A Complete Guide on Sukanya Samriddhi Yojana and How can you Apply for an Account

Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana (SSY) is an initiative by the Government of India to encourage people to save and invest money to provide a safe and secure future for their girl child. It is a part of “Beti Bachao Beti Padhao” campaign, which is gaining popularity in India like wildfire. However, there are several aspects of this ideology, which still become hazy for those who are willing to open an account in favour of their girl child.

What is the Agenda of this Scheme?

The SSY account is designated only for the girl child, who is a citizen of India. The primary motive behind the Sukanya Samriddhi Yojana is to encourage people to save more than usual for their girl child, so they are not forced to quit their higher studies just because of financial issues. There are lots of detailed information available about Sukanya Samriddhi Yojana in Hindi and English language on Government of India portal.

Is there any Age Limit for this Scheme?

Yes, there is a specific age limit designated for this scheme. The minimum age required for opening this account is 0 years while the maximum age designated is 10 years.

Who can Start an Account under SSY and operate it?

Only the biological parents or legal guardians of the girl child are allowed to open this account in favor of their girl child. A girl child cannot herself apply for the opening of this account. However, she can operate her account only when she turns 18 years old, while parents or legal guardians are allowed to handle this account till whenever they want to.

What is the Limit of Amount that can be Deposited in the SSY Account?

There are both minimum and maximum deposit allowed for this account. In any given financial year, one can deposit a maximum amount of INR 150,000, while the minimum deposit is INR 100.

Interest on deposits made

Any deposit which is made in the Sukanya Samriddhi Yojana Account is eligible to get the interest rate on a yearly/quarterly basis. The interest paid is either flexible or floating. Each fiscal year, the interest rate is being announced by the government for this account.

Tax benefits for the SSY Account 

The parents or guardian of the girl child gets the benefit of the tax on opening the SSY account. This benefit is given just for the sake of encouraging more people to open this account. Any amount which is deposited under this scheme gets tax exemption under section 80C of the Income Tax Act, 1961. Even there is no tax over the rate of interest earned under this scheme. At the time of sum maturity, the tax will be charged only when the tax exempted amount exceeds under the section 80C.

Maturity period

An account under this scheme is liable to get mature only after 21 years from the date on which the account was opened initially.

What is the Maximum Tenure for investment?

The SSY account will remain open for the next 21 years from the date of opening. The minimum limit is for 14 years for which you are bound to invest in the same. Thereafter, if you don’t want to keep investing, then also the account will remain open for the next 7 years and you will keep earning a compound interest over the same amount deposited.

Can the Parents or Girl Child Withdraw the money from the Account in the Pre-Mature Stage?

One can withdraw 50% of the total deposited amount. Even this withdrawn is possible only when the girl attains the age of 18 years and the only purpose allowed for this withdrawal is financial support required for the girl’s higher education. The amount can also be withdrawn in the case of a serious medical condition of the girl child.

Who will receive all the Amount after the Account gets matured?

The girl child is the sole holder of the account and she will have the primary authority to receive the amount deposited in the SSY account.

Are NRIs allowed to participate?

NRIs cannot avail this scheme as per the mandate regulated by the RBI that NRIs cannot invest in the small savings schemes in India. You can only avail this benefit only if you hold this account and later become an NRI.

Documents required while opening SSY Account

The government only ask for the three basic documents that are needed to be submitted to the bank in order to open an account under the Sukanya Samriddhi Scheme. However, participating banks may even ask for additional documents as per the requirements in order to apply taxation rules properly. The three basic documents that are mandatory to be submitted are:

  1. The birth certificate of the girl child for whom the account will be opened.
  2. The ID proof of the parents or the legal guardian. It may be the Aadhar Card, Voter ID Card, PAN Card or Passport.
  3. The Address proof of the parents or the legal guardian. It can be the electricity bill or the ration card.

Which banks allow opening of Sukanya Samriddhi Account?

The government of India has authorized a total of 28 authorized banks, which are allowed to open an account under the SSY scheme. Here is the complete list of all of the banks that can be approached:

Alphabetical order Bank Name

A

  • Andhra Bank
  • Axis Bank
  • Allahabad Bank

B

  • Bank of India
  • Bank of Maharashtra
  • Bank of Baroda

C

  • Corporation Bank
  • Central Bank of India
  • Canara Bank

D

  • Dena Bank

I

  • ICICI Bank
  • Indian Bank
  • Indian Overseas Bank
  • IDBI Bank

O

  • Oriental Bank of Commerce

P

  • Punjab National Bank
  • Punjab & Sind Bank

S

  • State Bank of India
  • State Bank of Mysore
  • State Bank of Hyderabad
  • State Bank of Travancore
  • State Bank of Bikaner & Jaipur
  • State Bank of Patiala
  • Syndicate Bank

U

  • UCO Bank
  • United Bank of India
  • Union Bank of India

V

  • Vijaya Bank