Sukanya Samriddhi Yojana 2023: Interest Rates, Age Limit, Tax Benefit & More Details

The Sukanya Samriddhi Yojana is a government savings plan for girls. Parents can open an account before their daughter is 10 and deposit ₹250-₹1.5 lakh annually. It has a high-interest rate and tax-free earnings. Secure your daughter’s future education and marriage now.

The Sukanya Samriddhi Account Scheme offers tax benefits as one of its significant advantages. A deduction of up to 80C can be claimed on deposits made in the account, which helps individuals reduce their tax liabilities.

Updates: The government increased the interest rates for a special savings plan called Sukanya Samriddhi Yojana by a little bit. This plan helps families save money for their daughters’ future. Now, if you put money in this plan, the government will give you a bit more interest on it – 8.2% instead of the earlier 8%. They do this kind of change every few months, and this time they did it a bit before the big election coming up.

What is Sukanya Samriddhi Yojana (SSY)?

• Empowering Financial Security: Sukanya Samriddhi Yojana is a vital tool to provide financial security to girls. Through this program, families can benefit from tax benefits and a government-backed savings account while investing in their daughters’ education and well-being.
• Enabling Education and Life Milestones: Families often struggle to pay for girls’ education and marriage. As a result, parents can take advantage of this scheme to facilitate major events such as marriage and higher education.
• Accessing Funds and Fostering Higher Education: The account holder can access the funds once she attains the age of 18, with the option to use the proceeds for higher education expenses. In cases where the account holder gets married after turning 18, the account can be prematurely closed to support the marriage expenses.
• Convenience in Transfer and Maturation Benefit: With the flexibility to transfer the account from one authorized post office or bank to another across India, the Sukanya Samriddhi Account Scheme provides convenience and accessibility to account holders. Furthermore, the account matures after 21 years after the opening date, offering a substantial corpus that can be utilized for various life goals.

Eligibility Criteria

Age Limit and Maturity Period of Sukanya Samriddhi Yojana:

• Age Limit for Account Opening: A Sukanya Samriddhi Yojana (SSY) account can be opened in the name of a girl child until she attains the age of 10 years. This means the account must be initiated before the girl child turns 10.
• Maturity Period: The SSY account matures after a period of 21 years from the date of opening. Additionally, if the account holder girl child gets married after attaining 18 years of age, the account will be considered mature at that point.

In essence, the account can be opened until the girl child is 10 years old, and it matures either after 21 years or upon her marriage after turning 18, whichever comes earlier.

• Any individual can open an account in the name of a girl child up to ten years of age. In other words, you can say that Sukanya Samriddhi Yojana accounts can only be opened by parents or legal guardians of a girl child.
• You are allowed to open just one account for each girl child.
• In a family, you can open accounts for a maximum of two girl children.

Opening Multiple Accounts for Girls in Special Cases:  You can have more than two accounts in certain scenarios.

• If a girl is born before twins or triplets, or if triplets are born first, a third account can be opened.
• However, if a girl is born after twins or triplets, you cannot open a third account.

Where to Open Sukanya Samriddhi Account?

You have the option to open an account at either a post office or any public sector bank. Additionally, specific private banks like ICICI Bank, Axis Bank, and HDFC Bank also allow account openings. It is very easy to open a Sukanya Samriddhi Yojana account at a post office or any public or private sector bank. You have the choice to open the account through traditional means (offline), and additionally, you can choose to make the payment either online or offline.

How to Open Sukanya Samriddhi Account in Post Office?

A Sukanya Samriddhi Yojana (SSY) account can be opened at a Post Office easily. You will need to follow these steps in order to set up the account:

1. The first step is to select the Post Office branch where you wish to open your SSY account.
2. Fill out the application form (Form-1) accurately and attach all necessary supporting documentation.
3. The third step is to make the initial deposit, which can be done by cash, check, or demand draft. A deposit of between Rs. 250 and Rs. 1.5 lakh can be made.
4. In Step 4, the Post Office will review your initial deposit and process your application.
5. Your SSY account will be officially activated once the processing is complete. A passbook will be sent to you after your account is successfully initiated.

