Introduction
The Sukanya Samriddhi Yojana (SSY) is a savings scheme launched by the Indian government. This scheme has been specifically designed for the welfare of the girl child. It encourages parents to secure their daughter’s future by investing in her education and marriage. With attractive interest rates and tax benefits, the Sukanya Samriddhi Account is a must have for parents who cannot afford their daughter’s education.
What is Sukanya Samriddhi Yojana?
The Sukanya Samriddhi Yojana is a government-backed savings scheme. It is intended for parents or guardians of a girl child under the age of 10. It offers a high interest rate of 8.2% per annum (as of January 1, 2024) and allows for flexible deposits.
Sukanya Samriddhi Yojana at a Glance
| Investment Amount | Minimum Rs 250 and maximum up to 1.5 lakh per annum |
| Interest rate (per annum) | 8.2% |
| When to open Sukanya Samriddhi Account | Within 10 years of birth of a girl child |
| Maturity duration | Twenty-one years from the date of investment |
| Maturity amount | Depends on the invested amount |
| Investment Amount | Minimum Rs 250 and maximum up to 1.5 lakh per annum |
| Interest rate (per annum) | 8.2% |
| When to open Sukanya Samriddhi Account | Within 10 years of birth of a girl child |
| Maturity duration | Twenty-one years from the date of investment |
| Maturity amount | Depends on the invested amount |
The Sukanya Samriddhi Account (SSA) can be opened by a parent or legal guardian in the name of a girl child who is below 10 years of age. Each family can open one account per girl child, with a maximum of two accounts per family. However, in the case of twins or triplets, more than two accounts are allowed.
Where Can You Open the Sukanya Samriddhi Yojana Account?
The Sukanya Samriddhi Account can be opened either at a post office or at an authorized bank. It is important to note that only one account per girl child is allowed, regardless of whether it is opened at a post office or a bank.
Minimum and Maximum Deposits Under Sukanya Samriddhi Account
The account can be opened with a minimum deposit of Rs 250. After that, a minimum of Rs 250 must be deposited each financial year to keep the account active. The maximum deposit allowed is Rs 1.5 lakh per financial year. Deposits can be made in lumpsum or in multiple instalments, with no limit on the number of deposits in a month or year.
Duration of Deposits
Deposits can be made up to 15 years from the date of opening the account. After this period, the account will continue to earn interest until it matures, even if no further deposits are made.
Defaulted Accounts
If the minimum deposit of Rs 250 is not made in a financial year, the account will be considered as defaulted. However, the account can be revived before the completion of 15 years. To do so, one needs to pay the minimum deposit along with a penalty of Rs 50 for each defaulted year.
Interest Rate and Calculation Under Sukanya Samriddhi Account
The interest rate for the Sukanya Samriddhi Account is set by the Ministry of Finance and is subject to change every quarter. As of January 1, 2024, the interest rate is 8.2% per annum. Interest is compounded yearly and is credited to the account at the end of each financial year.
Tax Benefits Under Sukanya Samriddhi Yojana Account
The interest earned on the Sukanya Samriddhi Account is tax-free under the Income Tax Act. Additionally, deposits made into the account qualify for a deduction under Section 80C of the Income Tax Act, up to a maximum of Rs 1.5 lakh per financial year.
Who Operates the Account?
The account is operated by the guardian until the girl child reaches the age of 18. After that, the account can be managed by the girl herself.
When Can Withdrawals Be Made?
Withdrawals can be made from the account after the girl child turns 18 or has passed the 10th Board. Up to 50 percent of the balance available at the end of the preceding financial year can be withdrawn. Withdrawals can be made either in one lumpsum or in instalments, with a maximum of one withdrawal per year over five years.
Purpose of Withdrawal
Withdrawals are primarily intended to cover educational expenses or other necessary expenses related to the girl child’s welfare.
Conditions for Premature Closure
The account can be prematurely closed after five years from the date of opening, but only under specific conditions:
1. In the event of the account holder’s death.
2. On compassionate grounds such as life-threatening diseases of the account holder or the death of the guardian.
3. Proper documentation and application are required for premature closure.
Procedure for Premature Closure
To close the account prematurely, the prescribed application form, along with the passbook, must be submitted at the concerned post office or bank.
Account Maturity and Closure
The Sukanya Samriddhi Account matures after 21 years from the date of opening. However, the account can be closed earlier if the girl child gets married after attaining the age of 18. The account cannot be closed before one month or after three months from the date of marriage.
How to Open a Sukanya Samriddhi Yojana Account in a Post-office?
Sukanya Samriddhi Yojana account can be opened either in the post office or in any authorized bank. Follow the procedures as mentioned below:
- Visit a nearby post-office or bank
- Fill out the application form (Form – 1) correctly and include supporting documents
- Pay the first instalment (minimum amount: 250 or maximum amount: 1.5 lakh) by cash, cheque or demand draft.
- The application will be processed by the post-office or the bank
- After successful processing, the SSY account will be opened. A passbook is issued against the savings account
Frequently Asked Questions (FAQs)
Q1: Can I open more than one Sukanya Samriddhi Account for my daughter?
A: No, only one account can be opened per girl child, either at a post office or a bank.
Q2: What happens if I fail to deposit the minimum amount in a financial year?
A: The account will be considered as defaulted, but it can be revived by paying the minimum deposit along with a penalty.
Q3: Is the interest earned on the Sukanya Samriddhi Account taxable?
A: No, the interest earned is tax-free under the Income Tax Act.
Q4: Can I withdraw the full amount from the account before it matures?
A: No, only partial withdrawals are allowed after the girl child turns 18. You can withdraw up to 50% of the balance available at the end of the preceding financial year.
Q5: What is the maximum amount I can deposit in a Sukanya Samriddhi Account?
A: The maximum deposit allowed is INR 1.5 lakh per financial year.
Q6: When does the Sukanya Samriddhi Account mature?**
A: The account matures 21 years from the date of opening or at the time of the girl child’s marriage after she turns 18.
Conclusion
The Sukanya Samriddhi Yojana is an excellent savings scheme that provides financial security for the girl child. With its attractive interest rates, tax benefits, and flexibility, it is the best way for parents to plan for their daughter’s future. Whether for education or marriage, this scheme ensures that your daughter’s financial needs are well taken care of.