Sukanya Samriddhi Yojana Plan (SSY Scheme)
Launched by the Hon’ble Prime Minister in January 2015, the Sukanya Samriddhi Yojana (also called SSY) is a deposit scheme backed by the Government of India. This revolutionary scheme was launched under the “Beti Bachao, Beti Padhao” (Save the Girl Child, Educate the Girl Child) campaign. However, you might have heard of it, or it might be new to you, but either way, we’re here to break down Sukanya Samriddhi Yojana details in simple terms. Let’s begin.
What is Sukanya Samriddhi Yojana Plan (SSY Scheme)?
Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme launched in India on January 22, 2015. Its primary objective is to promote the financial security and empowerment of girl children. A guardian or parent can open a sukanya samriddhi account for a girl child who is 10 or below the age. Therefore, launched under the “Beti Bachao, Beti Padhao” campaign, the SSY scheme carries a high return rate with several tax benefits.
BBBP aims to achieve the following:
- Save and protect the girl child from discrimination and gender-based violence.
- Promote the education of girls and ensure their access to quality schooling.
- Eradicate female foeticide and improve the skewed sex ratio in India.
- Provide financial support and incentives for the welfare and education of girl children.
Therefore, the Sukanya Samriddhi Yojana scheme is a rallying cry to recognize the untapped potential of our daughters.
Sukanya Samriddhi Yojana Eligibility
To participate in the SSY scheme and avail of its benefits, certain eligibility criteria must be met which include:
- A parent or legal guardian can initiate the account for the girl child.
- The girl child’s age must be under 10 years.
- Only one account can be opened for a girl child.
- A family can open a maximum of 2 SSY scheme accounts.
Note: Sukanya Samriddhi Account can be opened for more than two girls in some special cases, as outlined below-
- When a girl child is born before twin or triplet girls, it’s possible to open a third account.
- If a girl child is born after the birth of twin or triplet girls then, opening a third SSY account is not allowed.
How to Invest in Sukanya Samriddhi Yojana Scheme?
Investing in the Sukanya Samriddhi Yojana plan is a straightforward process. Investors can easily apply for this scheme in any Indian post office or authorised branch of private banks. Therefore, all you need is the required documents which we will be covering in the next section. With as little as Rs. 250, you can open this deposit account for your daughter.
Application Process to Open a Sukanya Samriddhi Account
The application process to open a Sukanya Samriddhi account is fairly simple. It is designed to encourage parents & guardians to secure the future of their girl child. Thus, in India, Sukanya Samriddhi Yojana Accounts can be opened at 25 authorized banks and Indian post offices to execute a hassle-free process.
Documents Required
Sukanya Yojana Details: Documents required to open an account
- Girl child’s birth certificate
- Parent or guardian’s photo ID
- Parent or guardian’s address proof
- Additional KYC documents like PAN and Voter ID
- A medical certificate has to be submitted in case multiple children are born under one order of birth.
Sukanya Samriddhi Account Online Process
To make online payments to your SSY account, start by downloading the IPPB app on your smartphone. Thereafter, with the app, you can easily set up automatic deposits to your SSY account. Here are the steps:
- Transfer money from your bank account to IPPB.
- Use the IPPB app to access DOP Products and select Sukanya Samriddhi Yojana.
- Enter your SSY account number and DOP client ID.
- Specify the instalment amount and duration.
- Receive confirmation on the successful payment setup.
- Get app notifications for every transfer.
Sukanya Samriddhi Account Offline Process
You can initiate a Sukanya Samriddhi Yojana scheme at any authorized bank or Post Office branch. Therefore, follow these steps for the offline process:
- Go to the bank or Post Office where you want to open the account.
- Fill out the application form with the necessary information & documents.
- Make the first deposit in cash, check, or demand draft.
- The payment can range between Rs.250 and Rs.1.5 lakh. The bank or Post Office will process your application and payment.
- Once processed, your SSY yojana account will be activated. Additionally, a passbook will be supplied for this account to commemorate the SSY scheme account’s opening.
Sukanya Samriddhi Yojana Interest Rate for 2024
The Sukanya Samriddhi Yojana interest rate for 2024 is relatively fixed by the government of India and is reviewed every quarter. Here is a breakdown of the interest rate for 2024:
| SSY Interest Rate | 8.2% p.a. |
| Investment Amount | Minimum – Rs.250; Maximum Rs.1.5 lakh p.a. |
| Maturity Amount | It depends on the amount invested |
| Maturity Period (sukanya samriddhi yojana age limit) | 21 years |
Sukanya Samriddhi Yojana (SSY) Interest Rates: Previous Rates
Let’s have a look at the different periods that were followed by different Sukanya Samriddhi Yojana scheme rates.
