Sukanya Samriddhi Yojana is a government savings scheme created with the intention to benefit girl child under the initiative called “Beti Bachao – Beti Padhao”.
The parent or guardian of the girl child who is 10 years of age or younger can open an account under this scheme. This scheme carries a higher interest rate along with several tax benefits.
A parent or legal guardian can open a maximum of 2 accounts for 2 girl children. The account matures after 21 years of opening the account or in the event of the marriage of the girl child after she gains the age of 18 years. A premature withdraw of up to 50% of investment is allowed after the child gains the age of 18 years.
Interest rate- 8.5%
Duration of investment- 21 years
Minimum Investment: Rs 1,000 per annum
Maximum Investment: Rs 1.5 lakh per annum
Tax Deduction on Principal allowed under section 80C up to Rs 1.5 lakh
Interest received is not taxable
Interest Rate Quaterly (2019-2020)
Jan to March 2019 – 8.5
April to June 2019 – 8.5
January to March 2020 – 8.4
April to June 2020 – 7.6
What is the eligibility criteria to open Account?
I. The account can be opened by a parent or legal guardian of the girl child
II. The girl child must be below the age of 10 year
III. Only one account is allowed for a girl child.
IV. A family can open only 2 SSY scheme account.
How to invest in Sukanya Samriddhi Yojana (SSY)?
Investors can apply for Sukanya Samriddhi Scheme through post offices or participating in public and private banks. Investors need to submit a few documents and follow the process listed below:
Sukanya Yojana Details:
I. Birth certificate of the girl child
II. Photo ID of applicant parent or legal guardian
III. Address proof of applicant parent or legal guardian
IV. Other KYC proofs such as PAN, Voter ID.
Process of application– [Sukanya Samriddhi Yojana]
I. Download the application form from either RBI website, Indian Post website, participating public sector and private bank’s official website
II. Fill up the form with key details of the girl child and a parent or legal guardian. Following are the key mandatory fields to be filled in Sukanya Samriddhi Yojana, scheme form
III. Primary Account Holder- Name of Girl Child
IV. Joint Holder- Name of A parent or legal guardian
V. Initial deposit amount
VI. Cheque/DD Number and Date for the initial deposit
VII. Date of Birth of girl child along with Birth Certificate details
VIII. Identity of Parent or legal guardian such as Driving License, Aadhaar, etc.
IX. Present and Permanent Address (as per ID document of the parent or legal guardian)
X. Details of other KYC proofs such as PAN, Voter ID card, etc
Sukanya Yojana interest rates
The interest rate on the Sukanya Samriddhi Yojana is fixed by the government and reviewed every quarter. The Sukanya Samriddhi Yojana interest rate for July to September 2019 is 8.4%
Calculate you Investment Returns on Sukanya Samriddhi Yojana by Using SSY Calculator
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Tax Benefits of Sukanya Samriddhi Yojana (SSY)
The principal amount deposited, interest earned during the entire tenure, and maturity benefits are tax-exempt. The principal amount is deductible under section 80C up to Rs 1.5 lakh.
Key Pointers related to Sukanya Samriddhi Yojana scheme
I. The account matures after 21 years of opening the account or in the event of the marriage of the girl child after she gains the age of 18 years
II. A premature withdraw of up to 50% of investment is allowed after the child gains the age of 18 years even if she is not getting married.
III. Duration of investment- 21 years
IV. Minimum Investment: Rs 1,000 per annum
V. Maximum Investment: Rs 1.5 lakh per annum
VI. 6. On Maturity of the account, the balance which is principal and interest earned is paid to the girl child on submitting an application along with proof of citizenship, residency, and identity.