SSY – Sukanya Samriddhi Yojana Benefits & Interest Rates

SSY or Sukanya Samriddhi Yojana is a scheme of welfare for girls that was designed as a component of the ‘Beti Bachao, Beti Padhao’ drive. Investing in this child insurance plan allows the legal guardians or parents to give economic security to a girl child who is 10 years old or below 10 years. As per the Sukanya Samriddhi Yojana, an account for the girl can be opened in any private or public sector banks for a period of twenty-one years. Also, the term for the SSY investment is 21 years, starting with the opening date of the account.

SSY or Sukanya Samriddhi Yojana Is?

Sukanya Samriddhi Yojana is a savings scheme that is sponsored by the government and aimed at improving the life of every girl in India. Sukanya Samriddhi Yojana was launched to provide a bright future for the girl child and allows parents to build a fund for their girl child’s future education and marriage expenses.

Also, read Saving Schemes in India.

Sukanya Samriddhi Yojana, or SSY is a deposit scheme designed specifically for girls. This program was created to provide a future that is secure for girls.

This deposit scheme will help you to make consistent savings for your girl child. You can amass a sufficient corpus by making regular deposits throughout the year. The corpus will help your daughter realize her goals, such as education.

If you want to open an account under the Sukanya Samriddhi Yojana Scheme, you can do so at either of the following locations.

1. a) Banking institutions
2. b) Post offices

Features of Sukanya Samriddhi Yojana

Also read Post Office Investments – PPF, NSC, FD, RD, MIS, KVP, SSY.

Features	Details
LIMIT OF THE DEPOSIT	– Miin. Deposit: Rs 250/- (Initial Deposit), Further deposits in multiples of 50 – Max. Deposit: Rs 1,50,000/-
HOLDER OF THE A/C	– If the girl child is under 10y old, then the account will be handled by the parent or guardian of the girl. – A Girl can take control of the account once she turns 18
MATURITY	21 years after opening the account. You have to deposit for at least 15 years
DOCUMENTATION REQUIRED	– Birth Certificate of the girl child – Form-1 – PAN or AADHAR of the Parent or Guardian
DEPOSITS	Deposits can be made through the following: – online transfer or NEFT – demand draft – cash – cheque

Banks that offer SSY account

The below-mentioned banks offer the SSY scheme:

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

Interest Rates for Sukanya Samriddhi Yojana

The current rate of interest on your Sukanya Samriddhi Yojana account is 7.6% p.a. This interest rate will be in effect beginning April 1, 2020. This is a decrease from the previous rate of 8.4%.

If you deposit between the 12th of December 2019 and the 31st of March 2020, you will earn 8.4% p.a.

1. a) Interest is paid to you yearly
2. b) Interest is only credited at the end of each fiscal year
3. c) Interest rates are set by the government and change quarterly;
4. d) No interest is paid if the girl becomes an NRI.

The following table displays the interest rates offered by the SSY scheme since its inception:

YEARS	RATE (in %)
April 2020 – Present	7.6% p.a.
1 January 2019 – 31 March 2019	8.5% p.a.
1 October 2018 – 31 December 2018	8.5% p.a.
1 July 2018 – 30 September 2018	8.1% p.a.
1 April 2018 – 30 June 2018	8.1% p.a.
1 January 2018 – 31 March 2018	8.1% p.a.
1 July 2017 – 31 December 2017	8.3% p.a.
1 October 2016 – 31 December 2016	8.5% p.a.
1 July 2016 – 30 September 2016	8.6% p.a.
1 April 2016 – 30 June 2016	8.6% p.a.
1 April 2015 – March 31, 2016	9.2% p.a.
3 December 2014 – March 31, 2015	9.1% p.a.

Sukanya Samriddhi Yojana Benefits?

• Significant Interest: Sukanya Samriddhi Account pays a higher rate of interest compared to the other several Saving Schemes. This offers better security for girls. The government declares the applicable interest rate for that fiscal year each year, whereas the interest on your investments is compounded yearly. The assets in your Sukanya Samriddhi Yojana account will have multiplied by the power of compounding by the time you reach maturity.

• Significant Tax Benefits: Contributions to the Sukanya Samriddhi Yojana for the future of your daughter are tax deductible under Section 80C of the Income Tax Act of 1961. As a result, you can claim tax benefits up to Rs 1.5 lakh invested in the scheme. Furthermore, tax breaks are available on both the interest earned and the amount received upon maturity or withdrawal. The Sukanya Samriddhi Yojana is one of the more popular investment schemes that come with the exempt-exempt-exempt (EEE) status and is administered by the Department of Revenue (DOR).

