If you’re a parent with a young daughter or a family member looking to invest in a girl child’s future, the Sukanya Samriddhi Yojana Scheme is definitely worth considering.
This government-backed savings scheme is designed to provide financial security to young girls in India. However, there may be some aspects of the scheme that you are not aware of. In this page, we’ll take you through everything you need to know about the Sukanya Samriddhi Yojana Scheme.
Sukanya Samriddhi Yojana Account
The Sukanya Samriddhi Yojana Account is a government-backed savings scheme for girls under the age of 10. The current interest rate on this scheme is 7.60%. Only one account can be opened per girl child, and up to two girls in a family can open an account.
The account can be opened at a post office or an authorized bank branch, and a birth certificate must be submitted while opening the account. The account can be transferred anywhere in India, and it matures after completion of 21 years.
|Name of the Scheme||Sukanya Samriddhi Yojana|
|Title||Check the Sukanya Samriddhi Scheme|
|Subject||The GoI introduced Sukanya Samriddhi Yojana|
|SS Account||India Post Sukanya Samriddhi Account|
|India Post website||https://www.indiapost.gov.in/|
Sukanya Samriddhi Yojana
India Post Sukanya Samriddhi Yojana is a savings scheme for the girl child, launched by the Indian government. Sukanya Samriddhi Scheme is a government-backed savings scheme launched in India to encourage parents to save for the future education and marriage of their girl child.
The SSY scheme is open to all parents or legal guardians of girl children under the age of 10 and can be opened at any India Post Office or authorized branches of commercial banks.
The minimum deposit required to open an account is Rs. 250, and the maximum deposit is Rs. 1.5 Lakhs per year. The interest rate is determined by the Indian government and is currently at 7.6% p.a.
Withdrawals from the account are allowed only after the girl child reaches the age of 18, and the account matures after 21 years from the date of opening. The account also offers tax benefits under Section 80C of the Income Tax Act.
The scheme helps to create a corpus for the girl child’s future education and marriage expenses and also helps to promote the girl child education. It is a good scheme for the parents who want to save money for the future education and marriage of their girl child.
How many Sukanya Samriddhi Accounts can be Opened?
Only one Sukanya Samriddhi Account can be opened per girl child. The account can be opened by the legal guardian of the girl child, usually the father or mother. The account can be opened at any India Post Office or authorized branches of commercial banks.
The account can be opened in the name of the girl child, and the deposit can be made by the legal guardian or any other person on behalf of the girl child. Once the account is opened, the girl child becomes the account holder and the legal guardian acts as the account operator.
It is also possible to open a new account for each girl child if the parents have more than one girl child and want to save for their future education and marriage.
Can I Get a Loan on This?
No, a loan cannot be availed against this scheme. However, partial premature withdrawal is allowed. The amount can be partially withdrawn for necessary expenses like a girl’s marriage or higher education. Withdrawal is allowed only for the future welfare of the girl in Sukanya Samriddhi. There is no facility to withdraw cash from the account for any other purpose.
What is the minimum deposit to open SSA Account and Maximum Deposit?
SSA Deposits: The account may be opened with an initial deposit of (Rs.1000/-) one thousand rupees and thereafter any amount in multiple of one hundred rupees may be deposited subject to the condition that a minimum of one thousand rupees shall be deposited in a financial year.
But the total money deposited in an account on a single occasion or on multiple occasions shall not exceed (Rs.1,50,000/-) one lakh fifty thousand rupees in a financial year. So, Minimum Deposit: 1000/- and Maximum Deposit : 1,50,000/- for a financial year
Deposits in an account may be made till completion of fourteen years. from the date of opening of the account.
Is premature closure allowed?
Premature closure of account: In the event of death of the 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.
Where the Central Government is satisfied that operation or continuation of the 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.
SSA Pass Book
Pass book: On opening an account, the depositor shall be given a pass book bearing the date of birth of the girl child, date of opening of account, account number, name and address of the account holder and the amount deposited. Sukanya Samriddhi Account Rules
The pass book 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.
Is Premature withdrawal Allowed?
Transfer of account: The account may be transferred anywhere in India if the girl child in whose name the account stands shifts to a place other than the city or locality where the account stands.
