Sukanya Samriddhi Yojana [SSY] Online: Scheme Interest Rate 2023, Age Limit, Benefits

Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme launched by the Government of India in 2015 as part of the ‘Beti Bachao, Beti Padhao’ campaign. It is designed to encourage parents and guardians to save money for the future education and marriage expenses of their girl child.

The scheme offers a higher interest rate than other savings schemes, making it an attractive option for those looking to invest in their child’s future. The account can be opened in any post office or authorised bank and operated until the girl reaches age 21. The scheme also provides tax benefits under section 80C of the Income Tax Act, making it a popular investment option for many families.

The Sukanya Samriddhi Yojana has been instrumental in promoting the welfare of girl children in India and has helped many families plan and save for their daughters’ future expenses. In this article, we will read about the Sukanya Samridhi Yojana, so stay tuned until the end.

Objective Of SSY:

The Government of India launched the Sukanya Samriddhi Yojana (SSY) to promote the welfare of the girl child and empower families to save for their future expenses. Here are the key objectives of the scheme:

1. Encouraging parents to save for their girl child’s future: The scheme aims to encourage parents to save money for their child’s future education and marriage expenses by providing them with a high-interest rate on their savings.
2. Promoting the education and welfare of girl children: The scheme aims to promote the education and welfare of girl children by providing them with a financial cushion for their future expenses and reducing the financial burden on their families.
3. Empowering families to become financially self-sufficient: The scheme aims to enable families to become economically self-sufficient and plan for their future expenses by providing them with a long-term savings option with a high-interest rate.
4. Boosting the overall economy: The scheme aims to boost the economy by encouraging savings and investment and providing a stable source of funds for the future expenses of girl children.
5. Encouraging the overall development of girl children: The scheme aims to promote the overall development of girl children by providing them with a financial cushion for their future expenses, enabling them to focus on their education and career goals without financial stress.

However, the Sukanya Samriddhi Yojana is a progressive initiative that aims to promote the welfare of girl children and empower families to become financially self-sufficient. It has been instrumental in promoting the education and welfare of girl children in India and has helped many families plan and save for their daughters’ future expenses.

Benefits Of Sukanya Samriddhi Yojana/Scheme:

The Sukanya Samriddhi Yojana (SSY) is a savings scheme launched by the Indian government to promote the welfare of girl children and empower families to save for their future expenses. Here are some of the key benefits provided by the scheme:

1. High-interest rate: The scheme offers a higher interest rate than other savings schemes, making it an attractive investment option for those looking to save money for their girlchild’s future expenses.
2. Tax benefits: Under section 80C of the Income Tax Act, the scheme provides tax benefits, enabling families to save on income tax payments.
3. Long-term savings option: The scheme allows families to save for the long term and provides a stable source of funds for their girl child’s future expenses, such as education and marriage.
4. Flexible investment options: The scheme provides flexible investment options, allowing families to invest as little as Rs. 250 and up to a maximum of Rs. 1.5 lakhs per year.
5. Guaranteed returns: The scheme provides a guaranteed rate of return, ensuring that families receive a steady income on their savings.
6. Easy to open and operate: The scheme can be extended in any post office or authorised bank and can be used until the girl reaches the age of 21.
7. Educational Expenses Covered: You can withdraw 50% of the account balance as of the previous financial year’s end to meet the educational expenses of your girl child. This can be availed by submitting proof of admission.

Overall, the Sukanya Samriddhi Yojana is a beneficial scheme for families looking to save money for their girl child’s future expenses.

Tax benefits Of Sukanya Samriddhi Yojana:

To encourage investments in SSY, the SSA has also been provided with certain tax benefits:

• Investments made in the SSY scheme are eligible for deductions under Section 80C, subject to a maximum cap of Rs 1.5 lakh.
• The interest that accrues against this account which gets compounded annually, is also exempt from tax under Section 10 of the Income Tax Act.
• The proceeds received upon maturity/withdrawal are also exempt from income tax.

What Are The Rules And Regulation For Sukanya Samriddhi Scheme?

Here are some more detailed rules and regulations of the Sukanya Samriddhi Yojana (SSY):

1. Eligibility: The scheme is available for parents or legal guardians of a girl child of 10 years of age. Only one account can be opened for each girl child, and a family can only open two versions (one for each girl child).
2. Account opening: The account can be opened in any authorised bank or post office by submitting the necessary documents, such as the birth certificate of the girl child, identity proof of the parents/guardians, and address proof.
3. Investment limit: The minimum deposit amount is Rs. 250, and the maximum is Rs. 1.5 lakh per financial year. Deposits can be made in multiple instalments or a lump sum amount.
4. Tenure: The account matures after 21 years from the opening date, and the account can be closed after the girl child turns 18. However, if the girl gets married before the age of 21, the report can be closed prematurely.
5. Interest rate: The interest rate on the scheme is decided by the government and is subject to change from time to time. The interest rate is 8% annually (as of April 2023). The interest is calculated and credited to the account annually.
6. Partial withdrawals: Partial withdrawals can be made from the account after the girl child turns 18, but only up to 50% of the account balance at the end of the previous financial year.
7. Account maintenance: It is essential to maintain the account by depositing the minimum amount each year, failing which the account may be considered dormant, and a penalty may be charged.