Using these steps, you can easily open a Sukanya Samriddhi Yojana account at your local Post Office.

How to Fill SSY Application Form?

Filling out an SSY account form for a post office is a very simple process. Here’s a step-by-step guide to help you:

1. Obtain the Form: Get the Sukanya Samriddhi Yojana (SSY) account opening form from your nearest post office. It’s usually available at the counter or can be downloaded from the official website of the post office.
2. Fill in Personal Details:  Enter the girl child’s name, date of birth, and gender. Fill in the guardian’s name, relationship, and contact information.
3. Provide Address Details: Mention the permanent address of the guardian and girl child.
4. Nomination Details (Optional): If you want to nominate someone, fill in their name and relationship.
5. Choose Mode of Operation: Indicate if the account will be operated jointly or solely by the guardian.
6. Deposits and Transaction Details: Specify the amount you want to deposit initially and the preferred mode of payment (cash, cheque, or demand draft).
7. Attach Documents: Attach copies of the girl child’s birth certificate, guardian’s ID and address proofs, and any other required documents.
8. Nomination Details (Optional): If you want to nominate someone, provide their name and relationship.
9. Signatures: Both the guardian’s and the girl child’s names should be signed where required.
10. Submit the Form: Once the form is completed and all necessary documents are attached, submit it at the post office counter.
11. Verification and Acknowledgment: The post office will verify the form and documents. Once verified, they will provide you with an acknowledgment receipt.

Required Documents for Opening an SSY Account

To initiate the process of opening a Sukanya Samriddhi Yojana (SSY) account, the following documents are necessary:

1. SSY Account Opening Form: Begin by filling out the SSY account opening form, available at the bank or post office.

2. Birth Certificate of Girl Child: Provide the birth certificate of the girl child at the time of account opening. This document confirms her identity and age.

3. Depositor’s ID and Address Proof: Present valid identification and address proofs of the depositor (guardian) when opening the account.

4. Medical Certificate (if applicable): If multiple children are born under one order of birth (like twins or triplets), a medical certificate verifying the situation may be required.

5. Additional Documents: Be prepared to submit any other documents as requested by the bank or post office to complete the account opening process.

By having these essential documents in order, you can successfully open a Sukanya Samriddhi Yojana account, ensuring a smooth and efficient application process.

Deposits

• Initial Deposit: Start the account with a minimum of Rs. 250, and add more in multiples of Rs. 50.
• Annual Deposit Range: Every year, you can deposit between Rs. 250 and Rs. 1,50,000.
• Deposit Options: You can deposit all at once or in parts.
• Excess Deposit: Deposits exceeding Rs. 1,50,000 won’t earn interest but can be withdrawn.
• Irregular Accounts: If you miss deposits, you can catch up by paying a Rs. 50/year penalty along with the missing deposit amount.
• Payment Modes: Payments can be made in cash, cheque, demand draft, or e-transfer.

SSY Interest Rates

• The current rate of the Sukanya Samriddhi Yojana is 8.2% per year. (January to March 2024)
• If an ‘Account under default’ exists (where the yearly minimum deposit of Rs. 250 hasn’t been met), the money in that account will still earn interest until the account matures.
• If you have an ‘Account under default,’ you can fix it within 15 years from opening by paying Rs. 50 as a penalty for each year you missed depositing the minimum amount.
• Once 21 years have passed since opening the account, no more interest will be added.
• If the girl child becomes a non-citizen or non-resident of India, the account stops earning interest.
• If you deposit more than the maximum allowed amount (Rs. 1,50,000 per year), that extra money won’t earn any interest. However, you can withdraw it whenever you want.
• The deposits in the account earn interest at the notified rate.
• Interest rates have varied over different periods, as indicated in the table.
• Interest is compounded yearly and credited to the account.
• Interest is calculated monthly based on the lowest balance between the 5th day and the end of each month.

