Sukanya Samriddhi Yojana | Account | Scheme | Beti Bachao Beti Padhao
The Sukanya Samriddhi Yojana is as girl child prosperity scheme under Beti Bachao Beti padhao program of Prime Minister Narendra Modi. SSY account is to ensure a bright future for girl children in India. This yojana is to facilitate them proper education and carefree marriage expenses. The scheme has well been accepted by the masses in wake of the financial security and independence it would provide to the girl child as well as their parents and guardians.
This Yojana offers a small deposit investment for the girl children as an initiative under ‘Beti Bachao Beti Padhao’ campaign. One of the key benefits of the scheme is that it is quite affordable and offers one of the highest rates of interest. Please see this page for current SSY interest rate and also SSY is under the Income tax Act 1961, section 80C.
Updated Sukanya Samriddhi Yojana Rules 2016
- You can now open SSY for your adopted girl child
- You can deposit Money Online.
- Girl Child can also deposit amount
- Interest Rate would be calculated on 10th Day of every month. Initially it was 5th day of the month
- You will now have to deposit Money for 15 years. Initially it was 14 years.
- Partial withdrawal for girl child education can be done when she has cleared 10th Class or turned 18 years.
- Account will not earn any interest after it has matured
- Now can now transfer you SSY accounts. If you would do from post office to post office it would be free. But transfer from Post office to banks or vice versa would cost you rs 100 and you can do this only once in a year.
- You can get the duplicate passbook at the cost of rs 50
- You can now withdraw 100% amount when after girl child turns 18. Initially it was not allowed.
- Till a girl attains an age of 10 years, this account can be opened under her name
- Only one account under this scheme is permissible for every girl child
- Walk into any post office or authorized banks to open the account
- To open an account under SSAY, Birth Certificate of the girl child would be required to submit
- The opening amount for the account is Rs 1,000. Thereafter a multiple of Rs 100 can be deposited to the account with a minimum of Rs 1,000 per year
- The maximum limit for deposits in the account is Rs 1,50,000 per year
You have to pay in this scheme for 14 years. You have to pay in this scheme for 15 Year. Suppose you have opened this account when the age of your girl child was X years then you have to pay in this scheme till your girl child age is X + 14 YearsX + 15 Year.
- The maturity duration of the account is 21 years from the date of opening the account.
- SSY Account is transferable to anywhere in India from a Post office or bank to others
The scheme comes from Ministry of Finance under its notification GSR 863(E). This notification was published on 02nd December 2014. The scheme will operate with the name Sukanya Samriddhi Account Rules, 2014.
Please Read more on Key Features
Who would be the Depositor?
Since this is an account dedicated to the girl child, a parent or guardian of the girl child could be depositor of the account.
Any legal guardian or parents of a girl child can open SSY Account under this scheme anytime at the time of birth of the child till she attains an age of ten years. As a matter of exception, any girl who attained an age of ten years within one year prior to announcement of this scheme would also be entitled to get this account opened under her name.
The process of opening a SSY is quite simple and not much documentation is required in normal cases. Here is a list of document a parent or guardian needs to take along when applying for an account under the scheme:
- Certificate of Birth of the Girl child
- Proof of Address of parents/guardians
- Proof of identity of the parents/guardian
So, in all, you need just three basic documents and Account would be opened for your girl child. Please read more for Documents Required
Where to open
Can Account holder choose not to close account after maturity
The normal tenure of the account is up to the age of 21 years of the girl. However, if she wishes to continue the account further,
the maturity amount would grow at the same interest rate as per the scheme’s current rates. The interest would be compounded on a monthly/yearly basis and would get credited to the account once the girl reaches an age of 14 years You will Now not get any interest after the maturity Period as per updated rules.
Who is authorized to operate Sukanya Samriddhi Account?
As mentioned earlier in the article, the account could be opened by the parents of legal guardian of the girl child. They would be operating the account until the girl child turns 10 years. After 10 years, a girl child may operate her own account, if she chooses to.
