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Sukanya Samriddhi Yojana

Sukanya Samriddhi Account, abbreviated as SSA, is a savings scheme that is especially designed for the welfare of the girl child, as evident from the name. It was introduced by the Ministry of Finance and launched by the Hon’ble Prime Minister of India, Shri Narendra Modi, on 22nd January 2015, as a part of the 'Beti Bachao Beti Padhao' campaign.

The objective of Sukanya Samriddhi Yojana is to ensure the financial independence of women by encouraging them to invest in a savings scheme that would enable them to fulfil their long-term life goals and dreams like higher education, marriage, etc. and ensure financial stability. As per the FY 2018-19 AY 2019-20, the rate of interest is 8.5%, one of the best for savings schemes of this nature. This further emphasises on the benefit of investing in Sukanya Samriddhi Yojana savings scheme. Not just that, it also offers tax benefits under Section 80C of the Income Tax Act, 1961.

The Government of India has made the Sukanya Samriddhi Yojana easily accessible to people by enabling them to open an account at any post office. One can also open a Sukanya Samriddhi Yojana account at any one of its extensive list of 22 authorized banks, as discussed later in the article. The initial deposit can range between Rs. 250 and Rs. 1,50,000 annually, as per the financial objectives of the accountholder. The subsequent deposits can be made in multiples of Rs.100.

While the accountholder has to pay towards Sukanya Samriddhi Yojana savings scheme for 14 years, the investment reaches its maturity term after 21 years since the date it was issued. The government enables the flexibility of the savings scheme account to be transferred from one bank or post office to another bank or post office within India.

Features of Sukanya Samriddhi Yojana

Let take a look at the salient features of Sukanya Samriddhi Yojana savings scheme:

  • Sukanya Samriddhi Yojana saving scheme authorizes parents of the girl child or legal guardians, in the absence of parents, to open an account.

  • Parents are eligible for holding two accounts simultaneously under the Sukanya Samriddhi Yojana saving scheme for two girl child, while twins resulting in three girl child allows parents to hold a maximum of three accounts.

  • The minimum annual deposit that has to be made towards Sukanya Samriddhi Yojana is Rs. 250 with the maximum annual limit being Rs. 1,50,000. Earlier, the minimum limit was Rs. 1,000 and has been reduced to make the scheme accessible to the masses.

  • The existing interest rate, as per FY 2018-19 is 8.5%. It varies quarterly. This is among the highest for such savings schemes.

  • Accountholders can avail tax benefits under Section 80C of the Income Tax Act, 1961, on deposits made towards Sukanya Samriddhi Yojana.

  • The account can be closed prematurely on the untimely death of the accountholder.

  • At the end of the year, a payment of Rs. 50 has to be made over the minimum annual deposit towards the Sukanya Samriddhi Yojana savings scheme as a confirmation for reviving the account.

  • The minimum amount of Rs. 250 has to be paid every year to prevent the account from getting deactivated.

  • Deposits towards Sukanya Samriddhi Yojana savings scheme can be made in the form of cheque, demand draft or cash.

  • The accountholder of the Sukanya Samriddhi Yojana scheme can withdraw up to 50% of the accumulated amount after reaching 18 years of age.

  • Sukanya Samriddhi Yojana accounts mature after 21 years since the issuance of the account or on the day of her marriage, whichever is earlier.

  • After maturation of the scheme, the accountholder will be paid the accrued interest.

Benefits of Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana savings scheme offers parents or legal guardians the opportunity to financial plan the future of their girl child well in advance to secure her future and help her in reaching her ambitions. Some of the benefits that make Sukanya Samriddhi Yojana an efficient saving scheme for financially securing the future of the girl child are:

High rate of interest

The existing interest rate of 8.5%, for FY 2018-19 is one of the highest among the savings schemes of this kind. The interest rate is revised every quarter in a year. However, the rate remains the highest as compared to other savings schemes.

Tax benefits

Apart from assuring the financial security of the accountholder, Sukanya Samriddhi Yojana offers tax benefits under Section 80C of the Income Tax Act, 1961. The maximum limit of tax exemption that can be availed is Rs. 1,50,000, which is the limit applicable for all other investments that are exempted from taxes under this section of the Income Tax Act, 1961. The accrued interest throughout the tenure of the Sukanya Samriddhi Yojana savings scheme as well as the maturity amount is exempted from taxes.

