Sukanya Samriddhi Yojana (SSY)

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Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme for the benefit of girl child. It is a part of the Beti Bachao, Beti Padhao Yojana and can be opened by the parents of a girl child below the age of 10. It can be opened at designated banks or post offices. A Sukanya Samriddhi Account has a tenure of 21 years or until the girl child marries after the age of 18.

What is the Sukanya Samriddhi Yojana (SSY)?

SSY aims at tackling a major problem associated with the girl child – education and marriage. It is focused on securing a bright future for the girl child in India by facilitating the parents of a girl child in building a fund for the proper education and a carefree marriage expenses of their child. SSY has introduced the Sukanya Samriddhi Account for this very purpose.

Interest Rates : 7.6% per annum (Q1 FY 2021-22)

Maturity Period : 21 years or until the girl child marries after the age of 18

Minimum Deposit Amount : Rs. 250

Maximum Deposit Amount : Rs. 1.5 Lakh in a financial year

Eligibility : Parents or legal guardian of a girl child below the age of 10 are eligible to open the SSY in the name of the girl child

Income Tax Rebate : Eligible for rebate under section 80C of the Income Tax Act, 1961 (Maximum cap of Rs. 1.5 Lakh in a year)

Sukanya Samriddhi Yojana interest rate

The rate of interest for the 2nd quarter of FY 2021-2022, i.e. 1 July 2021 to 30 September 2021, has been kept unchanged at 7.6%.
The rate of interest for the 1st quarter of FY 2021-2022 i.e. 1 April 2021 to 30 June 2021 was 7.6%.
The entire deposit in ‘Account under default’ (where a minimum amount of Rs 250 has not been deposited), which is not regularised within the prescribed time, would earn interest on the post savings bank account; except if the default is due to the death of the guardian who opened the Account.

Sukanya Samriddhi Yojana (SSY) Eligibility

Only parents or legal guardians of a girl child can open an SSY account
The girl child has to be below the age of 10 at the time of account opening
Only one account can be opened in the name of a girl child
Only two SSY accounts are allowed for a family i.e. one for each girl child

Note: Sukanya Samriddhi Account can be opened for more than two girls in some special cases which are-

If a girl child is born before the birth of twin or triplet girls or if triplets are born at first, then a third account can be opened
If a girl child is born after the birth of twin or triplet girls, a third SSY account cannot be opened

Benefits of Investing in Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana( सुकन्या समृद्धि योजना ) introduced as part of the Beti Bachao, Beti Padhao Yojana initiative, provides investors with a range of benefits. Some of the key benefits of this scheme are as follows:

High Interest Rate- SSY offers a higher fixed rate of return (currently 7.6% per annum for Q1 FY 2020-21) as compared to other government-backed tax saving schemes such as PPF.

Guaranteed Returns- Since SSY is a government-backed scheme, it provides guaranteed returns.

Tax Benefit- SSY provides tax deduction benefits under Section 80C up to Rs. 1.5 lakh annually.

Flexible Investment- One can make a minimum deposit of Rs. 250 in a year and a maximum deposit of Rs. 1.5 lakh in a year. This ensures people with different financial standing can invest in the scheme.

Benefit of Compounding- Sukanya Samriddhi Yojana (SSY) is a great long-term investment scheme as it provides the benefit of annual compounding. So, even small investments will give great returns over the long term.

Convenient Transfer- SSY account can be freely transferred from one part of the country to another (bank/post office) in case of transfer of parent/guardian operating the Sukanya Samriddhi Account.

Sukanya Samriddhi Yojana (SSY) Deposit Limits

The minimum annual contribution to the Sukanya Samriddhi Account is Rs. 250 and the maximum contribution is Rs. 1.5 lakh in a financial year. You have to invest at least the minimum amount every year for up to 15 years from the date of account opening. Thereafter the account will continue to earn interest till maturity.

Other Key Features of Sukanya Samriddhi Yojana (SSY)

If an SSY account holder is unable to make even the minimum deposit of Rs. 250 in a financial year, his/her account will be termed as a ‘Default Account’. Till the maturity date, this default account will earn the interest rate as applicable in the scheme.
A girl child can operate her own account after the age of 18 years. Once she is 18 years old, she is eligible for operating the SSY after submitting all the necessary documents to the post office/bank where the account is being held.