| Time Period | SSY Interest Rate (% annually) |
|---|---|
| Apr to Jun 2023 (Q1 FY 2023-24) | 8.0 |
| Jan to Mar 2023 (Q4 FY 2022-23) | 7.6 |
| Oct to Dec 2022 (Q3 FY 2022-23) | 7.6 |
| Jul to Sep 2022 (Q2 FY 2022-23) | 7.6 |
| Apr to Jun 2022 (Q1 FY 2022-23) | 7.6 |
| Jan to Mar 2022 (Q4 FY 2021-22) | 7.6 |
| Oct to Dec 2021 (Q3 FY 2021-22) | 7.6 |
| Jul to Sep 2021 (Q2 FY 2021-22) | 7.6 |
| Apr to Jun 2021 (Q1 FY 2021-22) | 7.6 |
| Jan to March 2021 (Q4 FY 2020-21) | 7.6 |
| Oct to Dec 2020 (Q3 FY 2020-21) | 7.6 |
| Jul to Sep 2020 (Q2 FY 2020-21) | 7.6 |
| Apr to Jun 2020 (Q1 FY 2020-21) | 7.6 |
| Jan to March (Q4 FY 2019-20) | 8.4 |
| Oct to Dec 2019 (Q3 FY 2019-20) | 8.4 |
| Jul to Sep 2019 (Q2 FY 2019-20) | 8.4 |
| Apr to Jun 2019 (Q1 FY 2019-20) | 8.5 |
| Jan to March 2019 (Q4 FY 2018-19) | 8.5 |
| Oct to Dec 2018 (Q3 FY 2018-19) | 8.5 |
| Jul to Sep 2018 (Q2 FY 2018-19) | 8.1 |
| Apr to Jun 2018 (Q1 FY 2018-19) | 8.1 |
| Jan to March 2018 (Q4 FY 2017-18) | 8.1 |
| Oct to Dec 2017 (Q3 FY 2017-18) | 8.3 |
| Jul to Sep 2017 (Q2 FY 2017-18) | 8.3 |
| Apr to Jun 2017 (Q1 FY 2017-18) | 8.4 |
Calculate Returns Via Sukanya Samriddhi Yojana Calculator
Now that we have covered the basics of Sukanya Samriddhi Yojana scheme, it’s time to know how you can calculate your investments ahead of time. You might want to know how much you will invest, how the Sukanya Samriddhi Yojana interest rates will be panned out each year & calculate the maturity amount. Therefore, Sukanya Samriddhi Yojana Calculator by smallcase is a great way to start planning.
The SSY calculator is an easy to use tool with a smart user-interface.
To calculate the interest earned on a Sukanya Samriddhi account, you can generally use the following SSY scheme formula:
A = P(1 + r/n)^(n*t)
Initiatives for Women in the Union Budget for 2024
In the Budget 2024 speech, Finance Minister Nirmala Sitharaman announced several initiatives for women in the workforce, like:
1. She allocated Rs 3 trillion for schemes benefiting women and girls, aiming to increase their workforce participation by establishing working women’s hostels and creches in collaboration with industries.
2. Partnerships will organise women-specific skilling programmes and promote market access for women-led Self-Help Group (SHG) enterprises.
3. The Gender Budget’s share of the total Union Budget has risen to 6.5% for the Financial Year 2025, the highest since its introduction in 2006.
4. Sitharaman also encouraged States to moderate high stamp duty for urban development and further reduce duties for properties purchased by women.
Chief Economic Advisor V Anantha Nageswaran highlighted in the Economic Survey that India is shifting from women’s development to women-led development. He noted a 218.8% increase in budgetary allocation for women’s welfare and empowerment schemes.
Features of Sukanya Samriddhi Yojana
The Sukanya Samriddhi Yojana offers a high-interest rate, tax benefits, and the option of partial withdrawal after the girl child turns 18 years old. Thus, here are some of the features of Sukanya Samriddhi Yojana scheme:
| Features | Details |
|---|---|
| Operation of the account | The guardian or parents can operate the account until the girl reaches the age of 10 years. Therefore, in the SSY scheme, the girl must operate the account once she attains the age of 18 years. |
| Deposits made towards the account | In a given financial year, you can deposit a minimum of Rs. 500 and a maximum of Rs. 1.5 lakh in your account. Thus, the deposits can be made in multiples of 100. |
| Duration of the scheme | Contributions to the SSY scheme must be maintained for 15 years, with the scheme reaching maturity after 21 years. |
| Transfer of account | You can transfer your Sukanya Samriddhi account between post offices and banks across India without incurring any transfer fees. However, you must provide proof of a change in residence. Additionally, failure to produce this proof will result in a nominal charge of Rs.100. |
| Mode of deposits | Deposits towards the Sukanya Samriddhi account can be made in the form of online transfer, demand draft, cheque, or cash. |
Benefits of the Sukanya Samriddhi Yojana Scheme
Here are some of the Sukanya Samriddhi Yojana benefits:
- High-Interest Rate: The interest rate on the Sukanya Samriddhi Yojana online is 8% per annum, which is one of the highest among small savings schemes.
- Tax Benefits: The entire amount, including the interest earned, is tax-free on maturity. Thus, this means that you do not have to pay any taxes on the money you have saved for your daughter’s education and marriage.
- Option of Partial Withdrawal: You can withdraw up to 50% of the balance after the girl child turns 18 years old. This can be used to meet her educational expenses.
- Secure Investment: The sukanya samriddhi scheme is a government-backed scheme, which means that your money is safe.
Tax Benefits of the SSY Scheme
To promote investments in Sukanya Samriddhi Yojana (SSY), specific tax advantages have been extended to the scheme by the government.
- Tax Deduction Under Section 80C: You can claim a deduction of up to Rs. 1.5 lakh for the amount deposited in the Sukanya Samriddhi account under Section 80C of the Income Tax Act.
- Tax Exemption on Interest Income: The interest earned on the Sukanya Samriddhi account is tax-exempt under Section 10(E) of the Income Tax Act. Thus, this means that you do not have to pay any tax on the interest earned on your investment.
Sukanya Samriddhi Yojana Scheme Tenure/ Maturity Period
The Sukanya Samriddhi Yojana (SSY) has a tenure of 21 years. The SSY interest rate account matures on the 21st birthday of the girl child or upon her marriage after attaining the age of 18 years. Whichever is earlier. However, contributions only need to be made for 15 years.
Thereafter, the Sukanya Samriddhi account continues to earn interest until maturity even if no deposits are made into it.
Sukanya Samriddhi Yojana Withdrawal Rules
The Sukanya Samriddhi Yojana chart withdrawal rules are as follows-
- Once the sukanya samriddhi account duration is completed, the entire amount along with the accumulated interest can be withdrawn.
- The documents that are required for sukanya samriddhi yojana account withdrawal are:
- Application form for the withdrawal amount
- ID & Address proof
- Citizenship Documents
- Up to 50% of the balance can be withdrawn. Therefore, this happens in case of higher education or marriage after she turns 18 years old or has passed Class 10, whichever is earlier.
- All the documents & the related fee receipts that need to be submitted for admission will be required during the withdrawal process.
Rules for Premature Withdrawal from SSY Account
The Sukanya Samriddhi Yojana (SSY) allows premature withdrawal under certain circumstances. These circumstances are:
- If, unfortunately, the girl child passes away before the age of 18, the entire amount in the SSY or sukanya samriddhi account can be withdrawn by the parents or grandparents.
- If the girl child gets married before the age of 18, up to 50% of the balance in the SSY account can be withdrawn.
- If the girl child is diagnosed with a life-threatening disease, up to 50% of the balance in the Sukanya Samriddhi Yojana scheme account can be withdrawn.
- In case of extreme compassionate grounds, such as the girl child being orphaned or becoming a victim of a natural disaster, up to 50% of the balance in the sukanya samriddhi account can be withdrawn.
Key Points to Keep in Mind About Sukanya Yojana (SSY Scheme)
- The account matures either after 21 years or upon the girl child’s marriage after turning 18.
- Partial withdrawals (up to 50%) are allowed once the child reaches 18, even if the girl isn’t getting married.
- Investment duration: 21 years.
- Minimum annual investment: Rs 1,000
- Maximum annual investment: Rs 1.5 lakh
- Upon maturity, the principal and accrued interest are disbursed to the girl child upon application submission with necessary proof of citizenship, residency, and identity.
To Wrap it Up…
In conclusion, the Sukanya Samriddhi Yojana (SSY) scheme stands as a beacon of financial empowerment and gender equality in India. Additionally, to further simplify your SSY investment planning, don’t forget to utilize the Sukanya Samriddhi Yojana calculator. Therefore, it is readily available online and allows you to estimate future returns based on your contributions.
FAQs
The maximum annual deposit limit for the Sukanya Samriddhi Yojana (SSY) is Rs. 1.5 lakh.
Yes, the Sukanya Samriddhi account can be transferred to your preferred location from the post office to authorized bank or authorized private bank to another.
As of now, there is no official communication regarding this issue, however, for now, the SSY account will be closed if the girl child becomes an NRI or loses her Indian citizenship.
No. Only one parent can claim a tax deduction for the Sukanya Samriddhi deposit amount under Section 80C of the Income Tax Act. This is because the tax deduction is given for the amount deposited in the SSY account, and only one person can deposit money in the account.
Yes. The Sukanya Samriddhi Yojana primarily focuses on benefiting girl children, whereas the Personal Provident Fund (PPF scheme) is designed to facilitate savings for retirement or extended periods. It is possible to avail of both schemes simultaneously, as they serve distinct financial purposes.
