All about Sukanya Samriddhi Yojana – Eligibility, Benefits & Interest
In this post, we are going to discuss on Sukanya Samriddhi Yojana (also known as Sukanya Samriddhi Account Scheme).
Here, we’ll get to know about Sukanya Samriddhi Account (SSA) details, who can open SSY account, deposit limit, rate of interest for Sukanya Samriddhi account, maturity and closure of the account, tax benefit on deposits and interest earned on deposits, etc.,
What is Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojna is one of the best and popular small deposit schemes exclusively for a girl child. This scheme is launched by the Government of India, as a part of the “Beti Bachao- Beti Padhao” initiative.
Sukanya Samriddhi scheme is designed exclusively for a girl child. It aims to deal with the major problem of girls in India such as marriage and education. Thus, promoting the future of girl child & education is the motive behind this scheme.
This small deposit scheme encourages every parent of a girl child to give good education to their girl child. Sukanya scheme enable every parent to create a fund for the future education and marriage expenses for their girl child.
Features and Benefits – Sukanya Samriddhi Account
- A small deposit scheme exclusively meant for a girl child
- Account can be opened by one of the guardian (legal or natural) in the name of a girl child below the age of 10 years.
- Only one account can be opened in the name of a girl child.
- Account under this Scheme can be opened for a maximum of two girl children in one family
- Account can be opened in any nearest Post offices and in authorised banks.
- Minimum deposit of Rs. 250 in a financial year is mandatory to keep the account active
- Maximum deposit (investment) allowed in a financial year is Rs. 150,000 (one lakh fifty thousand rupees)
- Withdrawal shall be allowed for the purpose of higher education of the Account holder to meet education expenses.
- The account can be transferred anywhere in India from one Post office/Bank to another.
- The account shall mature on completion of a period of 21 years from the date of opening of account.
- The account can be prematurely closed in case of marriage of girl child after her attaining the age of 18 years.
- Deposit qualifies for deduction under Section 80C of the Income Tax Act
- Interest earned in the account is free from Income Tax under Section 10 of the Income tax Act
Income Tax Benefits of Sukanya Samriddhi Yojana
From the income tax point of view – SSY comes under the “Exempt, Exempt, Exempt” category. Any Deposits (contribution) made during the financial year qualifies for deduction up to Rs.150,000 under section 80C of the Income Tax act.
The interest earned on the deposits and the proceeds received on maturity is also exempted from tax.
Opening of account
The account under this scheme can be opened by either of the parents in the name of a girl child below the age of 10 years as on the date of opening of the account.
Application form (Form-1)for opening an account shall be submitted along with the birth certificate of the girl child, KYC documents of the guardian such as Id proof, Address proof, Photo etc.,
Only one account per girl child is allowed to be opened. The benefit of this scheme is restricted to a maximum of two girl children in one family.
Documents required for Sukanya Samriddhi Account (SSA)
SSY account can be opened with the minimum document and information. What all information and documents required to open the account are as follows:
1. Birth Certificate of Girl Child
2. SSA Application form
3. Id proof of guardian
4. Address proof of guardian (Aadhaar etc)
5. contact number and email id
Deposit Limit of Sukanya Samriddhi Account (SSA)
Minimum two hundred and fifty rupees (Rs. 250) and maximum one lakh fifty thousand rupees (1.5 Lakh) can be deposited in a financial year in one SSA account.
- Minimum deposit: Rs. 250
- Maximum deposit: Rs. 1.5 Lakh
Operation of Sukanya account
Sukanya account shall be operated by the guardian (legal or natural as the case may be) till the account holder attains the age of majority i.e., eighteen years.
And once the account holder (girl child) attains the age of 18 years, she will herself operate the account by submitting necessary documents.
Maturity of account
Sukanya Samriddhi account matures on the completion of 21 years (twenty-one years) from the date of its opening.
Closure of account
Sukanya account stands close on maturity. And it matures on the completion of 21 years from the date of opening of the account.
An account can also be closed before the completion of 21 years, where the marriage of the account holder takes place before the completion of such a period of 21 years. In that case, the operation of the account shall not be permitted beyond the date of her marriage.
In this case, the account holder will make an application for closure of account citing the marriage as reason, along with a declaration duly signed on non-judicial stamp paper attested by the notary supported with proof of age confirming that the applicant will not be less than 18 years of age on the date of marriage.
Provided that no such closure shall be allowed before one month from the date of the intended marriage or after three months from the date of marriage.
Interest on SSA Deposit
SSY account rate of interest is decided by the government of India and is determined on a quarterly basis. At present, the interest rate was reduced from 8.4% to 7.6% and it is compounded on a yearly basis. In this scheme government always ensure and try to fix lucrative interest rate. So that, parent of the girl child gets a good return on the investment made under this scheme.
Sukanya Samriddhi Yojana interest rate 2021
Current interest rate for SSA for the year 2021 is 7.6%. As per the latest circular, Sukanya Samriddhi Yojana (SSY) will continue to earn interest @7.6% p.a.
| Period | Interest Rate |
| 1st April 2020 to 30th Sep 2021 | 7.6% |
FAQ on Sukanya Samriddhi Account (SSA)
- What is the age limit for the Sukanya Samriddhi Account (SSA)?
The age of a girl child should be less than 10 at the time of opening of account.
2. What are the documents required for opening Sukanya Samriddhi Account (SSA)?
- Application in Form-1
- Birth Certificate*of the girl child
- KYC documents of guardian (such as Id and address proof etc.,)
3. What is the minimum contribution limit to Sukanya Samriddhi Account (SSA)?
A minimum contribution of Rs.250 (earlier it was Rs.1000) can be done in one financial year.
4. What is the maximum contribution limit to Sukanya Samriddhi Account?
Maximum contribution of Rs.1,50,000 can be done in one financial year.
5. How many SSY Account can be opened?
Only one SSY account can be opened and operated in the name of the girl child. You can’t open two accounts for one girl child.