Sukanya Samriddhi Yojana - Benefits, Application, Documents Required and Eligibility Criteria

On 22nd January 2015, the honourable Prime Minister of India, Narendra Modi, and Ministry of Women and Child Welfare, Government of India, had launched a scheme for girl children called Sukanya Samriddhi Yojana (SSY). The SSY scheme aims to encourage the parents to save money for future education and marriage of the girl child. The SSY scheme is a part of the ‘Beti Bachao, Beti Padhao’ campaign and was launched in Panipat, Haryana.

Under this scheme, the parents or the legal guardian have to open a Sukanya Samriddhi Account in the post office or bank on behalf of the girl child. SSY scheme is the best way to secure your girl’s future. To know more about Sukanya Samriddhi Yojana, read the article till the end.

Benefits of SSY Scheme

The benefits of Sukanya Samriddhi Yojana are as follows:

• As per section 80C of the Income Tax Act, there are different benefits under the SSY scheme.
• Sukanya Samriddhi account is transferrable. 
• Compared to other schemes, SSY provides a higher rate of interest.
• The girl child can operate her SSY account only when she turns 10 years.
• The minimum amount that has to be deposited in the SSY account is ₹250, which is comparatively very low.
• Few documents are required for opening an SSY account.
• SSY scheme is beneficial for both girl children and parents.
• At the time of maturity of the SSY account, the girl child will get the funds.

SSY Account Application

Applicants can open SSY account in the post office or banks across the country. The parents or the legal guardians have to open the account on behalf of the girl child and have to submit the required documents like birth certificate etc. The parents or legal guardians can open only one account for each girl child. 

For opening an SSY account, the depositor has to follow the steps mentioned below:

1. At first, visit the official website of the Ministry of Women and Child Welfare, i.e., www.nari.nic.in.

2. The home page will appear where you will see the ‘Application Form’ option, click on it.

3. Then, the application form pdf file will open.

4. Download the application form and take a print out of it.

5. Then fill-up the form with the required details such as your name, date of birth, parents name, address, identification proof of you and your parents etc.

6. After filling the application form, submit it to post office or bank for opening an SSY account.

The applicant can also get the application form from their respective banks. For opening an SSY account, the depositor has to pay an initial amount of ₹1000. The depositor can pay anything between ₹250/- to ₹1,50,000/- after the initial payment, but the minimum amount that has to be deposited cannot be less than ₹250, and the maximum amount cannot exceed ₹1,50,000. The depositors can deposit till the completion of 15 years in the SSY account. If the depositor misses the payment of the subscription amount or doesn’t maintain the SSY account annually, then the depositor has to pay a penalty of ₹50 per year along with the subscription amount. The depositors can deposit money by both cash and cheque or demand draft. 

SSY Account Interest

The government decides the interest rate on SSY scheme quarterly. The depositors have to pay on an annual basis until the completion of 15 years. The depositor can also go for monthly interest. The present interest rate for session 2020-2021 is 7.6%.

Interest Rate Revision:

Please note that the interest rate has been reduced to 7.6% in the financial year 2020-2021.

Minimum and Maximum Investment

From 2014 to 2018, the minimum investment was ₹1000 but it has been reduced to ₹250 since 2018 till present year. The maximum investment is ₹1,50,000.

Documents Required for SSY Scheme

For opening an SSY account, the parents or the legal guardians of the girl child have to submit the following documents in the bank or post office:

1. Application form

2. Identification proof of parents or legal guardians such as –

• PAN Card
• Aadhar Card
• Passport
• Driving license
• Voter ID
• Matriculation certificate
• Others (issued by the government of India)

3. Residential proof of parents or legal guardian such as – 

• PAN Card
• Aadhar Card
• Passport
• Voter ID
• Ration Card
• Telephone bill
• Electricity bill
• Others (issued by the government of India)
• Birth certificate of the girl child

SSY Scheme Eligibility Criteria

The following conditions have to be fulfilled for opening an SSY account:

• Only girl child are eligible for SSY scheme.
• Girl child under 10 years are eligible to apply for SSY scheme. Their parents have to open an account on behalf of them.
• A girl child who are born on or after 2nd December 2003 are given some age limit relaxation.

SSY Pass Book

When you open an SSY account, you will be given a passbook. The passbook consists of your name, date of birth, address, account number, amount deposited and the opening date of the account. The passbook is needed at the time of deposit.