Withdrawal: To meet the financial requirements of the account holder for the purpose of higher education and marriage, withdrawal up to (50%) fifty per cent. of the balance at the credit, at the end of preceding financial year shall be allowed.
The withdrawal referred to in sub-rule (1) shall be allowed only when the account holder girl child attains the age of (18) eighteen years. Sukanya Samriddhi Account Rules.
Can the Girl Child continue the SSA after her marriage?
Closure on maturity: The account shall mature on completion of (21 years) twenty-one 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 twenty-one years, the operation of the account shall not be permitted beyond the date of her marriage.
Provided further that where the account is closed under the first proviso, the account holder shall have to give an affidavit to the effect that she is not less than eighteen years of age as on the date of closing of account.
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 pass book.
If the account is not closed in accordance with the provisions of sub-rule (1), interest as per the provisions of rule 7 shall be payable on the balance in the account till final closure of the account.
Power to relax: Where the Central Government is satisfied that the operation of any provision of these rules causes undue hardship to the account holder or account holders, it may, by order and for reasons to be recorded in writing, relax the requirements of that provision in a manner not inconsistent with the provisions of the Act.
- What is the Rate of Interest on SSY?
The interest rate on a Sukanya Samriddhi Account is determined by the Indian government and may change from time to time. Currently, the interest rate on Sukanya Samriddhi Account is 7.6% per annum. The interest rate is compounded annually and is credited to the account on March 31st every year. The interest rate is guaranteed by the government, so it is considered a relatively safe investment option. The interest earned on the account is also tax-free.
- Who can the Open the SSY Account?
The Sukanya Samriddhi 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 and any girl child, who had attained the age of ten years, one year prior to the commencement of these rules, shall also be eligible for opening of the account under these rules.
- Can the Girl Child Operate the SS 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 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.
- What is the mode of Deposit of SSY?
The deposit in the account opened under these rules may be made – (a) in cash; or (b) by cheque or demand draft drawn in favour 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 name of the account holder and account number in which the deposit is to be credited. Where 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.
- Is there any penalty on irregular account?
An irregular account where minimum amount has not been deposited may be regularised on payment of a penalty of (Rs.50/-) fifty rupees per year along with the said minimum specified subscription for the year (s) of default any time till the account completes fourteen years.
- What is the Minimum/Maximum Deposit?
A minimum deposit of Rs.250 per year is required, and a maximum of Rs.1.50 lakh can be paid. Deposits must be made until the account lock-in period is 21 years.
- Are Multiple Deposits Allowed?
Yes, amounts more than Rs.100 can be deposited any number of times in a financial year. However, the maximum deposit amount in that year should not exceed Rs.1.50 lakhs.
- What Happens If No Deposit is Made?
A fine of Rs.50 will be levied if the minimum deposit is not made in the account in any year. The account will become a 'Default Account', but interest will continue to accrue on the existing deposit.
- Under What Circumstances Can the Account Be Closed?
Parents can close the account early due to many reasons like marriage of girl child, change of citizenship, non-residence in the country, etc. However, the account should be maintained for at least 5 years before making such a request. The account can also be closed early in case of the death of the account holder (girl) or terminal illness.
- Is This Scheme Tax Free?
Yes, deposits up to a maximum of Rs.1.50 lakh are exempt from income tax under Section 80C. There is no income tax on interest. Withdrawal in between is also tax-free on the entire return at the time of maturity.
- Can Partial Withdrawal Be Done Early?
Yes, up to 50% of the total balance can be partially withdrawn from the account. After the girl attains the age of 18, premature withdrawal of up to 50% for higher education is allowed. Withdrawal can be done all at once or in installments. Proof of 10th class certificate is required for this.
- Can the Account Be Continued After Maturity?
Yes, the amount can be fully withdrawn after maturity, or the account can be maintained to earn interest on the balance.
The Sukanya Samriddhi Yojana scheme is an excellent savings option for parents looking to secure their daughter’s future. With a high interest rate, tax benefits, and partial withdrawal options, it provides a flexible and safe way to save for your daughter’s education or marriage. It’s essential to keep in mind the rules and regulations of the scheme to make the most out of it.