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Sukanya Samriddhi Yojana: Eligibility, Benefits, How to Apply, Withdrawal Rules, and More

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Sukanya Samriddhi Yojana

Last Updated on Aug 17, 2022 by Anjali Chourasiya

‘Beti Bachao, Beti Padhao‘ campaign has been launched by the Government of India for the upliftment, empowerment, and welfare of women and girl children. One scheme under the initiative is Sukanya Samriddhi Yojana (SSY). The purpose of this scheme is to create savings for a girl child in every family. Let’s explore this scheme in detail and understand its eligibility criteria, the application process, withdrawal rules, interest rates, and more.

Key highlights

Sukanya Samriddhi Yojana official website: https://www.india.gov.in/sukanya-samriddhi-yojna 

Interest rate7.60% p.a. (as of July 2022)
Minimum investmentRs. 250 p.a.
Maximum investmentRs. 1.5 lakh p.a.
Maturity period (lock-in period)21 yrs

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana is a government-backed savings scheme aimed at empowering girl children in the country. It is launched with the vision to provide a better future for the girl child and enable her parents to build a fund for her education and marriage expenses. The scheme is one of the great ways to ensure a financially secure future for the girl child. 


Benefits of Sukanya Samriddhi Yojana

There are several benefits of this scheme. Let’s look at them.

1. High interest

Among other savings plans that are aimed at offering financial security of a girl child, Sukanya Samriddhi Yojana offers a higher interest rate. The government declares the applicable interest rate every quarter in a financial year, and the interest on the investments is compounded yearly. At the time of withdrawal, the funds invested in this scheme increase manifold.


2. Maturity benefits

According to the scheme, the account balance, including the accumulated interest of the Sukanya Samriddhi Account, will be paid to your girl child (the account holder). If the account is not closed even after maturity, the interest will be calculated on the accumulated amount until the account is closed.

3. Tax savings

The contributions you make towards this scheme are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. Therefore, you can claim deductions up to Rs. 1.5 lakh invested in the scheme. Further, the tax benefits are available on the accumulated interest and the balance received after maturity. This scheme comes under the Exempt-Exempt-Exempt (EEE) status.

4. Flexible investment

The scheme is aimed at supporting every girl child. Hence, the investment amount is flexible to cater for parents with different financial needs. You are allowed to make a minimum investment of Rs. 250 to a maximum deposit of Rs. 1.5 lakh per year. 

Eligibility criteria to open Sukanya Samriddhi Account

The scheme is available to everyone. However, there are some eligibility criteria. Let’s understand them.

  1. The parents or legitimate guardians of a girl child can open the account.
  2. The girl child should be under the age of 10 at the time of account opening. The account remains operational till she reaches the age of 21 yrs.
  3. Only one account per girl child is allowed.
  4. A family is permitted to open a maximum of two Sukanya Samriddhi Accounts (one for each girl child). The account can be opened for more than two girls in some special cases, such as,
    1. if a girl child is born before the birth of twin or triplet girls, or if the triplets are born at first, then a third account can be opened. However, if a girl child is born after the birth of twin or triplet girls, a third Sukanya Samriddhi Account cannot be opened.

How does Sukanya Samriddhi Yojana Account work?

It is necessary to remember that you can make the deposits only for the first 15 yrs after opening the account. After that period, the accumulated funds will earn a compounded interest till the account closes. As a result, the compounded account balance at the time of maturity can support your daughter’s dream and can be used to fund her marriage.

How to invest in Sukanya Samriddhi Yojana?

You can apply for the Sukanya Samriddhi Yojana through the post offices or banks. Online and offline processes are available to apply for this scheme. For this purpose, you need to submit a few documents listed as follows,

  1. Birth certificate of the girl child
  2. Your Photo ID (parent or legitimate guardian)
  3. Address proof of the applicant
  4. Know Your Customer (KYC) proof such as PAN, Voter ID, etc.

Process of application

Let’s explore the offline and online application modes to invest in the Sukanya Samriddhi Yojana. 

How to open Sukanya Samriddhi Account offline?

Here are the steps to follow to open your Sukanya Samriddhi Account offline.

  1. Visit your bank or nearest post office.
  2. Fill out the application form, known as FORM SSA-1. The form is available at the bank and the post office. You can also download, print, and fill out the form beforehand.
  3. After filling out the form, submit the necessary documents.
  4. Pay your first deposit, which can be a minimum amount of Rs. 250 up to a maximum of Rs. 1.5 lakh. 

