Sukanya Samriddhi Yojana 2024-25

The Sukanya Samriddhi Yojana (SSY), an initiative by the Ministry of Finance dedicated to supporting the financial needs of girls, was introduced on January 22, 2015, as part of the Beti Bachao Beti Padhao campaign. This scheme, notified by the Government of India on December 14, 2014, aims to assist in covering the educational and marriage expenses of a girl child. Parents are encouraged to create a fund for their daughter’s future needs through SSY, which can be applied for at Post Offices, Public Sector Banks, and select Private Sector Banks like HDFC Bank, Axis Bank, and ICICI Bank.

Opening an SSY account for a girl below the age of 10 can be done by her parent or legal guardian, with each family limited to two accounts. Only one account is allowed per girl child. The scheme requires a minimum annual investment of ₹250 and allows a maximum investment of ₹1,50,000. The maturity period is 21 years, with an 8.0% interest rate for the period from April 1, 2023, to June 30, 2023.

Importantly, the principal amount deposited, interest earned, and maturity benefits are all exempt from taxes. Additionally, the principal amount qualifies for a deduction under section 80C, up to ₹1,50,000. Since its inception, the scheme has seen the opening of approximately 2.73 crore accounts, with deposits totaling nearly ₹1.19 Lakh Crore.

Benefits

1. The Minimum Investment is ₹250 per annum; The Maximum Investment is ₹1,50,000 per annum. The Maturity Period is 21 years.
2. At present, SSY has several tax benefits and the highest rate of interest among all the Small Savings Schemes i.e. 8.0% (for the period 01.04.2023 to 30.06.2023).
3. The principal amount deposited, interest earned during the entire tenure, and maturity benefits are tax-exempt under Section 80C.
4. The account can be transferred anywhere in India from one post office/Bank to another.
5. Interest payment even after maturity if the account is not closed.
6. A premature withdrawal of up to 50% of investment is allowed after the child gains the age of 18 years even if she is not getting married.

Advantages

The annual investment requirements for Sukanya Samriddhi Yojana (SSY) range from a minimum of ₹250 to a maximum of ₹1,50,000, with a maturity period of 21 years. Currently, SSY offers notable tax benefits and boasts the highest interest rate among all Small Savings Schemes, standing at 8.0% for the period from April 1, 2023, to June 30, 2023.

Principal amounts deposited, interest earned throughout the tenure, and maturity benefits are all exempt from taxes under Section 80C. The account allows for easy transfer within India, enabling a switch between post offices or banks. Even after maturity, interest payments continue if the account remains open. Additionally, a premature withdrawal of up to 50% of the investment is permitted once the child reaches 18 years of age, regardless of marriage plans.

Eligibility

1. The account may be opened by one of the guardians in the name of a girl child, who has not attained the age of ten years as of the date of opening of the account.
2. Every account holder shall have a single account under this Scheme.
3. An account under this Scheme may be opened for a maximum of two girl children in one family: Provided that more than two accounts may be opened in a family if such children are born in the first or in the second order of birth or in both, on submission of an affidavit by the guardian supported with birth certificates of the twins/triplets regarding the birth of such multiple girl children in the first two orders of birth in a family. Provided further that the above proviso shall not apply to the girl child of the second order of birth if the first order of birth in the family results in two or more surviving girl children.

Application Process

Offline

A Sukanya Samriddhi Yojana (SSY) account can be opened at any participating bank or Post Office branch. To open the account, complete the steps outlined below:

1. Go to the bank or Post Office where you want to open the account.
2. Fill out the application form with the necessary information and attach any supporting papers.
3. Pay the first deposit in cash, check, or demand draught. The payment can range between Rs.250 and Rs.1.5 lakh.
4. Your application and payment will be processed by the bank or the Post Office.
5. After processing, your SSY account will be activated. A passbook will be supplied for this account to commemorate the account’s opening.

Documents Required

1. Birth certificate of the girl child
2. Photo ID of applicant parent or legal guardian
3. Address proof of applicant parent or legal guardian
4. Other KYC proofs such as PAN, and Voter ID.
5. SSY account opening form.
6. A medical certificate has to be submitted in case multiple children are born under one order of birth.
7. Any other documents that are requested by the bank or post office.

To open an SSY account, essential documents include the birth certificate of the girl child, photo ID of the parent or legal guardian, address proof of the parent or legal guardian, KYC proofs such as PAN and Voter ID, the SSY account opening form, and a medical certificate in case of multiple children born under one birth order. Additional documents may be requested by the bank or post office during the application process. Click here for more details