a yearly compounded basis and credited to the account.
- One withdrawal shall be allowed on attaining the age of 18 years of the account holder to meet education expenses up to 50 % of the balance at the credit of the preceding financial year.
- The account can be transferred anywhere in India from one post office/bank to another.
- The account shall mature on completion of 21 years from the date of opening of the account or on the marriage of Account holder whichever is earlier.
- From the date of opening of the account, the deposit in Sukanya Samriddhi Yojana can be made till the completion of a period of 15 years.
Sukanya Samriddhi Yojana Interest Rate:
Sukanya Samriddhi Yojana’s interest rate for Quarter July-September 2020 is 7.6%. The interest rate on Sukanya Samriddhi Yojana has compounded annually. The interest rate is fixed by the government and revised quarterly. The following are the historic interest rates of this government scheme for the girl child:
| Time Period | Interest Rate (%) |
| July to September 2020 | 7.6 |
| April to June 2020 | 7.6 |
| January to March 2020 | 8.4 |
| July to Sep 2019 | 8.4 |
| Apr to June 2019 | 8.5 |
| Jan to March 2019 | 8.5 |
| Oct to Dec 2018 | 8.5 |
| July to Sep 2018 | 8.1 |
| Apr to June 2018 | 8.1 |
| Jan to March 2018 | 8.1 |
| Oct to Dec 2017 | 8.3 |
| July to Sep 2017 | 8.3 |
| Apr to June 2017 | 8.4 |
Note about Interest on Sukanya Samriddhi Yojana deposit:
- Interest at the rate, to be notified by the Government, compounded yearly shall be credited to the account till the account completes fourteen years.
- In case of account holder opting for monthly interest, the same shall be calculated on the balance in the account on completed thousands, in the balance which shall be paid to the account holder and the remaining amount in fraction of thousand will continue to earn interest at the prevailing rate.
You may check the current Rate of Interest of Sukanya Samriddhi Yojana here.
Benefits of Investing in Sukanya Samriddhi Yojana:
- Provides tax deduction benefits under Section 80C up to Rs. 1.5 lakh annually
- Flexible investment option with a minimum deposit of Rs. 1000 and a maximum of Rs. 1.5 lakh in a year
- Guaranteed returns instrument backed by the Government of India (sovereign guarantee)
- A higher fixed rate of return (currently 7.6% per annum for Q2 FY 2020-21) as compared to other government-backed tax saving schemes such as PPF.
- Long term investment hence provides the benefit of compounding
- Can be freely transferred from one part of the country to another (either in banks or post offices) in case of transfer of parent/ guardian operating the Sukanya Samriddhi Account.
- Sukanya Samriddhi Account can be opened for more than two girls in some special cases which are:
- If a girl child is born after the birth of twin or triplet girls, third SSY account cannot be opened
- If a girl child is born before the birth of twin or triplet girls, or triplets are born at first then a third account can be opened
Tax Benefits of Sukanya Samriddhi Yojana (SSY):
Sukanya Samriddhi Yojana investments are designated as an EEE (Exempt, Exempt, Exempt) investment. It means the principal amount deposited, interest earned during the entire tenure, and maturity benefits are tax-exempt.
Under the existing taxation rules of Sukanya Samriddhi Account, the tax deduction benefit on the principal amount invested is up to Rs 1.5 lakh per annum under Section 80C of the Income Tax Act, 1961.
Opening of Sukanya Samriddhi Account:
The account may 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 ten years. A depositor may open and operate only one account in the name of a girl child under these rules.
Natural or legal guardian of a girl child shall be allowed to open the account for two girl children only. Sukanya Samriddhi Account can be opened for more than two girls in some special cases which are:
- If a girl child is born after the birth of twin or triplet girls, the third SSY account cannot be opened.
- If a girl child is born before the birth of twin or triplet girls, or triplets are born at first then a third account can be opened.
Eligibility for Sukanya Samriddhi Yojana:
The following are the key eligibility criteria for opening an SSY Account:
- Sukanya Samriddhi Account can be opened only in the name of the girl child by her parents or legal guardians.
- The girl child has to be below the age of 10 at the time of account opening.
- Multiple Sukanya Samridhhi accounts cannot be opened for a single girl child.