Therefore,  the Sukanya Samriddhi Yojana is a well-regulated savings scheme that provides long-term benefits for the girl child’s education and marriage expenses. The scheme’s rules and regulations ensure that the account is maintained correctly and that the invested funds are used for the intended purpose.

Sukanya Samriddhi Yojana- Age Limit And Maturity Period:

• Opening SSY account:

A girl child can only have one SSY account. SSY accounts can be opened at any post office or authorised commercial bank branch. It can be opened at any moment between the birth of the girl child and the age of 10.

• Beneficiary of SSY:

Any girl child who is a resident Indian is a beneficiary under SSY from the time of opening the account till the time of maturity/closure.

• Deposits under SSY:

The guardian can deposit the amount and operate the account until the girl child reaches 18. The girl child shall mandatorily use the SSY account after she attains the age of 18 years. The minimum deposit amount for an SSY account is Rs.250 (previously Rs.1,000), after that in multiples of Rs.50, and the maximum is Rs.1,50,000 in every financial year, up to 15 years. Deposits can be made through cash, cheque, demand draft or online transfer.

• Interest on deposits:

The interest rate for the 1st quarter of FY 2023-2024, i.e. 1 April 2023 to 31 June 2023, is 8% p.a. The entire deposit in ‘Account under default’ (where a minimum amount of Rs.250 per year has not been deposited), which is not regularised within the prescribed time, would earn interest till the maturity date of the account. ‘Account under default’ can be regularised within 15 years of Account opening on payment of a penalty of Rs.50 per default year.

No interest is payable after the completion of tenure of the SSY, i.e. after 21 years from account opening. No interest accrues after the girl child becomes a non-citizen or a non-resident of India. Any deposit made above the maximum cap, i.e. Rs.1,50,000 per year, will not earn any interest and can be withdrawn anytime by the depositor

• The Maturity period of SSY:

The maturity period of SSY is 21 years from the account opening or upon her marriage after attaining 18 years. However, contributions have to be made for only 15 years. After that, the SSY account will continue to earn interest until maturity, even when no deposits are made.

Sukanya Samriddhi Yojana- Eligibility:

• Only parents or legal guardians of a girl child can open an SSY account
• The girl child must be a resident Indian and below the age of 10 when opening the account.
• Only one account can be opened for a girl child.
• Only two SSY accounts can be opened by a family, i.e. one for each girl child.
• Sukanya Samriddhi Account can be opened for more than two girls in the below exceptional cases:
  • When a girl child is born before the birth of twin or triplet girls or if triplets are born at first, a third account can be opened.
  • When a girl child is born after the birth of twin or triplet girls, a third SSY account cannot be opened.

Steps To Apply For Sukanya Samriddhi Yojana (SSY):

1. Locate a nearby authorised bank or post office where the account can be opened.
2. Fill out the SSY account opening form with the necessary details, such as the name of the girl child, parents/guardians’ names, and address.
3. Submit the form with the required documents, including the girl child’s birth certificate, identity proof of the parents/guardians, and address verification.
4. Deposit the minimum amount of Rs. 250 to activate the account.
5. Once the account is opened, regular deposits can be made in cash or through a cheque.
6. The account passbook will be issued, which must be maintained and updated regularly.

However, the application process for SSY is simple, and interested individuals can easily apply for the scheme by following these steps.

How Many Years Do You Need To Pay For Sukanya Samriddhi Yojana?

The Sukanya Samriddhi Yojana requires a minimum investment period of 15 years. However, the account can be kept active for 21 years from the opening date, after which it matures, and the invested amount and accumulated interest can be withdrawn. Additionally, partial withdrawals are allowed after the girl child turns 18.

Sukanya Samriddhi Yojana- Online Payment:

You must download the IPPB app on your smartphone to make online payments towards your SSY account. Through this app, you can set standing instructions so that a specified amount will be transferred online to your SSY account. Here is the step-by-step procedure:

• Step 1: Download the IPPB Mobile Banking app from play store on your phone. 