Pre-Mature Withdrawal and Account Transfer in Sukanya Samriddhi Yojana
SSY has been launched across India and hence the account is transferable to any part of the country in situation of the account holder or the depositor moving to other places.
The scheme clearly envisages that a pre-mature amount of up to 50% is allowed for withdrawal after the account holder turns 18 year for the requirement of either marriage or higher education.
In case of marriage of the account holder after 18 years, the operation of the account may not be possible and hence this scheme offers closure of the account after marriage of the account holder. In that case, an affidavit and relevant proof would be require stating that the girl is above 18 year of age and has been married after that. Read More for Withdrawal Rules
Updated :- Now this account be be closed after girl child turns 18.
Any amount that would be deposited in Sukanya Samriddhi Account would be exempted from tax under 80C of IT Act, 1961, till a maximum of Rs 1.5 lakh. The interest and maturity amount on this account is also exempted from income tax. Also the amount matured at the time to account closure would be completely tax free.
Please read more on SSY Tax Benefits
Advantages and Benefits
- High and best in market fixed interest rates
- Full tax benefits under 80C of Income Tax act
- Maturity amount to be given directly to the girl child
Interest would be paid even after maturity of the account, if it is not closed by the account holder or depositor
- No fixed number of deposits. The depositor can deposit a multiple of Rs 100 through out the year, with no limitation on number of deposits. This is indeed a big advantage of the scheme.
- Account can be transferred anywhere in India
- Girl child / Account holder may operate her account, if she wishes to. This would give a lot of financial independence to the girl child as well.
Please read more on SSA Benefits
Shortcomings or Drawbacks
- Lock in period is a little on higher side
- The account is limited for just two girl child of the parents
The scheme does not facilitate online transfer facility and that would be a discomfort for the IT savvy customers
- No surety account the Rate of Interest in future
Please read more on Drawbacks of SSA
To conclude, the intent of the scheme is quite noble and would certainly provide a lot of financial independence to the girl child as well as their parents and guardians. At the same time, considering the leverages and flexibilities it provides, we are sure that it would bring a lot of capital to the banks. The only thing we would not be sure of as of now is how this scheme would be taken by the forthcoming budgets and government at the center.
Sukanya Samriddhi Yojana in Tabular Format
|Basic Information on SSY|
|Target Audience||Girl Child Only|
|Citizenship of Target Audience||Indian|
|Age of Target Audience||10 years or less|
|Account Opening Charges||INR 1,000|
|Future Deposit Amounts||Multiples of INR 100|
|Maximum Deposit Allowed in a Year||INR 150,000|
|Deposit Failure Penalty||Account will become inactive||Account reactivation charge of INR 50 along with minimum deposit amount for the financial year.|
|Total Tenure of SSY Account||Until the account attains the age of 21 from the date on which the account was created.|
|Maximum Number of Years for Which Money Deposit is Allowed||15 years from the day when the account was opened.|
|Maximum Number of Accounts Allowed||1 account per girl child and no more than 2 accounts in a single family.||If the first birth gives two girl children and second birth gives 1 girl child, 3 accounts are allowed. Also if the first birth gives triplet (all three are girls), 3 accounts are allowed.|
|Money Deposit Mode||Internet banking online transfer, bank to bank transfer, DD, check deposit or cash deposit.|
|Account Opener||Parents or legal guardian of the girl child.|
|Document Requirements||Birth certificate of the girl child + address and identity proofs of parents or legal guardian|
|Account Operation Rights||Until the girl child attains the age of 10, parents or legal guardians will operate and thereafter, the girl gets the right to operate but parents or legal guardians can also continue to operate the account.|
|Offered Interest||Please see this table|
|Account Closure||If depositor dies or under special circumstances authorized by Central government. Or when Girl child Completes 18 years.|
|Tax Benefits||EEE under 80C||Investment, interest earnings and withdrawals are all exempted.|
|Premature Withdrawal||50% of account balance of previous fiscal year in year when girl becomes adult.||Purpose can be only educational and marriage expenses.|
|Upon Marriage||Account to be closed permanently|
|Upon Maturity||Account will not earn any interest.|