Maturity benefits

On the maturity of a Sukanya Samriddhi Yojana savings scheme, the account balance that the girl child will be eligible for is the sum total of the principal amounts consistently deposited in the account and the accrued interest on this principal amount. This amount is directly payable to the accountholder, that is, the girl child for whom the account was opened. The aim of the Sukanya Yojana savings scheme is to empower the girl child in India by enabling her to achieve her ambitions and ensuring her financial independence.

Premature /partial Withdrawal

The Sukanya Samriddhi Account reaches its maturity when the accountholder reaches 21 years of age, though deposits can be made into the account for 14 years from the date of its issuance. The account ceases to exist when the girl child reaches 21 years or gets married, whichever event occurs earlier. You need to make sure that she is at least 18 years of age on the date of her marriage to be able to withdraw the balance amount from her Sukanya Samriddhi Account. However, a partial withdrawal of a maximum of 50% of the account balance can be withdrawn only for the purpose of financing her higher education.

Sukanya Samriddhi Yojana (SSY) Interest Rates

Sukanya Samriddhi Yojana’srate of interest for January to March 2019 (Q4, FY 2018-19), is 8.5%. This rate of interest on the Sukanya Samriddhi Yojana is ascertained by the government and is revised each quarter. Here is a list of the historic interest rates offered by this scheme for the girl child:

MonthsInterest Rate (%)
January to March 20198.5
October to December 20188.5
July to September 20188.1
April to June 20188.1
January to March 20188.1
October to December 20178.3
July to September 20178.3
April to June 20178.4

Eligibility of Sukanya Samriddhi Yojana

ParticularEligibility
Entry ageFrom birth
Maximum entry age10 years
Minimum limit for deposits per yearINR 1000
Maximum limit for deposit per yearINR 1.5 lakh
Withdrawal age18 years
Maturity duration of account21 years
Mode of paymentCheque, cash, DD or online

Sukanya Samriddhi Scheme Eligibility for the Girl child (Accountholder)

For the girl child, the eligibility criteria that needs to be met are:

  • Only girl children can avail the benefits of Sukanya Samriddhi Yojana saving scheme.
  • To be eligible for opening a Sukanya Samriddhi Account, the maximum age of a girl child cannot be more than 10 years. However, a grace period of 1 year is allowed. For instance, a 10 years old girl can still hold a Sukanya Samriddhi Account, provided it is opened within a year of her turning 10 years of age.
  • A proof of age of the accountholder has to be submitted at the time of applying for the savings scheme.

Sukanya Samriddhi Yojana Eligibility for Parents

The eligibility criteria for parents or legal guardians to be able to open an account for their girl child are:

  • Only biological parents and legal guardians for a girl child can open a Sukanya Samriddhi Account on behalf of their child.
  • One parent or legal guardian can open a maximum of two accounts for their girl children.
  • As discussed above, a parent or legal guardian can open one Sukanya Samriddhi Accounts for one girl child, with the maximum number of accounts that can be opened being two. In case of twins and triplets, one parent or legal guardian is eligible for opening up to three accounts.

How to open Sukanya samriddhi Account

Opening a Sukanya Samridhi account is extremely simple. All you need to do is visit your nearby post office or any of the designated branches of participating private or public sector banks. To open the account, it is important to submit necessary KYC documents such as Passport, Aadhaar Card, PAN Card, etc. Along with these, it is also necessary to fill the request form and make an initial deposit by cheque/draft into the account.

How to open Sukanya samriddhi Account Online

To open an account online, you can download the SSY New Account Application Form. Sukanya Samriddhi Yojana’s form for application form can be downloaded from the following sources such as:

  • The India Post Website
  • The Reserve Bank of India Website
  • Public sector bank websites (SBI, PNB, BoB, etc.)
  • Participating private sector bank websites (e.g. ICICI Bank, Axis Bank and HDFC Bank)

Even though the sources of downloading might differ, the fields in the form mostly remain the same, regardless of source. The applicant needs to give some key data in the SSY Application form regarding the girl child who shall benefit from the investment under the Beti Bachao, Beti Padhao Yojana. Moreover, certain details of the parent/guardian who shall open the account or make the deposits on the girl child’s behalf are also required. Here is the list of key fields that feature in the SSY Application Form:

  • Name of Girl Child (Primary Account Holder)
  • Name of Parent/Guardian opening the account (Joint Holder)
  • Initial deposit amount
  • Cheque/DD Number and Date (used for initial deposit)
  • Date of Birth of 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.)

Once these details have been furnished, the form is required to be signed and submitted to the account opening authority, along with copies of the applicable documents.

Sukanya Samriddhi Account Online Balance Check

In case you have a Sukanya account with your participating bank branch, checking the online balance in Sukanya Samriddhi Account can be done easily through internet banking or mobile banking. However, you would need to make sure that this account is linked with your current net banking account. This is to ensure easy access to Sukanya account records. This option of checking your balance online for Sukanya Samridhi Yojana accounts that are held in participating banks is available in addition to the passbook update option by visiting the bank branch.

However, so far, there is no way to check the balance in the SSY account online, in case you have your account at any India Post Office. In such a scenario, you will have to visit the post office branch and get your passbook updated so to check your balance.

Sukanya Samriddhi Calculator

The maturity benefit you can expect to receive on the maturity of the Sukanya Samriddhi visiting the official website of the savings scheme. Follow this process to calculate the maturity benefit:

  • Visit the official website of Sukanya Samriddhi Account Yojana and then select the ‘Calculator’ option, or simply click here to be taken to the same page.
  • Enter the necessary details – Age of the girl child, deposit amount and date of deposit.
  • Click on the ‘Calculate’ button.
  • The calculator will automatically generate and reflect the results for the principal amount, maturity amount and interest amount that you are expected to receive after maturity, as per the existing rate of interest for Sukanya Samriddhi Yojana.

Alternately, you can also manually calculate the principal amount, maturity amount and interest amount that you are expect to receive on the maturation of the Sukanya Samriddhi scheme, as per the current interest rate. The monthly and annual amount that you have to deposit can be calculated accordingly. All you need to do is prepare an excel sheet with seven separate columns, as a part of the

Sukanya Samriddhi calculator, and the follow the below process:

  • Column 1 Age – Mention the existing age of your girl child.
  • Column 2 Age of the account – Enter the number of years the Sukanya Samriddhi Account has been active, i.e., the number of years since the account has been opened by you. Deposits to a Sukanya Samriddhi Account can be made till a maximum of 14 years.
  • Column 3 Date of deposit – Mention the date when you have contributed towards the scheme.
  • Column 4 Deposit amount – Enter the amount deposited towards Sukanya Samriddhi Account.
  • Column 5 Accumulated principal amount at the end of the year – This column will mention the accrued principal amount accumulated in the Sukanya Samriddhi Account at the end of the annual year, based on the regular monthly deposits made towards it. You will now have the amount available in the account at the end of a financial year. This amount is the result of adding the total principal amount accumulated at the end of the financial year and the amount to be deposited in the account for the next year. Adding the columns D3 +G2 and so on will give the final result.
  • Column 6 Total annual interest – Interest rates of Sukanya Samriddhi Yojana is updated on every quarter of a financial year. Keep a track of the existing interest rate and mention it in this column.
  • Column 7 Total amount at year end – The final amount that will get accumulated in your Sukanya Samriddhi account at the end of every financial year. The result can be derived by using this formula on the excel sheet - Principal Amount + Yearly Interest – E2 + F2.

Benefits of Sukanya Samriddhi Account Calculator

Let’s discuss the benefits of Sukanya Samriddhi Yojana calculator below:

  • It enables you to calculate the maturity value accurately after the maturation of the savings scheme.
  • It enables you to calculate the amount that you would like to deposit in the Sukanya Samriddhi Account annually to reach the maturity value that you expect to receive at the end of the term.
  • Based on the amount you want to deposit under this scheme annually, you can calculate the amount that you have to save every month. You can even set up the calculator to calculate the maturity value based on monthly or yearly investments.
  • The calculator helps you in avoiding the mistakes that often occur during manual calculations.
  • You will get the maturity value in a matter of seconds from altering the annual amount that you would like to invest towards the Sukanya Samiriddhi Yojana.

Authorised Banks to Open Sukanya Samriddhi Account

Following are the banks that have been authorized by the Government of India to open Sukanya Samriddhi Accounts.