• Maturity Benefits are Guaranteed: At maturity, your Sukanya Samriddhi Yojana account balance, including accumulated interest, will be paid directly to the girl child (or policyholder). As a result, the scheme essentially assists your daughter in becoming financially independent and empowered once she is mature enough to make her own life decisions. Another advantage of investing in the Sukanya Samriddhi Yojana is that your accumulated savings continue to earn compound interest even after maturity until the account is finally closed by the account holder.

• Tax Benefits: If you have an SSY account, you may be eligible for tax breaks on deposits. Consider the tax advantages provided by the Sukanya Samriddhi Yojana.

1. a) Because an SSY account is a type of investment, it qualifies for deductions under Section 80C of the Income Tax Act. You are eligible for a deduction of up to Rs 1,50,000.

1. b) The compound interest accumulated in your deposit account is also tax-free.

1. c) Withdrawals are tax-free as well. As a result, once your account matures, you can withdraw the funds without penalty.

How to Open Sukanya Samriddhi Yojana?

1. Go to your local bank or post office.

1. Complete the Sukanya Samriddhi Yojana application form. This is referred to as FORM SSA- 1. This form will be provided to you by the bank or post office you visit.

1. You can also download the form and fill it out ahead of time.

1. After completing this form, you must submit the required documents. These are some:

1. a) Birth certificate of the girl child for whom you wish to open an account; b) Identity proof of the parent/guardian (AADHAR card, PAN card, Voter ID, etc.)

1. c) Address Proof: Driver’s License, Utility Bill, etc.

1. Make your initial deposit. A minimum deposit of Rs 250 is required. You can deposit up to Rs 1.5 lakh.

1. The bank will process your application after you have submitted all of the required documents.

1. Your SSY account will be activated after verification. You will be given a passbook.

How to Create a Sukanya Samriddhi Yojana Account at the Post Office

1. Complete the Post Office Savings Bank account opening form.

1. Attach your ID, address proof, and other supporting documents to the application form.

1. Make the deposit (it should be more than Rs 250)

1. Wait for the application to be processed.

1. Your account will be opened after processing, and you will be given the passbook.

How to Make an Online Sukanya Samriddhi Yojana Payment?

1. Install the IPPB (Indian Postal Payments Bank) app. IPPB is a division of Indian Post. You can download it from the link  https://www.ippbonline.com/

1. To begin, transfer funds from your current bank account to your IPPB account.

1. Locate the ‘DOP Product’ section now. Select the SSY account link.

1. After that, enter your SSY account number as well as your DOP customer ID.

1. Choose the amount and duration of your deposit to your SSY account.

1. Wait for IPPB confirmation of the successful transfer.

1. Once you receive confirmation, your payment is complete and your payment routine is established.

Withdrawal Procedures for Sukanya Samriddhi Yojana

1. Application form for the withdrawal of the amount.

1. ID proof

1. Address proof

1. Citizenship documents

Premature withdrawal from SSY account rules

• Premature withdrawal from SSY is permitted once the girl reaches the age of 18 and marries. To receive the benefit, however, an application must be submitted at least one month before the marriage and three months after the marriage. Documents proving the girl’s age must also be provided.

• If the girl child becomes a non-citizen or non-resident, the account is considered closed. Any such change in status must be reported within one month of the change in status by the guardian or the girl child.

• If the girl child dies, the guardian may withdraw the balance in the account. The death certificate, however, must be submitted.

• If the account has been open for 5 years or more and the bank or post office believes that the account’s continuation is causing difficulties for the girl child, the guardian or girl child may request that the account be closed prematurely.

• Permission to close the account will also be granted for other reasons, but the interest earned from contributions will be the same as the interest rates offered by post offices.

Want to put your money into something more stable than Sukanya Samriddhi Yojana?

As a result of all of these tax advantages, Sukanya Samriddhi Yojana is an E-E-E instrument. Exempt-Exempt-Exempt, in other words.

You can open a Sukanya Samriddhi Account by visiting any of the locations listed below.

– Postal Service 

– Banks

Here are the steps you can take to open your Sukanya Samriddhi Account: 

Your SSY account can be opened at a Post Office or a bank. The steps below will show you how to open a Post Office account.

Go to your local Post Office (PO):

To make the payment process more convenient for you, the SSY scheme allows deposits to be made online as well, eliminating the need for you to visit the location. Here’s how to make an online deposit.

The following are the withdrawal rules for the SSY account:

The girl child can withdraw the entire amount available in the account, including the interest, once the duration of the account has expired. The following documents, however, must be submitted:

Withdrawal for higher education is permitted if the girl child has reached the age of 18 and has completed the 10th grade. However, the funds must be used for the admission fee or any other charges levied at the time of admission.

When applying for a withdrawal, documents such as admission to the university or college, as well as the fee receipt, must be submitted.

The maximum amount that can be withdrawn is 50% of the previous year’s available amount. The money can be withdrawn in five installments or all at once.

The following are the rules that allow for the account to be closed prematurely:

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