Sukanya Samriddhi Yojana (SSY) is a small deposit scheme for the girl child launched as a part of the 'Beti Bachao Beti Padhao' campaign. It also provides income-tax with the benefit under section 80 C of the Income Tax Act,1961. Even the returns are tax-free in the scheme.
A
Sukanya Samriddhi Account can be opened any time after the birth of a girl till
she turns 10, with a minimum deposit of Rs 250 (Earlier it was Rs 1,000). In
subsequent years, a minimum of Rs 250 and a maximum of Rs 1.5 lakh can be
deposited during the ongoing financial year. The account can be opened in any
post office or authorised branches of commercial banks. It will remain
operative for 21 years from the date of its opening or till the marriage of the
girl after she turns 18.
To
meet the requirement of her higher education expenses, partial withdrawal of 50
per cent of the balance is allowed after she turns 18.
How
much can be deposited in the account?
The account can be opened with an initial deposit of Rs 250and thereafter, any
amount in multiple of Rs 100 can be deposited, subject to the condition that a
minimum of Rs 250 will be deposited in a financial year, but the total money
deposited in an account on a single occasion or on multiple occasions will not
exceed Rs 1,50,000 in a financial year.
What
is the mode of deposit?
The
deposit in the account can be made in cash or by cheque or demand draft and an
endorsement on the back of such an instrument has to be made and signed by the
depositor, indicating the name of the account holder and the account number in
which the deposit is to be credited.
How
is the interest rate on deposits calculated?
The
government fixes interest rates on a quarterly basis based on the G-sec yields.
The interest rate spread that the SSY enjoys over the G-sec rate of comparable
maturity is 75 basis points.
Eligibility
for SSY Account
The following are the key eligibility criteria for opening an SSY Account as part of the Beti Bachao, Beti Padhao Yojana:
- Sukanya Samriddhi Account can be opened only in the name of the girl child by her parents or legal guardians
- The girl child must be below the age of 10 at the time of account opening
- Multiple Sukanya Samridhhi accounts cannot be opened for a single girl child
- Only two SSY accounts are allowed for a family i.e. one for each girl child
How to Download SSY Application Form Online
Sukanya Samriddhi Yojana Account Application form can be downloaded from various sources such as:
- The Reserve Bank of India Website
- The India Post Website
- Individual websites of public sector banks (SBI, PNB, BoB, etc.)
- The websites of participating private sector banks (e.g. ICICI Bank, Axis Bank and HDFC Bank)
While
there are multiple sources for downloading the SSY application form, the fields
in the form will be the same regardless of source.
Under
what circumstances can the account be closed prematurely?
In
the event of the death of the account holder, the account will be closed
immediately on the production of a death certificate issued by the competent
authority and the balance in the account will be paid, along with the interest
till the month preceding the month of the premature closure of the account, to
the guardian of the account holder.
Key Features of Sukanya Samriddhi Yojana
- If an SSY account holder is unable to make even the minimum deposit of Rs.250 in a financial year, his/her account will be termed as a ‘Default Account’. Till the maturity date, this default account will earn the interest rate as applicable in the scheme.
- Premature closure of SSY accounts can only be processed in case of death of the girl child or in some cases- Medical treatment of the girl child against some life-threatening disease - Death of the guardian
- A girl child can operate her own account after the age of 18 years. Once she is 18 years old, she is eligible for operating the SSY after submitting all the necessary documents to the post office/bank where the account is being held. When will the account mature?
The account matures on the completion of 21 years from the date of opening or whenever the girl child gets married, whichever is earlier, subject to the following:
- It is also provided that where the marriage of the account holder takes place before the completion of such a period of 21 years, the operation of the account will not be permitted beyond the date of her marriage.
- Provided further that where the account is closed before the completion of 21 years, the account holder will have to give an affidavit to the effect that she is not below 18 as on the date of closing of an account. On maturity, the balance, including the interest outstanding in the account will be payable to the account holder on the production of withdrawal slip along with the passbook
For more information please visit: Sukanya Samriddhi Yojana(SSY)
Disclaimer: For complete information, please contact the issuer before applying for the scheme. Also, rules are subject to change and accordingly impact the buying decision.