How to open a Sukanya Samriddhi Yojana Account?

You can open a Sukanya Samriddhi Yojana (SSY) account with a participating bank or a Post Office branch. You need to follow the below procedure to open the account.

Visit the bank or Post Office branch where you would like to open the account.
Fill up the application form with relevant details and provide supporting documents.
Pay the first deposit in the form of cash, cheque, or demand draft. The amount can be anything from Rs.250 up to Rs.1.5 lakh.
The bank or Post Office will process your application and payment.
Upon processing, your SSY account will be opened. A passbook will be issued for this account marking the initiation of the account.

How to fill SSY Application Form

The SSY Application Form requires applicants to provide some key data regarding the girl child in whose name the investment will be made under the Beti Bachao, Beti Padhao Yojana. Details of the parent/guardian who will be opening the account/making deposits on her behalf are also required. The following are the key fields that are featured in the SSY Application Form:

Name of Girl Child (Primary Account Holder)
Name of Parent/Guardian opening the account (Joint Holder)
Initial deposit amount
Cheque/DD Number and Date (used for an initial deposit)
Date of Birth of girl child
Birth Certificate details of primary account holder (Certificate number, date of issue, etc.)
ID Details of Parent/Guardian (Driving License, Aadhaar, etc.)
Present and Permanent Address (as per ID document of parent/guardian)
Details of any other KYC Documents (PAN, Voter ID card, etc.)

Once the above details have been filled out, the form needs to be signed and submitted with the account opening authority (Post office/Bank Branch) along with copies of all applicable documents.

Transfer of Sukanya Samriddhi Yojana Account

One of the key benefits of the Sukanya Samriddhi Yojana Account is the fact that it is easily transferable from one part of India to another. Under existing rules, you can transfer this tax-saving deposit account for benefit of girl child from one India Post Office to another or from one designated bank branch to another with ease.

To initiate the transfer of your SSY account from a post office, you will have to fill out and submit the transfer request form with the Post Master of the India Post Office where your account is currently located. Similar transfer forms are available online as well as offline in case you want to transfer the deposit from one designated bank branch to another.

Sukanya Samriddhi Yojana Calculator

The benefit of any investment can only be determined based on how much the investment grows over time. The following is a sample calculation showing the high returns you can get by making contributions to the Sukanya Samriddhi Yojana.

Let’s assume the following:

The girl child is born in 2020 and the parents start the SSY account for her in the same year. The account will finally mature after 21 years where the girl child will get the complete maturity amount.

Annual investments = Rs. 1 lakh
Investment Period = 15 years
Total amount invested at the end of 15 years = Rs. 15 lakh
Interest rate for 1 year= 7.6%
Interest at the end of 21 years= Rs. 3,10,454.12
Maturity Value at the end of 21 years= Rs. 43,95,380.96

How to fill the Sukanya Samriddhi Yojana form for the Post Office?

Here is how the Post Office account opening form looks like:

In order to fill the form, you can follow these steps:

Enter the Post Office branch name.
If you already have a savings account with the Post Office, mention the corresponding account number.
Under ‘To The Postmaster’, mention the Post Office branch and postal address details.
Paste the applicant(s) photograph to the right.
Next to ‘I/We’, mention the applicant’s name and in the following space, mention Sukanya Samridddhi Yojana.
Skip the content in the box as it is applicable only for opening PO savings accounts.
Under ‘Account Holder Type’, tick the relevant type of account. Seek the Post Office personnel’s help to determine this.
The same goes for the ‘Account Type’ field.
Further, mention the amount you are going to deposit to the SSY account once it is created. Write the amount in both figure and words.
Tick the mode of payment, whether cash, cheque or DD. In the case of a cheque or DD, write down the number and date mentioned on it.
Enter the details, such as the name of the applicant, gender, Aadhaar number, PAN, address, and others enquired for in the table.
The applicant(s) should make signatures at the end of Page 1 to authorise all the information written so far.
In Page 2 section (5), mention details if you would like to set standing instructions to pay for the SSY account.
Check the square box next to SSA to state that no other SSY accounts have been opened under the name of the depositor.
Next, add the date and make the signature.
Fill in the nomination details.
Get the signature of two witnesses if the applicant is illiterate.
Further, add the date, place, and signature at the end of the nomination section.