Interest Rate Period	Interest Rate (%)
From 1.1.2024	8.2
From 1.4-2023	8.0
From 1.4.2020	7.6
1.7.2019 to 31.3.2020	8.4
1.10.2018 to 30.6.2019	8.5
1.1.2018 to 30.9.2018	8.1
1.7.2017 to 31.12.2017	8.3
1.4.2017 to 30.6.2017	8.4
1.10.2016 to 31.3.2017	8.5
1.4.2016 to 30.9.2016	8.6
F.Y. 2015-16	9.2
F.Y. 2014-15	9.1

Sukanya Samriddhi Yojana Calculator Excel: Download Free SSY Calculator

Sukanya Samriddhi Yojana Calculator – Calculate Maturity Amount, Period and Interest Amount

Account Operation Process

• Guardian’s Role: The guardian will manage the account until the girl child reaches 18 years of age.
• Beneficiary’s Takeover: Once the girl child turns 18, she will take control of the account’s operation.

Transferring the Account

• Within India: If the account holder’s girl child or guardian moves to a different place in India, the account can be transferred without any charge. Proof of the change of residence will be needed.
• To Another Bank or Post Office: In other situations, if you want to transfer the account to a different bank or post office within India, a fee of Rs. 100 will be required.

Transferring SSY Account from Post Office to Bank

The transfer process is very simple and the guardians are able to manage the entire procedure without the girl child’s presence. Whether relocating the account within post offices or shifting it to a bank, the transfer is executed at no cost.Usually, moving your account is free. But if it’s not about moving, there might be a fee of Rs. 100. This makes sure the transfer is easy and keeps the girl child’s money safe.

To move a Sukanya Samriddhi account from a post office to a bank, follow these steps:

• Visit Post Office: Go to the post office where the account is currently held.
• Notify Transfer Intent: Inform the post office executive about your intention to transfer the account to a bank. Submit a duly filled account transfer form.
• Submit Required Documents: Provide the passbook and necessary KYC documents along with the transfer form.
• Account Discontinuation: The post office executive will discontinue the account upon the beneficiary’s request.
• Visit Bank Branch: Visit the bank branch where you want to transfer the account.
• Submit Documents: Hand over the required documents, including self-attested KYC documents.
• New Passbook Issuance: After the transfer request is processed, the bank will issue a new passbook.

Always ensure to confirm the specific requirements and steps at the post office and bank to ensure a smooth and accurate account transfer process.

Premature Closure

Premature closure of a Sukanya Samriddhi Yojana account is possible under certain circumstances. These situations include:

• Due to Account Holder’s Death: If the account holder passes away, the account can be closed before maturity. To do this, you’ll need to provide a death certificate. The remaining balance along with interest earned up to the date of death will be paid to the guardian.
• Interest After Death: Interest for the period between the date of death and the closure of the account will be paid at the POSB (Post Office Savings Bank) rate.
• Compassionate Grounds: In situations of extreme compassion, like life-threatening diseases or the death of the beneficiary, early closure (after 5 years) might be allowed. However, this requires thorough documentation and a written explanation of the reasons.

Sukanya Samriddhi Yojana Withdrawal Rules

Withdrawal from the Sukanya Samriddhi Yojana account follows these guidelines:

• Age or Class X: Withdrawal from the account is permitted when the girl child account holder turns 18 years old or after completing Class X, whichever happens earlier.
• Purpose: The withdrawal is intended for higher education expenses.
• Limit: Up to 50% of the account balance at the end of the previous financial year can be withdrawn.
• Fee Restriction: The withdrawal amount is limited to the actual fee amount charged by the educational institution.

These rules ensure that the Sukanya Samriddhi Yojana account serves as a financial resource for the girl child’s educational needs.

Maturity of Sukanya Samriddhi Yojana Account

The maturity terms for the Sukanya Samriddhi Yojana account are as follows:

• Maturity Period: The account matures either after 21 years from the opening date or upon the marriage of the account holder, whichever comes earlier.
• Marriage Clause: If the account holder is at least 18 years old and gets married, the account matures at that point.
• Payout: Upon maturity, the complete account balance, including the accumulated interest, is paid to the account holder.

In essence, the Sukanya Samriddhi Yojana account reaches maturity either after 21 years or upon the account holder’s marriage, with the full balance and interest becoming payable upon maturity.