SSY Account Maturity and Withdrawal:

After the completion of 21 years of the account, the SSY account will be matured; the account will be closed once it’s mature. The account holder can withdraw the amount only after completing the age of 18 years for marriage or higher education. The account could be closed before maturity if the account holder died. Death certificate of the account holder has to be shown to close the SSY account. The savings will be transferred to the parents or legal guardian’s account.

SSY Scheme Tax Benefit

After the maturity of SSY account, the amount that the account holder will receive will be exempted from tax so the amount will be utilised efficiently in the development of the girl. The parents or legal guardian or the girl can claim for tax exemption. As per section 80C of the Income Tax Act, all the money deposited in the SSY account is benefited to the tax deduction. There will be no deduction of tax upto₹1.5 lakh. Interest is credited on the SSY account every year, and there is no tax deduction for the accumulated interest.

Authorised Banks for SSY Scheme:

The applicant can open SSY account in any of the following banks authorised by Reserve Bank of India (RBI) are mentioned below:

• Allahabad Bank
• Axis Bank 
• Andhra Bank 
• Bank of Maharashtra(BOM)
• Bank of India (BOI)
• Bank of Baroda (BOB) 
• Corporation Bank
• Central Bank of India (CBI)
• Canara Bank
• Dena Bank
• Indian Overseas Bank (IOB)
• Indian Bank 
• IDBI Bank 
• ICICI Bank
• Oriental Bank of Commerce (OBC)
• Punjab National Bank (PNB)
• Punjab & Sind Bank (PSB)
• State Bank of India (SBI)
• State Bank of Mysore (SBM)
• Syndicate Bank
• State Bank of Bikaner & Jaipur (SBBJ)
• State Bank of Travancore (SBT)
• State Bank of Patiala (SBP)
• State Bank of Hyderabad (SBH)
• Union Bank of India
• UCO Bank
• United Bank of India 
• Vijaya Bank

Transfer of SSY Account

SSY account can be easily transferred from post office to bank and vice versa, from one bank to another and anywhere in India. The residential proof of parents or legal guardians can also be changed.

Frequently Asked Questions

Q. What is the SSY scheme?

SSY scheme is saving scheme for a girl child, for their future education and marriage.

Q. For how many years we need to pay for Sukanya Samriddhi Yojana?

14 years.

Q. Can parents withdraw money from SSY account?

Yes, the parents can withdraw the funds partially from the SSY account only after the girl completes the age of 18 years.

Q. Which is better Sukanya Samriddhi Yojana or LIC?

LIC is better than Sukanya Samriddhi Yojana.

Q. What is the full form of SSY?

SSY stands for Sukanya Samriddhi Yojana.

Q. Who can withdraw money from the SSY account?

The account holder can withdraw cash from the SSY account.

Q. Can I invest more than ₹1.5 lakh in SSY account?

No, you can invest more than 1.5 lakh in the SSY account as 1.5 lakh is the maximum limit.

Q. Is SSY scheme safe?

Yes, SSY scheme is a safe investment option.

Q. Can I transfer SSY account from post office to bank?

Yes, you can transfer the SSY account from post office to bank and vice versa.

Q. Is Sukanya Samriddhi Yojana tax-free?

Yes, Sukanya Samriddhi Yojana is exempted from tax.

Q. How many SSY accounts can I open?

One SSY account can be created for each girl child.

Q. What is the maturity period of SSY account?

The maturity period for SSY account is 21 years.

Q. Is Sukanya Samriddhi Yojana for boy child?

No, Sukanya Samriddhi Yojana is only for the girl child.

Q. Can SSY account open online?

No, one cannot open SSY account online.

Q. Can we take a loan against Sukanya Samriddhi Yojana?

No.

Q. Can I deposit online in SSY account?

Yes, you can deposit money online in SSY account.

Q. Where can I open SSY account?

SSY account can be open in the post office or bank.

Q. Can we transfer SSY account from one bank to another?

Yes, one can transfer SSY account from one bank to another.

Q. Can grandparents open an SSY account?

Parents or legal guardians can open SSY account.

Q. When was Sukanya Samriddhi Scheme launched?

Sukanya Samriddhi Scheme was launched on 22nd January 2015.