Sukanya Samriddhi Yojana (SSY), Check Interest Rate 2023, Benefits & Eligibility

On 22 January 2015 as a part of the Beti Bachao Beti Padhao campaign, Prime Minister Narendra Modi launched a scheme in Panipat, Haryana, known as the Sukanya Samriddhi Yojana. This scheme aims to promote savings for the future education and marriage expenses of a girl child in India. Accounts under this scheme can be opened at any India Post office or authorized commercial banks. The account can be opened anytime between the birth of a girl child and the time she attains 10 years of age. Under the Sukanya Samriddhi Yojana, parents or guardians can open an account for a girl child. Normally, each child is allowed to have only one account.

The exception is made for twins and triplets. In such cases, parents can open a maximum of two accounts for each child. One of the benefits of the Sukanya Samriddhi Yojana is that the account can be transferred to any location within India without any hassle. To open an account, deposit a minimum of ₹250 initially. Then, you can add money in multiples of ₹100. The maximum annual deposit limit is ₹150,000. Not depositing ₹250 annually results in a ₹50 penalty. Once the girl child reaches the age of 10, she can operate the account herself. This provides a sense of financial independence and responsibility.

When the girl child turns 18 years old, she can withdraw 50% of the accumulated amount for higher education purposes. The account reaches maturity after a period of 21 years from the date of opening. Deposits are allowed for up to 15 years from the account opening date. After this period, the account will only earn the applicable rate of interest. Closing the account before maturity means it won’t earn interest at the current rate. However, in case the girl is over 18 years old and married, normal closure of the account is allowed. Overall, the Sukanya Samriddhi Yojana provides a structured and beneficial savings scheme for the future well-being of girl children in India, encouraging financial planning and securing their educational and marriage expenses.

Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana (SSY) is a government savings scheme in India. It encourages parents to save for the future education and marriage expenses of their girl child. The account can be opened from the birth of the girl’s child until she turns 10. Minimum deposit: ₹250 initially. Subsequent deposits: multiples of ₹100. The maximum annual deposit limit is ₹150,000. The scheme offers a government-determined interest rate, subject to revision each year. The account reaches maturity after 21 years. Partial withdrawals are allowed for higher education purposes when the girl child turns 18. SSY provides tax benefits and aims to secure the financial future of girl children in India.

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana is a special savings scheme introduced by the government to empower and secure the future of girl children. It is a part of the Beti Bachao Beti Padhao campaign, focusing on their welfare. Parents can open Sukanya Samriddhi Yojana accounts for their daughters below the age of 10 at designated banks or post offices. The account matures after 21 years or when the girl child gets married after turning 18. This scheme offers an attractive interest rate and provides tax benefits. For more detailed information about Sukanya Samriddhi Yojana, refer to the complete article.

Interest Rate, Sukanya Samriddhi Yojana

The government declares the Sukanya Samriddhi Yojana interest rates on a quarterly basis. For the July-September quarter of the fiscal year 2023-24, the interest rate has been set at 8% per annum.

Sukanya Samriddhi Yojana Eligibility

Sukanya Samriddhi Yojana is exclusively available for girl children aged up to 10 years, with a one-year grace period. Only biological parents or legal guardians can open the account on behalf of the girl child. Max 2 accounts per parent/guardian, except for twins/triplets who can have up to 3 accounts. The account holder must be an Indian citizen and a resident of India during the account opening and throughout its duration.

For the Account holder child:

• The Sukanya Samriddhi Yojana saving scheme is exclusively available for girl children.
• The eligible age for a girl child to avail of the Sukanya Samriddhi Yojana scheme is up to 10 years, with a one-year grace period granted.

For the Parents:

• The Sukanya Samriddhi Yojana account can only be opened by the biological parents or legal guardians of a girl child.
• A parent or legal guardian is allowed to open a maximum of two accounts for their girl children.
• If there are twins or triplets, the parent or legal guardian can open up to three accounts in such cases.
• The account holder must be an Indian citizen and resident in India at the time of opening the account and throughout its duration until maturity or closure.

Sukanya Samriddhi Yojana Maturity Period

Sukanya Samriddhi Yojana remains active until the girl child reaches 21 years of age or gets married after turning 18. Contributions are required for 15 years, but the account continues to earn interest until maturity, even if no further deposits are made.

Investing Benefits In Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana (SSY) provides a secure investment option with low risk as it is backed by the government. The scheme offers guaranteed returns, ensuring parents can safeguard their daughter’s financial future.

Investing in Sukanya Samriddhi Yojana offers several benefits:

1. High-Interest Rate: The scheme provides an attractive interest rate, which is declared by the government and is higher compared to other savings options.
2. Long-term Savings: The tenure of the scheme is 21 years, allowing for long-term savings and compounding of interest over time.
3. Tax Benefits: Contributions made to Sukanya Samriddhi Yojana are eligible for tax deductions under Section 80C of the Income Tax Act, providing tax savings.
4. Financial Security for the Girl Child: The scheme aims to secure the future of the girl child by creating a dedicated savings fund for her higher education or marriage expenses.
5. Flexible Deposit Options: Deposits can be made in flexible amounts, starting with a minimum initial deposit of ₹250, and subsequent deposits can be made in multiples of ₹100.
6. Partial Withdrawals: After the girl child turns 18, partial withdrawals are allowed for higher education purposes, providing financial support for pursuing further studies.
7. Government-Backed: Sukanya Samriddhi Yojana is a government-backed scheme, that ensures the safety and credibility of the investment.

Investing in Sukanya Samriddhi Yojana not only helps in building savings but also ensures a secure future for the girl child, along with potential tax savings and competitive interest rates.

How to Open an Account & Invest, Sukanya Samriddhi Yojana

To open an account and invest in Sukanya Samriddhi Yojana (SSY), follow these steps:

1. Eligibility: Ensure that you meet the eligibility criteria. Only parents or legal guardians of a girl child below the age of 10 can open an account.
2. Visit Authorized Banks or Post Offices: Locate a designated bank or post office that offers Sukanya Samriddhi Yojana accounts. These institutions are authorized to open SSY accounts.
3. Application Form: Obtain the Sukanya Samriddhi Yojana application form from the bank or post office. Fill it out with accurate details, including the girl child’s information and the parent/guardian’s details.
4. Required Documents: Prepare the necessary documents, such as the birth certificate of the girl child, identity proof of the parent/guardian, and address proof. Make sure to carry original documents along with photocopies.
5. Account Opening: Submit the completed application form and the required documents to the bank or post office. Pay the minimum initial deposit amount, which is currently ₹250.
6. Account Activation: Once the account is opened, you will receive a passbook containing the account details. This passbook serves as a record of transactions and interest earned.
7. Deposits: Make regular deposits into the SSY account. Deposits can be made in multiples of ₹100, with a maximum annual limit of ₹150,000.
8. Monitoring and Maintenance: Keep track of the account balance and ensure timely deposits are made. Maintain the passbook properly, noting any transactions or interest credited.

By following these steps, you can successfully open an account and invest in Sukanya Samriddhi Yojana, securing a better financial future for your daughter.

How to Transfer Sukanya Samriddhi Yojana Account

• One of the notable advantages of the Sukanya Samriddhi Yojana (SSY) account is its easy transferability within India. The existing rules allow for seamless transfer of this tax-saving deposit account, benefiting a girl child, from one India Post Office to another or from one designated bank branch to another.
• To initiate the transfer of your SSY account from a post office, you need to complete and submit a transfer request form to the Post Master at the India Post Office where your account is presently held.
• By following this process, you can conveniently transfer your SSY account while ensuring the continuity of the benefits it offers. It’s worth noting that specific forms and procedures may vary depending on the institution involved, so it’s advisable to contact the respective post office or bank branch for accurate and up-to-date instructions on initiating the transfer.