The bank might take some days to process your application. After verification, your Sukanya Samriddhi Account will be opened, and you will be issued a passbook.

How to open Sukanya Samriddhi Account online?

To submit your application online, you need to download IPPB (Indian Posts Payments Bank) app. It is a division of the Indian Post. The app can be downloaded from here, and you can create your account.

  1. After creating your account, transfer the money from your current bank account to your IPPB account.
  2. Find ‘DOP Products’ on the IPPB app and click on the Sukanya Samriddhi Yojana account.
  3. Enter the account number as well as your DOP customer ID.
  4. Select your initial deposit for your Sukanya Samriddhi Yojana account and the duration of the instalments. 
  5. The IPPB will inform you when your payment procedure has been completed and successfully set up.

You will be notified every time a transaction happens in your account.

Sukanya Samriddhi Yojana interest rates in 2022

The interest rate for Sukanya Samriddhi Yojana for the FY 2022-2023 is 7.60% p.a. It is applicable from 1 April 2022. The interest on your investment is credited at the end of each financial year. The rate of interest is decided by the Government of India and changes every quarter. It is important to note that if the girl child becomes a Non-Resident Indian (NRI), no interest will be given.

Withdrawal rules for Sukanya Samriddhi Yojana

The scheme has many benefits. However, it also has a lock-in period of 21 yrs. So, can you make a withdrawal before 21 yrs? There are certain situations where you can withdraw the Sukanya Samriddhi Account balance before maturity. Let’s explore withdrawal rules for the scheme.

Withdrawal rules on account maturity

After the maturity period of the scheme, the entire amount can be withdrawn by the girl child (account holder). The following documents are to be submitted for the withdrawal:

  • Address proof
  • ID proof
  • Withdrawal application form
  • Citizenship proof

Partial withdrawal rules for Sukanya Samriddhi Yojana

Partial withdrawal is allowed in case of education and marriage of the girl child.

  • If the withdrawal is made for higher education, the girl has to complete the 10th standard education. Documents like fees receipt or admission certificate of the university or college must be submitted at the time of withdrawal application.
  • If the withdrawal is made for the marriage of the girl child, she has to be 18 yrs or older. You must apply one month before the marriage or three months after the marriage. At the time of applying, proof of identity and marriage must be submitted.

Premature withdrawal in other cases

  • In case the child dies, the right of the Sukanya Samriddhi Account will be given to the parents or the legitimate guardian. The withdrawal can be made with the submission of the death certificate.
  • If the girl is no longer a citizen of India, the account will close. The change in the citizenship status must be communicated to the bank.
  • The account can also be closed in case the girl is facing difficulties for survival, like in the case of the death of a parent or guardian, etc. For this purpose, you need approval from the bank or the post office you have an account in.

Tax benefits

Sukanya Samriddhi Yojana comes under the EEE category. It simply means you get a triple tax benefit. 

Exemption 1: All the contributions made towards the Sukanya Samriddhi Yojana are eligible for deduction under Section 80C of the Income Tax Act up to Rs. 1.5 lakh. Remember that if you have contributions in other instruments and have exhausted your Section 80C limit of Rs. 1.5 lakh, then you will not be eligible for the deductions under this scheme.

Exemption 2: The interest that you have earned on the investments made for the scheme is exempted from tax.

Exemption 3: The accumulated amount you get after maturity is tax-free. 

Conclusion

Sukanya Samriddhi Yojana is one of the best savings schemes for a girl child in India. It creates a sufficient corpus for your daughter after she turns 18. The investment in the scheme can help you support your daughter’s education and fund her marriage. There are many schemes available for a girl child in India. Check them out here.

FAQs

1. Can NRIs avail the benefit of the Sukanya Samriddhi Scheme?

NRIs are not eligible to be a part of the Sukanya Samriddhi Yojana. If the girl child enrolled in the Sukanya Samriddhi Scheme becomes an NRI, the account closes. 

2. What happens when no deposits are made towards the Sukanya Samriddhi Account?

A Sukanya Samriddhi Account is considered inactive when no deposits are made towards it. However, it is possible to revive the account by paying a penalty fee of Rs. 50.

3. How many Sukanya Samriddhi Accounts can I take for a single girl child?

You can open only one account per girl child. If you are a family with two or more daughters, you can avail a maximum of two accounts. However, there are certain circumstances in which three accounts per family are permissible. 

If a girl child is born before the birth of twin or triplet girls, or if the triplets are born at first, then a third account can be opened. However, if a girl child is born after the birth of twin or triplet girls, a third Sukanya Samriddhi Account cannot be opened.

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