Where to open an account under sukanya samriddhi yojana?

You can open a Sukanya Samriddhi Yojana account either with a participating bank or a Post Office branch. The participating banks are:

State Bank of India
Allahabad Bank
Andhra Bank
Punjab and Sind Bank
Bank of Baroda
Canara Bank
Bank of India
Bank of Maharashtra
Corporation Bank
Central Bank of India
Indian Overseas Bank
Dena Bank
Indian Bank
UCO Bank
Syndicate Bank
United Bank of India
Punjab National Bank
Union Bank of India
Oriental Bank of Commerce
IDBI Bank
Vijaya Bank
Axis Bank
ICICI Bank

How to pay for sukanya samriddhi yojana online?

You have to download the IPPB app on your smartphone to make online payments towards your SSY account. Through this app, you can set standing instructions so that a specified amount will be transferred online to your SSY account. Here is the step-by-step procedure:

Step 1: Transfer money from your bank account to the IPPB account.

Step 2: On the IPPB app, go to DOP Products and choose the Sukanya Samriddhi Yojana account.

Step 3: Enter your SSY account number and the DOP customer ID.

Step 4: Choose the amount you would like to pay and the instalment duration.

Step 5: IPPB will notify you of the success of setting up the payment routine.

Step 6: Each time the app makes the money transfer, you will be notified of the same.

When was sukanya samriddhi yojana launched?

Sukanya Samriddhi Yojana was launched by Prime Minister Narendra Modi on 22 January 2015 in Panipat, Haryana.

How to submit proof for sukanya samriddhi yojana?

You have to walk down to the Post Office or a bank branch where you have submitted the SSY application to submit the documents and proofs. You need to submit a physical copy of the following documents:

Birth certificate of the girl child
Identity and address proof of the guardian
In the case of birth multiple girl children in a single order of birth, medical certificate for proof on the same
Any other documents as required by the post office or banks

How to calculate sukanya samriddhi yojana interest?

The interest for the SSY account is calculated on the lowest balance for the calendar month, i.e. between the fifth day of the month and the end of the month. The interest will be credited once, at the end of each financial year.

Generally, you can use the below formula to calculate the interest earned on an SSY account:
A = P(1+r/n)^nt
Here
P = Initial Deposit
r = Rate of interest
n = Number of years the interest compounds
t = Number of years
A = Amount at maturity

Since the interest accrued on an SSY account is compounded on a yearly basis, it may not be a simple task to manually calculate the interest. Instead, you can use our Sukanya Samriddhi Yojana Calculator to arrive at the maturity amount upon entering the details, such as probable investment amount per year, the age of the girl child, and the account commencement year.

What is the frequency of investment allowed under sukanya samriddhi yojana?

You can deposit money in an SSY account either once per financial year or in smaller, regular instalments. However, you need to make a minimum payment of Rs.250 per financial year to keep the account active and running and follow this criterion for a minimum payment period of 15 years.

If you choose to make deposits in instalments, the interval between the instalments can be anything as per your convenience. There is no restriction on the number of deposits you can make in a month or in a financial year.

How to claim/withdraw sukanya samriddhi yojana?

You must submit the duly filled withdrawal form along with the SSY account passbook to the bank or Post Office branch where the account is maintained.

In order to claim or withdraw prematurely, you need to satisfy some conditions, such as for marriage expenses or for the higher education of the girl child.

Upon maturity of the account, the amount will be paid to the girl child holding the account.

In another case, you may prematurely close the account and claim the deposit amount only after completing five years of account opening, for the following reasons:

On the death of the account holder.
A life-threatening disease of a/c holder.
Death of the guardian who operated the account.

How many accounts opened in sukanya samriddhi yojana?

Only one account can be opened per girl child, either in Post Office or in any bank. This account can be opened for a maximum of two girl children in a family. Only in the case of twins or triplets girls’ birth, more than two accounts can be opened in a family.

Who can withdraw money from sukanya samriddhi yojana?