- Only two SSY accounts are allowed for a family i.e. one for each girl child.
Where to open Sukanya Samriddhi Yojana Account?
The Reserve Bank of India has approved the following public sector banks and private sectors bank as the providers of Sukanya Samridhhi accounts:
- Axis Bank
- State Bank of India (SBI)
- Central Bank of India (CBI)
- Bank of Maharashtra (BOM)
- Bank of India (BOI)
- Bank of Baroda (BOB)
- Punjab National Bank (PNB)
- Union Bank of India
- Vijaya Bank
- Indian Overseas Bank (IOB)
- Indian Bank
- IDBI Bank
- ICICI Bank
- UCO Bank
- Punjab & Sind Bank (PSB)
- Dena Bank
- Canara Bank
Apart from the above-mentioned banks, application forms for this scheme can be availed from post offices. Also, Applicants who are interested must download their respected forms and submit all the required documents to get enrolled for the scheme.
Document required for Sukanya Samriddhi Account:
Documents required to open a Sukanya Samridhhi account in public sector banks or private sectors bank and Post Offices:
- Birth certificate of the girl child
- Photo ID of applicant parent or legal guardian
- Address proof of applicant parent or legal guardian
- Other KYC proofs such as PAN, Voter ID.
How to download and fill the SSY Application Form online?
Sukanya Samriddhi Yojana Account application form can be downloaded from various sources such as:
- The Reserve Bank of India Website
- The India Post Website
- Individual websites of public sector banks (SBI, PNB, BoB, etc.)
- The websites of participating private sector banks (e.g. ICICI Bank, Axis Bank, and HDFC Bank)
While there are multiple sources for downloading the SSY application form, the fields in the form will be the same regardless of source.
How to fill Sukanya Samriddhi Yojana Application Form:
- Download the application form from either RBI website, Indian Post website, participating public sector and private bank’s official website
- Fill up the form with key details of the girl child and a parent or legal guardian. Following are the key mandatory fields to be filled in Sukanya Samriddhi Yojana, scheme form
- Primary Account Holder- Name of Girl Child
- Joint Holder- Name of A parent or legal guardian
- Initial deposit amount
- Cheque/DD Number and Date for the initial deposit
- Date of Birth of girl child along with Birth Certificate details
- Identity of Parent or legal guardian such as Driving License, Aadhaar, etc.
- Present and Permanent Address (as per ID document of the parent or legal guardian)
- Details of other KYC proofs such as PAN, Voter ID card, etc
Passbook for Sukanya Samriddhi Yojana Account:
On opening an account, the depositor shall be given a passbook bearing the date of birth of the girl child, date of opening of an account, account number, name and address of the account holder, and the amount deposited.
The passbook shall be presented to the post office or bank, as the case may be, at the time of depositing money in the account and receiving payment of interest and also at the time of final closure of the account on maturity.
How to Invest in the Sukanya Samriddhi Yojana Scheme?
You can invest in this scheme through your nearby post office or designated branches of participating public and private banks. You will need to submit KYC documents like Passport, Aadhaar Card, etc. along with the required form and initial deposit by cheque/draft.
Minimum and Maximum investment amount in SSY Account:
The minimum annual contribution to the Sukanya Samriddhi Account is Rs.1000 and the maximum of Rs.1.50 lakh in a financial year. You have to invest at least the minimum amount every year for up to 15 years from the date of account opening. Thereafter the account will continue to earn interest till maturity.
Tenure for investment in SSY Account:
Sukanya Samriddhi Yojana has a tenure equal to the time the girl child is 21 years of age or upon her marriage attaining the age of majority (18 years). However, contributions only need to be made for 15 years. Thereafter the account continues to earn interest until maturity even if no deposits are made into it.
How to Check Your Sukanya Samriddhi Yojana Account Balance?
If your SSY account is maintained with a bank branch, the account balance can be checked easily through internet banking or mobile banking. You do however need to ensure that this account is linked to your existing net banking account for easy access to account records.
This option of online balance check for SSY accounts held with banks is in addition to the passbook update option by physically visiting the bank branch.
Sukanya Samriddhi Yojana Calculator is a financial tool that helps to evaluate the maturity amount of Sukanya Samriddhi Yojana.
