Sukanya Samriddhi Yojana (SSY) Eligibility, How to Open Account

Sukanya Samriddhi Yojana is a government-backed savings scheme as part of the “Beti Bachao, Beti Padhao Yojana” for the benefit of the girl child. It can be opened by the parents of a girl child below the age of 10. A Sukanya Samriddhi Account has a tenure of 21 years or until the girl child marries after the age of 18. From April 2020, this scheme offers an interest rate of 7.6% compounded annually.

Parents can now open up to two SSY accounts for girls and a third account can be opened in case of birth of twins/triplets. Here you can get a complete insight of the scheme, how it works and what are the benefits-

Sukanya Samrudhi Yojana is currently earning an annual interest rate of 7.6 per cent. By investing in this scheme, the daughter gets a huge amount at the age of 21. What is special is that about Rs 64 lakh can be achieved on maturity by depositing more amount in this scheme. Which may take the daughter to work in the future. Having this post office plan also keeps the investment completely safe.

The post office pays an annual interest of 7.6 per cent on investments in Sukanya Samrudhi Yojana. Parents only have to invest 14 years in this plan. Maturity is then obtained at the age of 21 years. After 14 years, the closing amount earns interest at an annual interest rate of 7.6 per cent.

Investment in Sukanya Samrudhi Yojana can be started with a minimum of Rs.250. A maximum of Rs 1.50 lakh can be deposited in it. The girl should be below 10 years of age to avail this scheme. The interest rate of this scheme is revised every three months. Accounts can be opened up to 3 girls under Sukanya Samrudhi Yojana. In this scheme you also get exemption under section 80C of the Income-tax Act.

If you open an account in your daughter’s name at the age of 1, and deposit Rs 50,000 every year, your daughter will get about Rs 21.21 lakh when the account matures at an interest rate of 7.6 per cent.

To open an account in Sukanya Samrudhi Yojana, one has to go to the nearest post office. There you have to deposit the daughter’s birth certificate, parents’ Aadhaar card, three photos and at least Rs 250. Your account will then be opened.

Q: Can I take a loan against the balance in the SSY account?

Ans: No. The facility of loan against SSY account balance is not currently available. You can avail the option of loan against PPF instead.

Q: Is premature closure of the Sukanya Samriddhi Yojana Account allowed?

Ans: Yes. Premature closure of the Sukanya account is allowed in certain cases. This may include compassionate grounds due to terminal illness, unexpected demise of the primary account holder, etc. However, the decision to allow such closure is on a case by case basis.

Q: Can I continue investing in SSY if my daughter and I move to another country?

Ans: The SSY account will have to be closed if the girl child becomes an NRI or loses her Indian citizenship.

Q: What is the penalty if I miss my SSY account minimum annual payment?

Ans: There will be a penalty of Rs.50 if minimum amount of Rs. 250 is not deposited in the account during a financial year.

Q: Is there tax on SSY account interest?

Ans: No. SSY is a completely exempt (EEE) investment hence the principal amount invested, the interest earned as well as the maturity amount are all tax exempt.