Step-by-Step Process to Transfer Sukanya Samriddhi Yojana Account:

To transfer a Sukanya Samriddhi Yojana account, you will need to follow these steps:

• Visit the post office or bank where the existing Sukanya Samriddhi Yojana account is held.
• Inform the bank/post office about your intention to transfer the account.
• Fill out the transfer application form.
• Provide the necessary documents, which typically include:

1. The original passbook/account statement of the existing Sukanya Samriddhi Yojana account.
2. KYC (Know Your Customer) documents of the account holder and the guardian.
3. Proof of address and identity documents for both the account holder and the guardian.

• Submit the transfer application form and the required documents to the bank/post office.
• The existing account will be closed, and the account balance will be transferred to the new bank/post office branch as specified in the transfer application.
• The new bank/post office will open a new Sukanya Samriddhi Yojana account for you and provide you with a new passbook.
• Ensure that all the details in the new passbook are accurate. If any corrections are needed, inform the bank/post office immediately.

Sukanya Samriddhi yojana Withdrawal Process

Withdraw For the Education Purpose:

Once the girl child reaches the age of 18 years and has successfully completed the 10th standard, she becomes eligible to make withdrawals from the Sukanya Samriddhi Account for the purpose of further studies. Under this provision, the account holder can withdraw up to 50% of the amount available in the account as of the previous year specifically for educational expenses. This withdrawal can be utilized to support the girl child’s educational pursuits, such as college fees, tuition expenses, or any other related educational costs.

Premature Withdraw For Marriage Purposes:

When a girl child attains the age of 18 years and intends to withdraw funds from the Sukanya Samriddhi Account for the purpose of marriage, certain procedures need to be followed. To initiate the withdrawal, the account holder must submit an application either one month before or three months after the marriage. Along with the application, the girl child is required to provide necessary documents as proof of identity, and a marriage certificate must be submitted as well. By adhering to the specified timeline and providing the required documentation, the account holder can request a withdrawal from the Sukanya Samriddhi Account for the purpose of marriage. It’s important to note that the withdrawal process and specific document requirements may vary, so it’s advisable to consult the official guidelines or contact the respective post office or bank branch where the account is held for accurate instructions.

Premature Withdraw For Other Purpose:

In the unfortunate event of the girl child’s death, the parents or guardians have the provision to withdraw the amount from the Sukanya Samriddhi Account by submitting the necessary documents as required. Upon fulfilling the prescribed requirements, the parents or guardians can request the withdrawal of funds from the account after the girl child’s demise. The specific documents needed may vary depending on the institution managing the account, and it is advisable to contact the respective post office or bank branch for accurate information on the documents to be submitted in such circumstances. If the girl child loses her Indian citizenship, it is important to note that the Sukanya Samriddhi Account will be closed. This account is designed specifically for Indian citizens, and if the account holder is no longer an Indian citizen, the account will not remain active.

Conclusion

The Sukanya Samriddhi Yojana has emerged as a commendable initiative by the Indian Government to promote financial security and empowerment for the girl child. This long-term savings scheme offers numerous benefits, including attractive interest rates, tax advantages, and flexibility in deposits. The Sukanya Samriddhi Yojana encourages parents and guardians to save for their daughters’ future. It helps them support their daughters’ education, become financially independent, and achieve their life goals. By promoting a savings culture, the scheme empowers families to invest in their daughters’ futures and ensures they have the means to pursue higher education and a brighter future. The scheme plays a crucial role in supporting girls’ aspirations and providing them with opportunities for a successful and independent life. With its emphasis on empowering the girl child and promoting gender equality, the Sukanya Samriddhi Yojana has played a significant role in transforming lives, nurturing aspirations, and creating a brighter future for countless young girls across the nation.

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