If you have opened your SSY account at an India Post Office, there is currently no way to check the balance in the account online. You will have to visit the post office branch to get your passbook updated in order to perform a balance check.
Modes of deposits into SSY Account:
The deposit in the account opened under these rules may be made:
- in cash
- by cheque or demand draft drawn in favor of the postmaster of the concerned post office or the Manager of the concerned bank where the account stands and an endorsement on the back of such instrument shall be made and signed by the depositor indicating the name of the account holder and account number in which the deposit is to be credited.
Where a deposit is made by cheque or demand draft, the date of encashment of the cheque or demand draft shall be the date of credit to the account.
Operation of Sukanya Samriddhi Account:
The account shall be opened and operated by the natural or legal guardian of a girl child till the girl child in whose name the account has been opened, attains the age of ten years.
On attaining the age of ten years, the account holder that is the girl child may herself operate the account, however, deposit in the account may be made by the guardian or any other person or authority.
Transfer of Sukanya Samriddhi Yojana Account:
One of the key benefits of the Sukanya Samriddhi Yojana Account is the fact that it is easily transferable from one part of India to another. Under existing rules, you can transfer this tax-saving deposit account for benefit of girl child from one India Post Office to another or from one designated bank branch to another with ease.
To initiate the transfer of your SSY account from a post office, you will have to fill out and submit the transfer request form with the Post Master of the India Post Office where your account is currently located. Similar transfer forms are available online as well as offline in case you want to transfer the deposit from one designated bank branch to another.
Closure on the maturity of Sukanya Samriddhi Yojana Account:
The Sukanya Samriddhi Yojana account shall mature on completion of 21 years from the date of opening of the account, provided that where the marriage of the account holder takes place before completion of such period of twentyone years, the operation of the account shall not be permitted beyond the date of her marriage.
On maturity, the balance including interest outstanding in the account shall be payable to the account holder on production of withdrawal slip along with the passbook.
Premature closure of SSY account:
Premature closure of Sukanya Samriddhi Yojana can only be done by a girl child on attaining the age of 18 years for the purpose of marriage expenses. However, there are some special cases under which the account can be closed and the respective amount can be withdrawn:
The untimely death of the account holder:
In the event of the death of the Sukanya Samriddhi account holder, the account shall be closed immediately on production of death certificate issued by the competent authority, and the balance at the credit of the account shall be paid along with interest till the month preceding the month of premature closure of the account , to the guardian of the account holder.
Inability to continue the account:
Where the Central Government is satisfied that operation or continuation of the Sukanya Samriddhi Yojana account is causing undue hardship to the account holder, it may, by order, for reasons to be recorded in writing, allow pre-mature closure of the account only in cases of extreme compassionate grounds such as medical support in life-threatening diseases, death, etc.
Withdrawal from Sukanya Samriddhi Yojana Account:
To meet the financial requirements of the SSY account holder for the purpose of higher education and marriage, withdrawal up to fifty percent of the balance at the credit, at the end of the preceding financial year shall be allowed.
The withdrawal shall be allowed only when the account holder girl child attains the age of eighteen years.
FAQs about Sukanya Samriddhi Yojana:
Q: Can I take a loan against the balance in the Sukanya Samriddhi Yojana Account?
Ans: No. The facility of loan against the Sukanya Samriddhi account balance is not currently available.
Q: Is premature closure of the Sukanya Samriddhi Yojana Account allowed?
Ans: Yes. Premature closure of the Sukanya account is allowed in certain cases. This may include compassionate grounds due to terminal illness, the unexpected demise of the primary account holder, etc. However, the decision to allow such closure is on a case by case basis.
Q: Can I continue investing in SSY if my daughter and I move to another country?
Ans: The SSY account will have to be closed if the girl child becomes an NRI or loses her Indian citizenship.
Q: What is the penalty if I miss my SSY account minimum annual payment?
Ans: There will be a penalty of Rs.50 if a minimum amount of Rs. 1000 is not deposited in the account during a financial year.
Q: Is there a tax on Sukanya Samriddhi Yojana account interest?
Ans: No. Sukanya Samriddhi Yojana investments are designated as an EEE (Exempt, Exempt, Exempt) investment.
