Sukanya Samriddhi Yojana (ssy) Overview, Benefits, Eligibility Criteria

The government-sponsored Sukanya Samriddhi Yojana is a program that encourages small savings for girls. It can be opened by the parents of a girl under the age of 10 and is a part of the Beti Bachao, Beti Padhao Yojana. Accounts for the SSY can be opened at specific banks or post offices. The Sukanya Samriddhi Yojana Account is open for 21 years, or until a girl marries after turning 18 years old. The SSY program offers several tax advantages in addition to a higher interest rate. For more information on Sukanya Samriddhi Yojana, read the entire article.

The government releases SSY Interest Rates every three months. The interest rates have been set at 8% p.a. for Q2 (July-September) of FY 2023–24.

Note: Aadhaar and PAN cards are now mandatory for SSY scheme

Benefits of Sukanya Samriddhi Yojana 

Sukanya Samriddhi Yojana, which was made available as a component of the Beti Bachao, Beti Padhao Yojana initiative, offers investors a variety of advantages. The following are some of the main Sukanya Samriddhi Yojana advantages:

  1. High Interest Rate: When compared to other government-backed tax saving plans like PPF, SSY offers a higher fixed rate of return (currently 8% annually for Q2 FY (2023–24).
  2. Guaranteed Returns- Returns are 100% guaranteed since SSY is a government-backed scheme. 
  3. Flexible Investment: A deposit can be made with a minimum of Rs. 250 and a maximum of Rs. 1.5 lakh per year. This guarantees that investors of various financial backgrounds can participate in the SSY program.
  4. Tax Benefits: Up to Rs. 1.5 lakh in annual tax deductions are offered by SSY under Section 80C.
  5. Benefit of Compounding: Sukanya Samriddhi Yojana (SSY), which offers the benefit of annual compounding, is a fantastic long-term investment strategy. Therefore, even modest investments will generate higher returns over time.
  6. Convenient Transfer: If the parent or guardian who is operating the Sukanya Samriddhi Account moves, the SSY account may be freely transferred from one region of the nation to another (bank/post office).

Sukanya Samriddhi Yojana Eligibility

Certain requirements are necessary to be eligible for the scheme such as:

  1. An SSY account can only be opened by a girl child’s parents or legal guardians.
  2. The girl’s age has to be under 10 when the account is opened.
  3. Only one account can be opened in a girl child’s name.
  4. A family is only permitted to have two SSY accounts, one for each girl child.
  5. Sukanya Samriddhi Account may be opened for more than two girls in certain unique circumstances such as: A third account may be opened if a girl child is born before twin or triplet girls or if triplets are the first to arrive. A third SSY account cannot be opened if a girl child is born following the birth of twin or triplet girls.

Tax Implications: SSY investments are classified as EEE (Exempt, Exempt, Exempt) investments from a taxation standpoint. This indicates that the invested principal, interest, and maturity amount are all tax-free. The tax deduction benefit on the principal amount invested is up to Rs 1.5 Lakh per year under Section 80C of the Income Tax Act, 1961, according to Sukanya Samriddhi Yojana’s current tax regulations.

Deposit Limit: The Sukanya Samriddhi Account has a minimum annual contribution of Rs. 250 and a maximum annual contribution of Rs. 1.5 lakh. For up to 15 years after the account is opened, you must invest at least the required amount each year. After that, the account will keep earning interest until it matures.

Maturity Period: The Post Office Sukanya Samriddhi Yojana is available until the girl child is 21 years old or until she marries after turning 18 years old. However, only 15 years’ worth of contributions are required. After that, even if no additional deposits are made, the SSY account will continue to accrue interest until it matures.

Premature Closure: Only a girl child can complete a premature closure once she reaches the age of 18 in order to pay for her wedding. However, in certain circumstances, the account may be closed and the corresponding amount may be withdrawn, such as: 

  • Closure of SSY Account due to untimely death of the Accountholder. 
  • Closure of SSY Account due to inability to continue the account.

How to apply for SSY

Through the designated branches of participating public and private banks or your local post office, you can make an investment in the Sukanya Samriddhi Yojana program. Along with the required form and the required initial deposit by check or draft, you will also need to submit your KYC documents, such as your passport and Aadhaar card. The Sukanya Samriddhi Yojana (SSY) Application Form, which can be obtained by going to a nearby post office or participating public or private sector bank, must be filled out by investors. The SSY New Account Application Form is also available for download from the following places:

  • The Reserve Bank of India Website
  • The India Post Website
  • Individual websites of public sector banks (SBI, PNB, BoB, etc.)
  • The websites of participating private sector banks (e.g. ICICI Bank, Axis Bank and HDFC Bank) 


Important Information to fill in the SSY form

Applicants must include certain pertinent information on the girl child in whose name the Beti Bachao, Beti Padhao Yojana investment will be made on the SSY Application Form. It is also necessary to provide information about the parent or guardian who will open the account and make deposits on her behalf. The key fields included in the SSY Application Form are as follows:

  •  Name of the Girl Child
  •  Name of Parent/Guardian opening the account
  • Initial deposit amount
  • Cheque/DD Number and Date (used for an initial deposit)
  • Date of Birth of the girl child
  • Birth Certificate details of primary account holder (Certificate number, date of issue, etc.)
  • ID Details of Parent/Guardian (Driving License, Aadhaar, etc.)
  • Present and Permanent Address (as per ID document of parent/guardian)
  • Details of any other KYC Documents (PAN, Voter ID card, etc.)

Enjoy easy transfers of SSY Accounts (state to state)

The SSY Account’s ease of transfer from one region of India to another is one of its main advantages. According to current regulations, it is simple to transfer this tax-saving deposit account for a girl child from one India Post Office or designated bank branch to another. 

You must complete and deliver the transfer request form to the Post Master of the India Post Office where your account is currently located in order to start the transfer of your SSY account from a post office. If you need to move a deposit from one designated bank branch to another, similar transfer forms are offered both online and offline.

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