Do you want to secure the future of your girl child? Well, today we are going to discuss a really good Government scheme specifically designed for a girl child which offers security for the future of child along with tax benefits and a higher rate of interest.
What is the Sukanya Samriddhi Yojana (SSY)?
Sukanya Samriddhi Yojana (Scheme) is a Small Savings Scheme of the Government of India meant only for girl children below 10 years of age. The Scheme was launched in January 2015 under the “Beti Bachao, Beti Padhao” initiative of GoI. Since then the scheme has undergone many changes and the latest guidelines were notified vide GoI notification G.S.R. 914(E). dated 12th December 2019.
The Account can be opened in any of the authorized bank branches or Post offices. The account is to be operated by the guardian until the child attains the age of 18 years.
Who is eligible to open an account under the Scheme?
- The account under Sukanya Samriddhi Scheme can be opened in the name of a girl child below the age of 10 years by any of the Guardians.
- Only one account can be opened in the name of a girl child. The accounts can be opened for a maximum of two girl children in a family.
- More than two accounts, under the Scheme, in a family can be opened in case of the birth of Twin Girls or triplets in the 1st or 2nd order of birth or both except the case where 1st order of birth resulted in two or more girl children.
- There is no minimum age requirement for opening of account under Sukanya Samriddhi Yojana.
How much money can I deposit?
- The account under Sukanya Samriddhi Scheme can be opened with a deposit of 250.00 Rupees (Rupees Two Hundred & fifty). Further, the depositor is required to deposit a minimum of 250.00 Rupees in the account during a financial year.
- The deposits can be made in the multiples of 50 Rupees (fifty) subject to a maximum of Rs. 1.50 lacs (One lac fifty thousand) during a Financial year.
- The deposits can be made for 15 years (Fifteen years) from the date of opening of the Sukanya Samriddhi Yojana account.
- In case the minimum amount of Rs. 250.00 is not deposited during a financial year, the account is considered to be “Under Default”. The account under default can be regularized by paying a penalty of Rs. 50.00 per year & by depositing the minimum required amount of Rs. 250.00 for the period of default.
How much interest shall I earn?
The interest on deposits under Sukanya Samriddhi Yojana is notified by the Government quarterly. The latest rate of interest for the period from 01/07/2020 to 30/09/2020 is 7.60%. The interest under the scheme is compounded annually.
Historic Sukanya Samriddhi Yojana Interest rate for the last 5 years
|Sr No||Period||Rate of Interest (%)|
|2||Q1, FY 2016-17||8.60|
|3||Q2, FY 2016-17||8.60|
|4||Q3, FY 2016-17||8.50|
|5||Q4, FY 2016-17||8.50|
|6||Q1, FY 2017-18||8.40|
|7||Q2, FY 2017-18||8.30|
|8||Q3, FY 2017-18||8.30|
|9||Q4, FY 2017-18||8.10|
|10||Q1, FY 2018-19||8.10|
|11||Q2, FY 2018-19||8.10|
|12||Q3, FY 2018-19||8.50|
|13||Q4, FY 2018-19||8.50|
|14||Q1, FY 2019-20||8.50|
|15||Q2, FY 2019-20||8.40|
|16||Q3, FY 2019-20||8.40|
|17||Q4, FY 2019-20||8.40|
|18||Q1, FY 2020-21||7.60|
|19||Q2, FY 2020-21||7.60|
When does the deposit mature?
- The withdrawal of 50% of the amount (at the end of the preceding financial year) is allowed for the education of girl children on the attainment of the age of 18 years or passing the tenth standard, whichever is earlier.
- The Sukanya Samriddhi Account matures after 21 years from the opening of the account.
- The closure is allowed before 21 years from the opening of the account in case of marriage of account holder on furnishing a declaration (duly signed by the account holder and attested by a notary on a Non Judicial stamp paper) that the girl will not be less than 18 years of age at the time of marriage. The applicant is required to submit proof of age with the application.
- The closure in case of marriage is allowed only during the month preceding the marriage or up to 3 months after the marriage.
Can I close the account prematurely?
Premature closure of Sukanya Samriddhi Account is allowed in the following instances:
- In case of unfortunate death of account holder. In this case, the applicable rate of interest under the scheme shall be paid till the date of death of the account holder and after that, the rate applicable on the post office saving account is paid till the closure of the account.
- On compassionate grounds to provide medical support in case of any life-threatening disease to the account holder or in case of death of guardian where the operation of the account is no longer possible for the account holder. The closure under this scenario is allowed only after completion of five years from the date of opening of the account.
What are the Benefits of the Scheme?
❖ High Rate of Interest: The Scheme provides one of the highest rates of interest offered to Small Saving Schemes.
❖ A low requirement of Deposits: The Sukanya Samriddhi Yojana account can be opened with a deposit of only Rs. 250.00 (Two Hundred fifty rupees). Further, the minimum deposit requirement during a financial year is only Rs. 250.00.
Further, the deposits are to be made only for 15 years while the account matures in 21 years from the date of opening of the account.
❖ Saving for Education and Marriage of Girl Child: The corpus under the Sukanya Samriddhi Scheme can be used for higher education and/or marriage of girl child.
❖ Tax Benefits: The deposits under the scheme are eligible for deduction under Section 80C of the Income Tax Act subject to a maximum of Rs. 1.50 lacs (Rupees One lac fifty thousand) during a financial year.
The interest on the deposit is tax-free which is not the case with bank deposits. The interest is compounded on annual basis.
❖ Easy Accessibility: The account can be opened in any of the authorized bank branches or Post officeswhich are located in all parts of the country and hence are easily accessible.
Considering the high rate of interest, tax benefits, low deposit requirements it is one of the best saving scheme and is highly recommended to secure the future of your girl child.
In this article, we have discussed the features of the Sukanya Samriddhi Yojana (SSY). Further for Fixed deposits for regular individuals you may refer detailed analysis of deposits of various banks at: