An initiative under the Beti Bachao, Beti Padhao Yojana, Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme. Under the scheme, the parents of a girl child below the age of 10 years can open an account at designated banks or post offices. An SSY account remains functional till the girl reaches 21 years of age or marries after the age of 18. A girl child can operate her own account after the age of 18 years.
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The investment into an SSY account makes for a great long-term investment scheme as the amount gets compounded annually. So, even small investments provide good returns over the long term. Interest Rates for SSY accounts are declared by the government quarterly and for the July-September quarter of FY 2022-23, the interest rate has been set at 7.6% per annum. Besides offering a guaranteed high-interest rate, SSY also provides tax deduction benefits under Section 80C up to Rs 1.5 lakh annually.
To ensure that people with different financial standing can invest in the scheme, an individual can make a minimum deposit of Rs 250 per year in an SSY account. The maximum deposit limit is fixed at Rs 1.5 lakh in a year. An individual is mandated to invest at least the minimum amount of Rs 250 every year. If an SSY account holder is unable to make even the minimum deposit of Rs 250 in a year, the person can get the account revived by paying Rs 50 extra for the default year.
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Before the maturity period, a withdrawal can only be made once the girl is above 18 years of age or has passed Class 10. The withdrawal is allowed to meet expenses relating to higher education such as fees or other such charges. Only 50 percent of the balance available at the end of the previous financial year is allowed before the maturity period.
How to open the Sukanya Samriddhi Yojana account physically?
Go to your nearby post office or public/private sector bank participating in the scheme.
Ask for the Sukanya Samriddhi Yojana (SSY) Application Form.
After filling the form, submit it with KYC documents like Aadhaar, Passport, driving licence, and Voter ID card, among others.
How to open Sukanya Samriddhi Yojana digitally
Download the SSY account opening application form from any of the following sources -- Reserve Bank of India website, India Post website, individual websites of public sector banks (SBI, PNB, BoB, etc.), or the websites of participating private sector banks (e.g. ICICI Bank, Axis Bank and HDFC Bank). The form will be the same regardless of the source.
Here are the details that you are required to furnish in the SSY account opening 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 an 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 Licence, Aadhaar, etc.)
* Present and permanent address (as per ID document of parent/guardian)
* Details of any other KYC Documents (PAN, Voter ID card, etc.)
Things to remember
The SSY account gets closed if the girl child becomes an NRI or loses her Indian citizenship.
You can't take a loan against SSY savings.
There is no tax on SSY account interest.
The SSY account is allowed to be closed prematurely on compassionate grounds like terminal illness, the unexpected demise of the primary account holder among others. However, the decision regarding the same is taken on a case-to-case basis.
(Edited by : Sudarsanan Mani)
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