Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana was launched by the Indian government in the year 2014 as the part of ‘Beti Bachao Beti Padhao’ plan/campaign. Sukanya Samriddhi plan is especially for Girl child which is the small deposit scheme.

Sukanya Samriddhi Yojana gives the income tax benefit under Section 80C of the income tax Act, 1961. The returns are made tax free under this scheme.

Sukanya Samriddhi account details such as Interest Rates, Eligibility, Benefits, Tax Rules, Download Application Form, etc., are discussed below

Sukanya Samriddhi Yojana Interest Rate

Sukanya Samriddhi Yojana is for girls child in India and the interest rate is 8.5% from Apr to Jun (2019 – 2020) FY for Q1. The Sukanya Samriddhi Yojana interest rate by the Indian government is fixed and reviewed once in every quarter.

The historical interest rate of Sukanya Samriddhi Yojana is as below in the table

Sukanya Samriddhi Yojana Scheme Eligibility

Below criteria should be fulfilled to be eligible to open an SSY account

  • This account can be open only by the parents or guardians who are having a girl child.
  • The age of the girl child should be less than 10 Years at the time of opening the account with the minimum deposit of Rs. 250 which is reduced from the Rs. 1000
  • Many SSY accounts cannot be opened for a single girl

As per the rules, only 2 accounts are allowed to open for a single family i.e. one account for each girl. The deposit amount can range from Rs 250 Min to Rs 1.5 Lakh Max in running financial year. The SSY account can be opened in any of the post office or in any commercial bank which is legally authorized.

How does the SSY Account Operate?

The account remains active & operative for 21 years from the date of opening or till the girl gets married after she attains the age of 18 years.

To meet the requirement of her higher education expenses, partial withdrawal of 50 percent of the balance amount is allowed after the girl turns 18 years of age.

The account can be permanently closed only after the girl attains 18 years of age for the purpose of marriage expenses.

How to Invest in the SSY Scheme?

You can invest in the SSY scheme through any post office nearby you or any authorized public and private banks. It is mandatory to submit the KYC documents like Passport, Aadhaar Card, etc. along with the application form and initial deposit by cheque/draft.

How to download SSY Application Form?

The Sukanya Samriddhi Yojana Application Form can be downloaded from the below link click here or from private sector banks (e.g. Axis Bank, ICICI Bank & HDFC Bank), public sector banks (SBI, PNB, BoB, etc.) or can be obtained from the nearest post office of authorized banks.

Benefits of Investing in Sukanya Samriddhi Yojana

  • Tax Benefit under the section 80C up to 1.5 Lakh
  • Minimum deposit amount as low as Rs 250 up to 1.5 Lakh depending upon the choice
  • Tax Free returns under EEE (exempt-exempt-exempt)
  • The higher interest rate on the investment made as high as 8.5% per annum Q1 FY 2019-20 which is still high compared to PPF
  • Advantage of Power of Compounding can be benefited from this long term investment plan
  • SSY account is transferable from one part of the country to another part of the country

Sukanya Samriddhi Account Online Balance Check

  • If the account is opened in any public/private sector banks and if the account is linked to net banking then the account balance can be checked just by logging into the net banking
  • If the account is opened in post office then you have to visit any of the nearest and get the passbook updated to check the balance

Tax Rules of Sukanya Samriddhi Yojana

  • The interest earned on the maturity amount is tax-free under EEE (exempt-exempt-exempt)
  • The tax deduction benefit on the principal amount which is invested up to Rs 1.5 lakh per annum under 80C Section.

How to Transfer of SSY Account?

Sukanya Samriddhi Yojana Account can be easily transferred from one part of the country to another part by one post office to another and one bank to another.

To transfer the account you need to fill and the Sukanya Samriddhi Account Transfer Request Form to the post office where the account is presently located.


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