Sukanya Samriddhi Yojana is a small saving scheme introduced by Government of India under Beti Bachao Beti Padao campaign to ensure the bright future of girls child in India. Money saved under this scheme is to provide for girls higher education and for the wedding expenses.
One of the most important feature of this scheme is that all the amount deposited under Sukanya Samriddhi Yojna can be withdrawn by the girl child only not even the parent can withdraw the amount on behalf of the girl. This scheme can play a great role toward the gender related issue as in India preference for education is given to male child and girl wedding expenses is seen as a great liability.
Quick Fact
- Objective: Welfare of girl child
- Who can open: A natural / guardian on behalf of girl child
- Amount Deposit: minimum Rs.1000/- and maximum Rs.1,50,000/- per year
- Number of account: upto 2 girl child or 3 in case of twin girl as second birth
- Tenure of Deposit : 21 years from the date of opening of the account
- Maximum period upto which deposits can be made: 14 years from the date of opening of the account.
- Interest of Deposit: Current rate 8.60%w.e.f 1st April, 2016
- Tax Rebate: As applicable under section 80C of the IT Act, 1961.
- Irregular Payment/ Revival of account: By payment of penalty of Rs.50 per year along with the minimum specified amount per year
- Mode of Deposit: Cash/Cheque/ Demand Draft/ Transfer/ online transfers through internet Banking.
- Withdrawal : 50% of the balance lying in the account as at the end of previous financial year for the purpose of higher education, marriage after attaining the age of 18 years.
- Flexibility in Deposits: Any Number of time amount can be deposits in Multiple of Rs. 100 subject to Maximum Limit of Rs. 1.50 Lakh per year.
- Grace Period : Till December this scheme allowed a grace period 1 year. Which means that girl child of 11 years of age was also included in the scheme. Since January 2016, the grace period no longer exists.
Special Features
- Bank account can be opened for girl child (maximum 2 or 3 account can be opened in case younger siblings are twin girls) upto 10 years of age.
- Deposit for only 14 years with maturity at 21 years.
- Facility of account closure on marriage after the age of 18 years.
- Deposit minimum Rs.1000/- and maximum Rs.150,000/- per year
- Highest interest rate amongst all other small saving schemes.
- Income tax benefit under section 80C.
How is the interest rate on deposits calculated?
The government fixes interest rates on quarterly basis based on the G-sec yields. The interest rate spread that the Sukanya Samriddhi Yojana enjoys over the G-sec rate of comparable maturity is 75 basis points.
The interest rate since its launch is as follows:
- From April 1, 2014: 9.1%
- From April 1, 2015: 9.2%
- From April 1, 2016 -June 30, 2016: 8.6%
- From July 1, 2016 -September 30, 2016: 8.6%
- From October 1, 2016-December 31, 2016: 8.5%
Interest at the rate, to be notified by the government, compounded yearly will be credited to the account till it completes 15 years.
Guide on how to open a Sukanya Samriddhi Yojana Account
A SSY Account can be opened at any commercial bank authorized by central bank of India or at any authorized post office branch. In General all the bank who has the facility to open public provident fund (PPF) account can also open the Sukanya Samriddhi Yojana Account.
All the Documents required to open the SSY Account:
- Sukanya Samriddhi Account Opening Form.
- Birth certificate of the girl child (account beneficiary).
- Identity proof of the depositor (parent or legal guardian), i.e., PAN card, ration card, driving licence, passport.
- Address proof of the depositor (parent or legal guardian), i.e., passport, ration card, electricity bill, telephone bill, driving licence.
Disclaimer: Only those rules which hugely impact the buying decision are mentioned here. For complete information, you need to contact the issuer while applying for the scheme. Also, rules are subject to change and accordingly impact the buying decision.