• Step 2: You have to open a zero-balance account if you haven’t already.
• Step 3: Transfer money from your bank account to the IPPB account.
• Step 4: On the IPPB app, go to DOP Products and choose the Sukanya Samriddhi Yojana account.
• Step 5: Enter your SSY account number and the DOP customer ID.

• Step 6: Choose the amount you want to pay and the instalment duration.

• Step 7: IPPB will notify you of the success of setting up the payment routine.
• Step 8: You will be notified each time the app transfers money.

Sukanya Samriddhi Yojana- Withdrawal Rules:

You must submit the duly filled withdrawal form and the SSY account passbook to the bank or Post Office branch where the account is maintained.

To claim or withdraw prematurely, you need to satisfy some conditions, such as marriage expenses or the higher education of the girl child when she has attained 18 years.

Withdrawal can also be made from the account up to 50% of the balance available at the end of the previous F.Y. when the girl is above 18 years or has passed the 10th standard to meet education expenses, such as fees or other such charges. A documentary proof through a confirmed offer of admission to an educational institution or a fee slip shall accompany the application for withdrawal.

Maximum one withdrawal can be made in a year, in a lump sum or 5 instalments, subject to the ceiling specified and to the actual requirement of fee/other charges. 

Sukanya Samriddhi Yojana- Closure Rules:

• Closure on maturity:

Account matures after the completion of 21 years of the girl child. The balance in the SSY, including interest, is paid to the child on submitting an application and proof of identity, residence, and citizenship documents.

• Premature closure:

Premature closure is allowed only in the following situations:

• Reasons for intended marriage after a girl child attains the age of 18 years, an application can be submitted between one month before the wedding and 3 months after marriage along with her age proof documents.
• Death of the girl child on the production of the death certificate, the balance in the SSY and interest will be paid to the guardian.
• Medical treatment in case of life-threatening diseases of the girl child or death of the guardian.
• Deemed closure in case of a change in the status of the girl child, i.e., the girl child either becomes a non-resident or a non-citizen of India. The girl child or her guardian should communicate such a status change within one month of the status change.
• After completion of 5 years from the opening of an SSY, if the post office or bank is satisfied that the operation or the continuation of the SSY is causing undue hardship to the girl child (such as the death of the guardian, medical reasons of the girl child), the girl child or guardian may order for premature closure.
• For any other reasons, if the SSY is to be closed anytime after the opening of this account, it will be permitted. Still, the entire deposit would only earn an interest rate applicable to the post office savings bank.

Documents Required For Sukanya Samriddhi Yojana:

You have to walk down to the post office or a bank branch where you have submitted the SSY application to submit the documents and proofs. You need to submit a physical copy of the following documents:

• Birth certificate of the girl child
• Identity and address proof of the guardian
• Medical certificate for proof of birth of multiple girl children on a single order of birth
• Other KYC documents, such as Aadhaar card, Voters ID, etc.
• Any other documents as required by the post office or banks

Sukanya Samriddhi Yojana- Interest rate 2023:

• The rate of interest for the 1st quarter of FY 2023-2024, i.e. 1 April 2023 to 31 June 2023, has increased to 8%.
• The rate of interest for the 4th quarter of FY 2022-2023, i.e. 1 January 2023 to 31 March 2023, was 7.6%.
• The interest rate for the 1st quarter of FY 2022-2023, i.e. 1 April 2022 to 30 June 2022, was 7.6%.

The entire deposit in ‘Account under default’ (where a minimum amount of Rs 250 has not been deposited), which is not regularised within the prescribed time, would earn interest on the post savings bank account, except if the default is due to the death of the guardian who opened the Account.

Calculation Of Sukanya Samriddhi Yojana Interest:

The interest for the SSY account is calculated on the lowest balance for the calendar month, i.e. between the fifth day of the month and the end of the month. The interest will be credited once, at the end of each financial year.

Generally, you can use the below formula to calculate the interest earned on an SSY account:

A = P(1+r/n)^nt

Here

P = Initial Deposit

r = Rate of interest

n = Number of years the interest compounds

t = Number of years

A = Amount at maturity

Since the interest accrued on an SSY account is compounded yearly, it may take a lot of work to calculate the interest manually. Instead, you can use our SSY Calculator to arrive at the maturity amount upon entering the details, such as possible investment amount per year, the age of the girl child, and the account commencement year.

Frequently Asked Questions:

Summing Up:

In conclusion, the Sukanya Samriddhi Yojana is an excellent savings scheme that focuses on securing the future of the girl child. It offers a high-interest rate, tax benefits, and flexible investment options.

The scheme’s rules and regulations ensure that the account is maintained correctly and that the invested funds are used for the intended purpose. The SSY is a beneficial scheme for parents/guardians looking to invest in their daughter’s future.