What is Sukanaya Samriddhi Yojana | Sukanya Samriddhi Yojana Benefits


Sukanaya Samriddhi Yojana

Beti Bachao, Beti Padhao is a campaign of the Government of India that aims to generate awareness and improve the efficiency of welfare services intended for girls in India. Keeping the objective of welfare of girl child in focus, Government of India started a new small saving scheme namely Sukanya Samriddhi Account (SSA) from Dec 2014. It is also known as Sukanya Samriddhi Yojana (SSY).

sukanya samriddhi yojana

Best Investment Scheme for Long Term

Sukanya Samriddhi Account (SSA) is one of the best schemes for investment considering that it is backed by govt of India, tax benefits and offers attractive interest rate.

Salient features of Sukanya Samriddhi Yojana (SSY)

  1. Govt backed small saving scheme for securing the future of a girl child
  2. Account can be opened for girl child below the age of 10 years
  3. Minimum investment of Rs. 250/- in one financial year
  4. Maximum investment of Rs. 1.50 lakhs in one financial year
  5. Tax Benefits on amount deposited under 80C of Income Tax Act, 1961
  6. Maturity amount is tax free
  7. Interest will be credited annually at the end of financial year
  8. Amount can be deposited for till completion of 14 years from the date of opening of the account or the girl child completing the age of 21 years, whichever is earlier
  9. Account shall mature on completion of 21 years from the date of opening of the account or marriage of girl child whichever is earlier
  10. Partial withdrawal permitted after completion of 18 years of age subject to certain conditions

Eligibility criteria for opening Sukanya Samriddhi Account (SSA) is as under:

  1. Guardian in the name of girl child below the age of 10 years
  2. Only two accounts are allowed per family i.e., one for each girl child
  3. In case of twins / triplets, more than 2 accounts can be opened subject to submission of authorised doctors’ certificate to this effect
  4. Only one account can be opened in India either in Post Office or in any bank in the name of one girl child

Sukanya Samriddhi Account (SSA) Interest Rate

  1. Interest rate is 7.60 % p.a. compounded annually
  2. Interest shall be calculated for the calendar month on the lowest balance in the account between the close of the fifth day and the end of the month
  3. Interest rate is subject to change at quarterly intervals like all other govt backed small saving schemes

How interest is calculated under Sukanya Samriddhi Yojana (SSY)

The interest will be calculated for the calendar month on the lowest balance in the account between the close of the fifth day and the end of the month. Let’s us understand the same by below mentioned example:

Opening balance

25000/-

Date

Amount deposited

Balance brought forward

Balance

03.03.2021

5,000/-

25,000/-

30,000/-

05.03.2021

1,000/-

30,000/-

31,000/-

06.03.2021

15,000/-

31,000/-

46,000/-

18.03.2021

 500/-

46,000/-

46,500/-

31.03.2021

 500/-

46,500/-

47,000/-

In the above example, interest will be calculated for that month on Rs 31,000/-

Sukanya Samriddhi Account (SSA) Term of Maturity

Account gets matured when the girl completes the age of 21 yrs or marriage whichever is earlier but not less than 18 yrs of age

Sukanya Samriddhi Account (SSA) Term of Deposit

Deposits in the account can be made till the completion of 14 years from the date of opening of the account or the girl child completing the age of 21 years, whichever is earlier. For simplification, please refer the example furnished in the below placed table:

Table View in Landscape Mode only

Completed Age of girl child at the time of opening of account

Account will mature when the girl completes the age of *

Amount can be deposited

till the completion of 14 years from the date of opening of the account

Total no of yearly instalments can be deposited

Actual based on age

Amount can be deposited till the girl completes the age of

A

B

C

D** = B - A

(B) or

(E = A + C)

Whichever is lower

1 yr

21 yrs

14 yrs (fixed)

15 yrs

15 yrs

3 yrs

21 yrs

14 yrs (fixed)

15 yrs

17 yrs

7 yrs

21 yrs

14 yrs (fixed)

15 yrs

21 yrs

9 yrs

21 yrs

14 yrs (fixed)

13 yrs

21 yrs

10 yrs

Account opening not allowed as the girl child has completed 10 yrs of age

* Assumed girl child remains unmarried till 21 yrs

** Maximum term permitted – Completion of 14 yrs from the date of opening of account

   Account opened on - 01.10.2020

   Completion of 14 yrs - 30.09.2034

   Hence, one can even deposit 15th instalment for the period from 01.04.2034 to 30.09.2034

Sukanya Samriddhi Account (SSA) Operation of account

  1. Account will be operated by the natural or legal guardian of a girl child till the girl child in whose name the account has been opened, completes the age of 10 years
  2. On completing the age of 10 years, the account holder i.e., the girl child herself can operate the account. However, deposits in the account can be made by the guardian or any other person or authority

Withdrawal from Sukanya Samriddhi Account (SSA)

For higher studies or marriage related expenses of the account holder, partial withdrawal of amount deposited is permitted after the girl child completes the age of 18 years subject to fulfilment of certain conditions which are as under:

  1. Account holder can withdraw up to 50% of balance available at the end of preceding financial year
  2. Amount may be withdrawn in one lump sum or in instalments, not exceeding one per year, for a maximum of five years, subject to the ceiling specified and subject to actual requirement of fee/other charges

Premature Closure of Sukanya Samriddhi Account (SSA)

Premature closure of Sukanya Samriddhi Account (SSA) can be done subject to fulfilment of the below mentioned conditions:

  1. In the event of death of the account holder, the account can be closed immediately on production of death certificate issued by the competent authority, and the balance at the credit of the account shall be paid along with interest till the month preceding the month of premature closure of the account, to the parents / guardian of the account holder
  2. In cases of undue hardship to the account holder or extreme compassionate grounds such as medical support in life threatening diseases, death of the parents / guardian etc then the account holder may be permitted to close the account prematurely

Advantages of Sukanya Samriddhi Yojana (SSY) are as under:

  1. Easy to open
  2. Account can be opened at Post Office or Bank
  3. Govt Backed Deposit Scheme for girl child
  4. Higher Interest Rate
  5. Minimum deposit amount is Rs 250/- in a financial year
  6. Maximum deposit amount of Rs 1.50 lakhs in a financial year
  7. Tax Benefits on amount deposited under 80C of Income Tax Act, 1961
  8. Maturity amount is Tax Free
  9. Partial withdrawal is allowed subject to certain conditions
  10. Premature closure is permitted after 5 years from the date of opening of account subject to certain conditions
  11. Facility to deposit lumpsum or in instalments during the financial year
  12. Best deposit scheme to earn higher interest rate for 21 years by opening account at the time of birth

Disadvantages of Sukanya Samriddhi Yojana (SSY) are as under:

  1. Lock-in period is 21 years which is very high
  2. Interest rate is not fixed and subject to change every quarter
  3. Scheme allows maximum 2 accounts per family
  4. Scheme is only for Girl child
  5. Compounding is at yearly intervals

Pros & Cons of Sukanya Samriddhi Yojana (SSY) – Analysis

  1. Higher lock-in period helps in saving big amount. Moreover, purpose of this scheme is welfare of girl child. Otherwise, one may tend to break the deposit for any short-term need.
  2. Interest rate is not fixed but still higher in comparison to various other schemes
  3. Scheme allows maximum 2 accounts per family which is good as one can have better standard of living with small family and will be able save money for their daughter’s future
  4. This scheme is not for anyone who is looking to deposit for short term needs.
  5. Compounding is at yearly intervals but still with higher interest rate and tax benefits associated with the scheme, one can prefer to deposit in Sukanya Samriddhi Yojana (SSY)

Zero Risk High Returns Best deposit scheme

Sukanya Samriddhi Account (SSA) is one of the best investment schemes which offers highest returns with zero risk in comparison to many other investment options. It is one of the best investment schemes for long term.

Table View in Landscape Mode only

Parameter

Actual

Comment

Age of the Girl Child at the time of opening of account

0 yrs

Assumed that account opened just after birth of the girl child

Amount deposited in a Financial year

Rs 1.00 lakh

Maximum limit – Rs 1.50 lakhs

No of years for which amount deposited

15 yrs

Maximum term permitted – 14 yrs from the date of opening of account.  Account opened on - 01.10.2020

Completion of 14 yrs - 30.09.2034

Hence, one can even deposit 15th instalment for the period from 01.04.2034 to 30.09.2034.

Total amount deposited

Rs 14.00 lakhs

@ Rs 1.00 lakh for 14 yrs

Interest Rate

7.60 % p.a.

Compounding

Annually

Maturity Term

21 yrs

Maturity Amount

Rs 43,95,381/-

Principle – Rs 14.00 lakhs

Interest -   Rs 29.95 lakhs


Someone who opens account at the time of birth of the girl child and deposits Rs 1.50 lakhs annually for 21 years is expected to get Rs 43.95 lakhs on maturity considering that interest rate remains the same.

Frequently Asked Questions

 Q –What is the Sukanya Samriddhi Yojana (SSY) scheme?

 A –Under The SSY scheme was launched by the Central government under its `Beti Bachao, Beti Padhao’ campaign launched a special scheme for the welfare of girl child i.e. Sukanya Samriddhi Yojana.

 Q –What is the eligibility for investing under Sukanya Samridhi Yojna (SSY) scheme?

 A –The account can be opened by the natural or legal guardian in the name of a girl child from the birth of the girl child till she attains the age of 10 years. Maximum 2 accounts can be opened in a family.

 Q –Where we can open Sukanya Samriddhi Account (SSA)?

 A –You can open account at any post office or Bank.

 Q –Can we open more than 1 Sukanya Samriddhi Account (SSA)?

 A –In case you have 1 daughter only than only 1 account can be opened. Upto 2 daughters you can open 1 account in each daughter’s name.

 Q –What is the tax benefit on Sukanya Samriddhi Yojana (SSY)?

 A –Amount deposited under Sukanya Samriddhi Yojana (SSY) is eligible for benefit under Section 80C of Income Tax Act.

 Q –​​​​​​​Can we withdraw money from Sukanya Samriddhi account?

 A –The tenure of the SSY scheme lasts until the girl beneficiary reaches the age of 21 or her marriage, whichever is earlier. Premature withdrawal or closure can be done if the girl is to be married at the age of 18 or above, if the girl child passes away, death of guardian or medical emergencies.

 Q –What is the age limit for Sukanya Samriddhi Yojana?

 A –The girl child will have to be under 10 years of age.

 Q –Can Loan facility be availed in Sukanya Samridhi Yojna (SSY) account?

 A –No, loan facility cannot be availed In SSY account.

 Q –Is there any tax on maturity amount under Sukanya Samriddhi Yojana (SSY)?

 A –Maturity amount under Sukanya Samriddhi Yojana (SSY) is Tax free.

Highest Interest Rate on Savings Account

Upto Rs 1 lakh

BankInterest
Utkarsh Small Finance Bank5.00 % p.a.
RBL4.50 % p.a.
ESAF Small Finance Bank4.00 % p.a.
Suryoday Small Finance Bank4.00 % p.a.
Indusind4.00 % p.a.