Recently in December 2023. Central Govt has increased the rate of interest for Sukanya Samriddhi scheme (also referred to as SSY) to 8.20% from December 2023, This will be effective from the last quarter of 2023-24 , Earlier the rate was 7.90%.
As a part of the government’s ‘Beti Bachao, Beti Padhao’ campaign, Sukanya Samriddhi Yojana is basically a social welfare scheme for the girl child and this scheme is very popular nowadays for the parents who wish to invest some corpus for their girl’s future both for higher education and marriage.
Salient Features of Sukanya Samriddhi Yojana (SSY) Account
Sukanya Samriddhi Yojana is a saving scheme backed by Government of India aimed at the betterment of girl child in India to provide an extra support to the parents. It is launched in the year of 2015 to help parents build a corpus for the higher education and other expenses like marriage of their girl child.
This scheme fully backed by the central govt. affirms the social security to the girl child and moreover the amount invested can be shown to save the income tax by the parents. The account can be easily opened at any branch of post office or any commercial bank branch. The rate of interest is revised by the govt. time to time.
As per data provided by the central govt.,1,42,73,910 new accounts opened under Sukanya Samriddhi Account (SSA) between 2018 and 2021.
Rate of Interest and Deposit Amount
As compared to the other investment options available at present, Sukanya Samriddhi Yojana (SSY) offers an attractive rate of interest of 8.20%, compounded annually. The government decides the interest rate of scheme and is revised every quarter.
Through regular deposits under this scheme, anyone can create a big corpus as the years pass by, which can later be used for meeting your girl child’s life goals, whether it be her higher education or marriage.
Under the scheme of Sukanya Samriddhi, one can invest a minimum amount of Rs.250 and a maximum of Rs. 1,50,000. You can deposit as many times as possible in a given financial year in multiples of Rs.250 upto Rs. 1,50,000.
If in any financial year, anyone misses to deposit the minimum amount of Rs.250, then the account will get deactivated which can be activated again with a penalty of Rs.100 only.
Lock in Period
Under Sukanya Samriddhi Yojana, the lock-in period is 21 years from the date of opening of the account. For example, if a girl-child opens Sukanya account at the age of 3 years, then she will get the maturity amount after 21 years, when her age will be 24 years.
Maximum Number of Accounts & Transfer of Accounts
Only one account can be opened for a girl child and in any family can open maximum of 2 accounts only.
The Sukanya Samriddhi account can be easily transferred from one bank to another or from one branch to another branch within the same bank, if the parent’s residential address has been changed from the previous address and he is having a valid proof of the same.
Tax Benefits Under Sukanya Samriddhi Yojana
The investment made under the SSY scheme is eligible for tax-exemption under the Section 80C of the Income Tax Act. The tax exemption is subject to a maximum amount of Rs.1.5 lakh in financial year.
The accrued interest is compounded annually and credited to the Sukanya account. The accumulated interest is also exempted from tax under section 80C of the Income Tax Act 1961.
The amount offered to the girl child on maturity is not taxable and is exempted from tax.
Eligibility Criteria
Eligibility for the girl-child :
- Only girl child can have the benefits of Sukanya Samriddhi Yojana scheme.
- The maximum age of the girl child should be 10 years and a grace period of 1 year is permitted.
Eligibility for the parent :
- Only biological parents or legal guardians of a girl child can open the account on behalf of the girl child.
- One parent or legal guardian can open maximum of two accounts for their girl child.
- In certain case of twins or triplets, the parent or legal guardian can open maximum of three accounts.
- Also, the account holder has to be an Indian citizen and resident of India at the time of account opening and has to remain so until maturity or closure of the Sukanya account.
Advantages/Benefits of Sukanya Samriddhi Yojana
- At present, The rate of interest of Sukanya Samriddhi scheme is 8.20% which is effective from January 1st, 2024. This is the best rate anyone can get at present compared to any other scheme.
- The investment under this scheme is eligible for deductions provided under section 80C of the Income Tax Act. You can avail of a deduction of maximum Rs.1,50,000.
- The compound interest that is accumulated in your deposit account is also exempt from tax.
- The withdrawal under this scheme is also tax-free. Thus, on maturity of the account, you can withdraw the amount without any tax-deduction.
Withdrawal Process of Sukanya Samriddhi Account
- Withdrawal on maturity : The Sukanya Samriddhi Account matures on completion of 21 years and after the period of 21 years from opening of the account, The maturity amount can be received and the account is settled and cloased.
- Partial Withdrawal (Upto 50%) : Partial withdrawal is allowed only after the account holder is 18 years of age for higher studies purpose only and a maximum 50% of the closing balance of previous financial year is allowed.
- Withdrawal before Maturity : There are certain conditions when you can have a premature withdrawal of the Sukanya account. On the situation of account holder’s death, the account is closed as soon as the authority in charge presents the death certificate and the balance amount along with the interest is paid to the guardian.
| Features | Details |
| Eligibility regarding age limit | Maximum age of the girl child should be 10 years or less |
| Rate of Interest | 8.20% Compounded Annually |
| Minimum Investment | Rs. 250 |
| Maximum Investment | Rs. 1,50,000 |
| Maturity period | 21 Years from the date of opening of account |
Procedure to Open a Sukanya Samriddhi Account
Sukanya Samriddhi account can be easily opened any any post office or any bank-branch, The steps to follow are as under:
- Step1 : The very first step is that , you have to visit your nearest bank-branch of post office, whichever you prefer according to your convenience.
- Step2 : Submit the properly filled form of the scheme along with the requisite KYC documents such as Aadhar card or the birth certificate of the girl child and one KYC document of the legal guardian/parent.
- Step3 : Deposit the account opening amount in form of cash, cheque or demand draft
(Minimum Rs.250, in multiples of Rs.250 & maximum upto Rs.1,50,000.) - Step4 : After opening of the Sukanya Samriddhi Account, you can get the passbook from the branch.
Sukanya samriddhi Scheme Calculator
Sukanya Samriddhi calculator will help you to determine the full returns as per the amount of investment and tenure.
Sukanya Samriddhi Yojana Calculator is attached here , With the help of this calculator you can calculate the maturity amount by just entering the yearly invested amount and age of the girl child.
Conclusion part and Wrap up
With this post, we can easily conclude that Sukanya Samriddhi Scheme is the best option available for a parent of a girl child if he is searching a good investment plan which can secure the future of the girl child and the invested amount can be shown for tax exemption also. At present with the Annual rate of interest of 8.20%, this is obviously the best plan to invest without any risk as the plan is fully backed by the central govt.
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