Sukanya Samriddhi Yojana: Check Investment Process, Eligibility and More

Launched by Prime Minister Narendra Modi in January 2015 as part of the “Beti Bachao, Beti Padhao” initiative, the Sukanya Samriddhi Yojana (SSY) aims to encourage parents to build long-term savings for their girl child. In this article, we will delve deeper into the Sukanya Samriddhi Yojana (SSY), its benefits, eligibility criteria, and the process of investing in the scheme.

What is the Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana is a government-backed small savings scheme designed exclusively for the financial security of girl children. Parents or legal guardians can open an SSY account in the name of their daughter and continue investing regularly until the account matures. This government-backed savings scheme offers attractive interest rates, tax benefits, and guaranteed returns, making it one of the most popular investment options for girl children in India.

Sukanya Samriddhi Yojana is managed by the Ministry of Finance, and accounts can be opened at any post office and authorised banks across the country.

Key Features of Sukanya Samriddhi Yojana

• Interest Rate: SSY usually provides a higher rate of interest than any traditional FD or savings account, which can help parents to create financial security.
• Tax Benefits: The investments made under SSY are qualified for the tax deductions under section 80C of the Income Tax Act, up to ₹1.5 lakh annually.
• Long-Term Savings: This government-backed scheme encourages parents to invest responsibly for the crucial future expenses, such as higher education, marriage, etc.
• Partial Withdrawal Facility: The government has allowed the withdrawal of up to 50% after the girl child turns 18 for higher education purposes.
• Minimum & Maximum Investment: The minimum deposit limit was reduced from ₹1,000 to ₹250 in 2018. Parents can make a minimum deposit of ₹250 and a maximum of ₹1.5 lakh in a financial year. It is important to note that the deposits can be made for a period of up to 15 years from the account opening date.

Eligibility Criteria for Sukanya Samriddhi Yojana

The following conditions must be met to invest in the Sukanya Samriddhi Yojana:

• The girl child must be below 10 years of age at the time of account opening.
• Only one account can be opened per girl child. However, there is an exception for more accounts in case of twins or triplets.
• A family can open a maximum of two SSY accounts for two daughters.
• Parents or legal guardians can operate the account until the child reaches the age of 18.

What Documents are Required to Invest in SSY?

As per the government guideline, the following documents are required for investing in the Sukanya Samriddhi Yojana:

• Sukanya Samriddhi Account Opening Form
• Birth certificate of a girl child
• Identity proof (as per RBI KYC guidelines)
• Residence proof (as per RBI KYC guidelines)

How to Invest in Sukanya Samridhi Yojana?

Parents can follow the steps below to start investing in the Sukanya Samriddhi Yojana for their girl child:

Step 1: Open an SSY account at any post office or authorised public or private bank.

Step 2: Fill the Sukanya Samriddhi Yojana application form by providing details such as:

• Girl Child Name and Date of Birth
• Parent/ Guardian Details
• Address

Step 3: Submit required documents

Step 4: Make initial deposits through cash, cheque, demand draft (DD), and online transfer.

Step 5: Receive your passbook containing account details.

Sukanya Samriddhi Yojana Online Investment Process

As per guidelines, you can not open an SSY account online. However, you are allowed to manage it by setting up automatic payments once the account is opened.

Rules for Premature Withdrawal: Sukanya Samriddhi Yojana

The government has allowed premature withdrawal under the conditions mentioned below:

• Marriage: The Sukanya Samriddhi Yojana can be closed if the beneficiary is getting married after 18 years of age. The account holder or guardian must inform the authorities at least one month before or up to three months after the date of marriage.
• Education: Partial withdrawal is allowed if the beneficiary secures admission in any institution for higher education. For this, a valid admission proof has to be submitted at the time of withdrawal.
• Account Holder’s Death: If the account holder passes away, the account can be closed immediately by submitting an application and the official death certificate. The guardian or nominee will receive the account balance along with the interest calculated up to the date of death. Additional interest applicable to a Post Office Savings Account may also be paid until the account is formally closed.

FAQs

Who can open a Sukanya Samriddhi Yojana account?

Parents or legal guardians of a girl child below 10 years of age can open an SSY account in her name.

What is the minimum amount required to invest in SSY?

The minimum annual investment required is ₹250 to keep the account active.

What is the maximum investment allowed in a year?

You can invest up to ₹1.5 lakh per financial year in a Sukanya Samriddhi account.

Is the interest earned on SSY taxable?

No, the interest earned and maturity amount are completely tax-free under current tax rules.

Can I open an SSY account online?

Most banks require account opening at the branch initially, but future deposits can often be made online.

When can a partial withdrawal be made?

Up to 50% of the balance can be withdrawn after the girl child turns 18 for higher education expenses.

What happens if the minimum deposit is not made?

The account becomes inactive, but it can be revived later by paying the penalty and minimum deposit amount.

Can the SSY account be transferred to another city or bank?

Yes, the account can be transferred anywhere in India between authorised banks and post offices.