State Bank of India (SBI)State Bank of Mysore (SBM)State Bank of Hyderabad (SBH)State Bank of Travancore (SBT)
State Bank of Bikaner & Jaipur (SBBJ)State Bank of Patiala (SBP)Vijaya BankUnited Bank of India
Union Bank of IndiaUCO BankSyndicate BankPunjab national bank (PNB)
Punjab & Sind Bank (PSB)Oriental Bank of Commerce (OBC)Indian Overseas Bank (IOB)Indian Bank
IDBI BankICICI BankDena BankCorporation Bank
Central Bank of India (CBI)Canara BankBank of Maharashtra (BOM)Bank of India (BOI)
Bank of Baroda (BOB)Axis BankAndhra BankAllahabad Bank

Other details of Sukanya Samriddhi Yojana

  • No interest will be credited after the maturity period of 21 years if fund is not withdrawn

  • Multiples of 100 can be deposited in the account with a minimum of INR 1000 per year

  • Need to pay in this scheme for 14 years after opening the account, which means if the account was opened on X age of the girl then the payment needs to be made X age of the girl + 14 years

  • The interest rate since its launch is as follows: From April 1, 2014: 9.1% From April 1, 2015: 9.2% From April 1, 2016 -September 30, 2016: 8.6% From October 1, 2016-December 31, 2016: 8.5% From July 1, 2017- December 31, 2017: 8.3%

  • A passbook will be issued after the account is opened bearing the date of birth of the girl child, date of opening of the account, account number, name and address of the account holder and the amount deposited.

  • If original passbook is lost then duplicate passbook will be issued for a fee of INR 50 rupees.

  • Non-resident Indians cannot open a Sukanya Samriddhi Yojna

  • Premature closure of an SSY account can be put forward in the event of death of the account holder or on extreme compassionate grounds such as medical support in life-threatening diseases.

  • Maturity amount will be given directly to the girl child

  • Sukanya Samriddhi Yojna scheme is also available for adopted girl child

Review of Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojna savings scheme is a great initiative by the government of India for the empowerment of girl child. It helps the parents and guardians to systematically save and build a corpus for growth and development of the girl’s bright future. The best thing about the scheme is it has been kept affordable for the masses and offers one of the best returns in small deposit schemes in the market. So, don’t miss out on this lucrative scheme, and give your girl child the best future she deserves, as a woman plays a key role in shaping the future of the society and the country.

FAQs on Sukanya Samriddhi Yojana

Can grandparents open Sukanya Samriddhi Account?

Other than parents, only legal guardians can open Sukanya Samriddhi Accounts on behalf of their girl child. If a grandparent is the legal guardian of a girl child, he/she can open an account for the girl child.

Can I open Sukanya Samriddhi Account online?

Yes, you can avail the online procedure for opening a Sukanya Samriddhi Account by following these simple steps:

  • Downloading the online form from the bank website.
  • Fill up the form with required information related to the name and date of birth of the girl child for whom the Sukanya Samriddhi Account is being opened, name of her parent (name of father/mother), Proof of Address and Proof of Identity of her parent/legal guardian, name of the parent/legal guardian, along with the KYC documents.
  • Submit it at any post office or any authorized bank that is located in India.

Can I open Sukanya Samriddhi Account online in ICICI Bank?

Yes, ICICI bank is one of the banks that have been authorized by the Government of India to open Sukanya Samriddhi Accounts. However, you can open it at any ICICI Bank branch provided it is located in India.

Can I open Sukanya Samriddhi Account online in SBI?

Yes, SBI Bank is one of the banks authorized by the Government of India to open Sukanya Samriddhi Accounts.

Can I open two Sukanya Samriddhi Accounts?

Yes, one parent or legal guardian can open a maximum of two Sukanya Samriddhi Accounts for two girl child. One parent or legal guardian can open a maximum of three accounts for twin or triplet girl children.

Can I transfer online to Sukanya Samriddhi Account?

Yes, deposits into the Sukanya Samriddhi Account can be done online by giving your bank standing instructions to deduct it from your bank account at a pre-decided date, or by opting for the net banking option through automatic credit to Sukanya Samriddhi Yojana.

Can Sukanya Samriddhi Account be opened for NRI?

No, the Government of India does not make NRIs eligible for opening a Sukanya Samriddhi Account Yojana for their daughters till date.

Can Sukanya Samriddhi account be transferred from one bank to other?

Yes, you can transfer a Sukanya Samriddhi Account from one authorized bank to any other authorized bank within India.

Can Sukanya Samriddhi Account be transferred from post office to bank?

Yes, Sukanya Samriddhi Account can be transferred from a post office to any authorized bank located in India.

Can we pay online for Sukanya Samriddhi Account?

Payments towards Sukanya Samriddhi Accounts can be made online. The other options are - cheques, DD and cash.

Can we transfer money to Sukanya Samriddhi Account online?

Payments towards Sukanya Samriddhi Accounts can be made through online transfers. The other options are in the form of cheques, DD and cash.

How do I open an SSY account?

You can open an account by visiting any post office or any Indian bank that is authorized to open Sukanya Samriddhi Accounts.