Sukanya Samriddhi Yojana Passbook

• Issuance of Passbook: When you open a Sukanya Samriddhi Yojana account, you will receive a passbook. This passbook will contain important information such as the girl child’s date of birth, name, and address, the account’s opening date, the account number, the guardian’s name, address, and relationship, as well as the deposited amount.
• Choice of Record Keeping: You have the option to maintain the account’s record in electronic form only, provided the post office or bank utilizes the CBS (Core Banking Solution) facility.

In summary, the passbook issued upon opening the Sukanya Samriddhi Yojana account holds crucial details about the account and its transactions. Additionally, you can choose electronic record-keeping if the relevant facility is available.

Tax Benefit under Sukanya Samriddhi Yojana

Eligible Deduction: The yearly deposit made into the Sukanya Samriddhi Yojana account, up to Rs. 1,50,000, is eligible for deduction from the depositor’s income under Section 80C of the Income Tax Act.

Maturity Amount: The maturity amount from Sukanya Samriddhi Yojana is exempt from tax.

In essence, the deposits you make in the Sukanya Samriddhi Yojana account, up to the specified limit, can be deducted from your taxable income under Section 80C. This can provide potential tax savings.

Benefits of the Sukanya Samriddhi Yojana Scheme

The Sukanya Samriddhi Yojana offers a range of advantages aimed at securing the financial future of the girl child and promoting her education and well-being. Some key benefits include:

1. Financial Security: The scheme provides a dedicated savings platform to ensure financial security for the girl child’s future needs, including education, marriage, and more.
2. Tax Benefits: Deposits made in the SSY account qualify for deductions under Section 80C of the Income Tax Act, offering potential tax savings for the guardian or depositor.
3. Higher Interest: The scheme offers competitive interest rates that are compounded annually, helping the deposited amount grow over time.
4. Flexibility in Deposits: The scheme allows flexible deposit amounts, enabling contributors to invest as per their financial capacity while aiming for the maximum yearly limit.
5. Withdrawal for Education: Partial withdrawal is permitted for the girl child’s higher education expenses once she reaches the age of 18 or completes Class X, whichever comes earlier.
6. Transferability: The account can be transferred anywhere within India, ensuring continued accessibility even when relocating.
7. Maturity Benefits: The account matures after 21 years from the opening date or upon the girl child’s marriage after attaining 18 years of age, providing a substantial corpus for life goals.
8. Empowering Girls: As a dedicated initiative for the girl child’s welfare, the scheme underscores gender equality and empowerment by ensuring financial support for her future endeavors.
9. Government Backing: The scheme is government-backed, ensuring reliability and security for the deposited funds.

In summary, the Sukanya Samriddhi Yojana offers a comprehensive package of financial benefits, tax advantages, and empowerment for the girl child’s holistic development and future endeavors.

SSY vs PPF

Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF) are two popular savings schemes in India, each with its unique features and benefits. The following table highlights the key differences between these schemes, helping you make an informed decision based on your financial goals and circumstances.

Aspect	Sukanya Samriddhi Yojana (SSY)	Public Provident Fund (PPF)
Target	Girl child’s education & marriage	All Indian citizens
Purpose	Education & marriage funding	Various financial goals
Eligibility	Girl child up to age 10	All Indian citizens, including minors and NRIs
Deposit Limits	Min Rs. 250, Max Rs. 1.5 lakh/year	Min Rs. 500, Max Rs. 1.5 lakh/year
Duration	Matures after 21 years or girl’s marriage after 18	Fixed 15-year maturity, extendable in 5-year blocks
Tax Benefits	Deduction under Section 80C	Deduction under Section 80C
Withdrawal Rules	Partial withdrawal for education after 18 or Class X	Partial withdrawals allowed from 7th year onward
Current Interest Rate	8%	7.1%
Interest Rates	Periodically revised by the government	Periodically revised by the government
Primary Focus	Girl child’s financial security	Long-term savings

Remember that interest rates, rules, and regulations may change over time, so it’s advisable to check with official sources or financial experts for the most up-to-date information before making any decisions.