Only the girl child, in whose name the account is opened, can withdraw the money from her SSY account upon maturity. The guardian can withdraw the money if the girl child has not attained the age of 18 years.

How much should I invest in sukanya samriddhi yojana?

You can invest any amount from Rs.250 up to Rs.1.5 lakh per financial year in the SSY account.

What is the age limit for sukanya samriddhi yojana?

The SSY account must be opened from the time of girl childbirth but before the girl child attains the age of 10 years.

How to transfer sukanya samriddhi yojana?

In order to transfer SSY account from Post Office (PO) to a bank, follow these instructions:

Visit the PO branch where the account is held. The girl child need not visit the PO branch as the guardian can complete the process.
Inform the PO executive about your intent to transfer the SSY account.
Submit the duly filled account transfer form, the passbook, and KYC documents. The executive will discontinue the account on your request.
Now, visit the bank branch where you would like to maintain the SSY account.
Submit the self-attested KYC documents and any other paperwork provided to you by the PO executive while requesting to maintain the account with them.
Once the bank executive processes your request, a new passbook will be provided.

What is the duration of the sukanya samriddhi yojana account?

The payment period for SSY accounts is 15 years, while the maturity period of the account is a minimum of 21 years.

Which is better? PPF or sukanya samriddhi yojana?

PPF is a government-backed retirement saving scheme whereas, SSY is a government-backed small savings scheme dedicated to girl child development. Both accounts provide tax benefits. While a PPF account can be opened by anybody, an SSY account can only be opened in the name of a girl child before she attains the age of 10 years. PPF balance can be liquidated to a certain extent, while the same may not be true for the SSY account.

Both schemes are designed for different purposes and therefore, picking a better option between the two schemes is tough. Here is a table that gives a comparative picture of both schemes.

Parameters	Public Provident Fund (PPF)	Sukanya Samriddhi Yojana (SSY)
Minimum Deposit per Financial Year	Rs.500	Rs.250
Maximum Deposit per Financial Year	Rs.1.5 lakh	Rs.1.5 lakh
Eligibility Criteria	Any single adult who is a resident Indian	Girl child below the age of 10 years
Maturity Period	15 years	21 years
Payment Period	15 years	15 years
Interest Rate	7.1% p.a. (Q2 of FY 2021-22); Compounded yearly	7.6% p.a. (Q2 of FY 2021-22); Compounded yearly
Tax Benefits	EEE benefit	EEE benefit
Premature Withdrawal	Upon completing five financial years	Upon the girl child attaining 18 years

How much amount will I get in sukanya samriddhi yojana?

The maturity amount of an SSY account depends on the contributions you make every year. Further, you can prematurely withdraw 50% of the deposit amount once the girl child attains 18 years of age either for educational purpose or for marriage expenses.

How to check sukanya samriddhi yojana account balance?

A passbook will be issued upon opening the SSY account with a bank or Post Office. You can visit the bank or PO branch where the account is held and get the updated information regarding the account balance printed on the passbook.

How to download the sukanya samriddhi yojana statement?

Not all banks allow you to access SSY account details online. Check if the bank your account is held with provides this service. If it does, request the bank executive to provide login ID and password to access your SSY account online.

Log into the bank’s internet banking portal using the credentials given by the bank executive.
On the homepage/dashboard, the account balance will be displayed.

offlice website : Click here

Frequently Asked Questions

Can I take a loan against the balance in the SSY account?

No. The facility of loan against SSY account balance is not currently available. You can avail the option of loan against PPF instead.

Is premature closure of the Sukanya Samriddhi Yojana Account allowed?

Yes. Premature closure of the Sukanya account is allowed in certain cases. This may include compassionate grounds due to terminal illness, the unexpected demise of the primary account holder, etc. However, the decision to allow such closure is on a case by case basis.

Can I continue investing in SSY if my daughter and I move to another country?

The SSY account will have to be closed if the girl child becomes an NRI or loses her Indian citizenship.

What is the penalty if I miss my SSY account minimum annual payment?

There will be a penalty of Rs. 50 if the minimum amount of Rs. 250 is not deposited in the account during a financial year.

Is there tax on SSY account interest?

No. SSY is a completely exempt (EEE) investment hence the principal amount invested, the interest earned as well as the maturity amount are all tax-exempt.