How much amount can be deposited in Sukanya Samriddhi Yojana?

The minimum annual amount to be deposited into a Sukanya Samriddhi Account is Rs. 250. While the maximum amount is up to Rs. 1,50,000.

Is interest on Sukanya Samriddhi Account taxable?

Sukanya Samriddhi Accounts attracts tax exemptions of up to Rs. 1,50,000 annually under Section 80C of the Income Tax Act, 1961.

Is Sukanya Samriddhi Account tax free?

The Sukanya Samriddhi Yojana accountholder, that is, the girl child for whom the account was opened is eligible for tax benefits of up to Rs. 1,50,000 annually under Section 80C of the Income Tax Act, 1961.

What documents are required for Sukanya Samriddhi Account?

The necessary documents that need to be submitted at the time of opening a Sukanya Samriddhi Account are: • Birth Certificate of the girl child for whom the account is being opened • Proof of Identity of the Parent or Legal Guardian of the girl child • Proof of Address of the Parent or Legal Guardian

What is minimum deposit in Sukanya Samriddhi Account?

The minimum deposit for Sukanya Samriddhi Yojana is currently Rs. 250. It has been reduced from the previous minimum amount of Rs. 1,000.

What is the age limit for Sukanya Samriddhi Yojana?

The minimum age limit for the girl child to hold a Sukanya Samriddhi Account is 10 years, followed by a grace period of 1 year after she turns 10 years. This implies that she will be eligible for open a Sukanya Samriddhi Account till the maximum age of 11 years.

What is the date of launch of Sukanya Samriddhi Yojana Accounts?

The date of launch of Sukanya Samriddhi Yojana savings scheme is 22nd January, 2015.

What is the interest rate for Sukanya Samriddhi Account?

According to the FY 2018-19 AY 2019-20, the rate of interest is 8.5%. The rate of interest varies every quarter in a financial year.

Which is better - PPF or Sukanya Samriddhi Yojana?

Let’s discuss the differences between the two based on its features and benefits:

  • For a PPF account, there is no limit to extending the tenure, for a term of 5 years each time, provided you choose to do so within 12 months from the date of maturity. Though the tenure of Sukanya Samriddhi Yojana saving scheme can also be extended, it is applicable on a one-time extension of up to 7 years over fixed tenure of 14 years.
  • The accountholder, that is, the girl child for whom a Sukanya Samriddhi Yojana account is meant for, is eligible for opting for a partial withdrawal of up to 50% only on turning 18 years of age, that too, solely for the purpose of higher education. Partial premature withdrawals can be availed every year, but only after completing 7 years from the date of issuance, subjects to specific terms and conditions. Complete withdrawal is possible only after the maturity of the Sukanya Samriddhi Yojana savings scheme. Partial withdrawals of up to 50% against your PPF account can be availed only after at least 5 years of its date of issuance. However, the permissible limit is comparatively higher when you are invested between 7 years to 12 years.
  • The minimum age limit for a resident Indian for opening a PPF account is 18 years, while there is no maximum age limit. Besides, it can be availed by any Indian citizen. On the contrary, Sukanya Samriddhi Yojana savings scheme is accompanied by a maximum age limit of 10 years, with a grace period of 1 year, and is meant only for a girl child.
  • Nominations can be availed by PPF accountholders, which is not true for Sukanya Samriddhi Yojana Accounts.
  • The minimum annual deposit of Rs. 500 is necessary in the case of PPF accounts, while Rs. 250 is the minimal deposit amount applicable for Sukanya Samriddhi Yojana Accounts.

Who can withdraw money from Sukanya Samriddhi Account?

Only the accountholder, that is, the girl child for whom the account had been opened is eligible for withdrawing the money.

Sukanya Samriddhi Yojana Vs.Child Plans?

Sukanya Samriddhi Yojana is a savings scheme that can be availed by a natural/legal guardian on behalf of a girl child. The maximum number of accounts that can be opened is for two girl children (three if girl twins are born in second birth or the first birth itself results in girl triplets). The maximum period up to which deposits can be made is 15 years from the date of opening of the account. The tenure of the deposit is 21 years from the date of opening of the account.

A child plan of a mutual fund can be taken in the name of a girl or boy child. Additionally, there are no limits on the number of accounts that can be opened for the child. They are designed keeping in mind the future needs of the child. Child plans carry higher risk, but also have the potential to offer better returns, giving it an extra edge when it comes to helping beat inflation. They can be opened in the name of the child up to the age of 18 years (and sometimes 21 years).

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