Sukanya Samriddhi Yojana (SSY) – Interest Rate 2023, Tax Benefits, Eligibility, Bank List, Age Limit & Other Details

 

Sukanya Samriddhi yojana : Under account can be opened for daughter below 10 years of age. A minimum deposit of Rs 250 per year is mandatory in this account. While a maximum of one and a half lakh rupees can be invested in a year. When the daughter turns 18, up to 50 percent of the amount deposited in the account can be withdrawn. It can help in higher education of daughter.

The Sukanya Samriddhi Yojana is a government-sponsored small savings scheme for the parents of girl children. The scheme was launched in 2015 with an aim to provide financial security to the girl child and her parents in their old age. The Sukanya Samriddhi Yojana offers several benefits to its subscribers, including income tax exemption, high interest rates, and flexible withdrawal options. In this article, we will take a detailed look at the Sukanya Samriddhi Yojana benefits and interest rates.

Investment value	Minimum value – Rs.250 and Maximum value – Rs.1.5 lakh per annum
Current yearly interest rate	8% per annum
Maturity value	Would vary depending on the value invested
Maturity duration	21 years from the date of investment

What is Sukanya Samriddhi Yojana (SSY)?

The Sukanya Samriddhi Yojana (SSY) is a long-term, tax-free investment scheme launched by the Government of India in 2015. It is specifically designed to help parents save for their daughter’s education and marriage expenses. Under the scheme, parents can open an account in the name of their daughter who is below 10 years of age. A maximum of two accounts can be opened per family. The account must be opened before the girl turns 10 years old and can only be closed when she reaches the age of maturity (21 years old).

The minimum deposit amount under the scheme is Rs. 1,000 and there is no upper limit on deposits. Deposits made into the account earn interest at the rate set by the Indian government, which is currently 8.4% per annum. Deposits made into the account are eligible for income tax deduction under Section 80C of the Income Tax Act, 1961. Withdrawals from the account are allowed after the girl reaches 18 years of age, but only for certain specified purposes such as funding her higher education or marriage expenses.

Eligibility of Sukanya Samriddhi Yojana

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.

Benefits of Sukanya Samriddhi Yojana

• Affordable Payments: The minimum deposit required to maintain an SSY account is Rs.250 per fiscal year. You can make deposits as per your convenience up to Rs.1.5 lakh per fiscal year. The payments seem very affordable for people from all sections of society. Even if you happen to miss out on paying for a year, a penal charge of Rs.50 will be levied on the missed minimum payment of Rs.250 but the account will be continued.
• 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.
• Attractive Interest Rates: The interest rate applicable to SSY accounts has always been high as compared to other government-backed schemes. Currently, the rate is at 8% p.a.
• Guaranteed Returns: Since SSY is a government-backed scheme, there is a guarantee of returns upon its maturity.
• Convenient Transfer: The SSY account can be transferred from any post office to a bank or vice-versa anywhere in India.

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.

Online

To make online payments to your SSY account, you must first download the IPPB app to your smartphone. You can use this app to set up standing instructions for a specific amount to be deposited online to your SSY account. Here’s how to do it step by step:

• Money should be transferred from your bank account to the IPPB account.
• Navigate to DOP Products on the IPPB app and choose the Sukanya Samriddhi Yojana account.
• Enter your SSY account number as well as your DOP client ID.
• Choose the amount you want to pay and the length of the instalment.
• The IPPB will tell you when the payment procedure has been successfully set up.
• You will be notified each time the app conducts a money transfer.

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.

How can SSY help you save for your daughter’s future?

• When it comes to saving for your daughter’s future, સુકન્યા સમૃદ્ધિ યોજના (SSY) can be a helpful tool. The SSY is a government-sponsored savings scheme that offers attractive interest rates and tax benefits. The scheme can be opened in any designated bank or post office, and deposits can be made until the girl turns 10 years old.
• The main advantage of the SSY is that it offers a very high rate of interest. For example, for the financial year 2019-2020, the interest rate was 8.4%. This is significantly higher than what is offered by most other savings schemes. Moreover, the interest earned on the account is exempt from income tax.
• Another benefit of the SSY is that it allows for premature withdrawal in certain circumstances, such as medical emergencies or higher education expenses. However, there are some conditions attached to such withdrawals, and a penalty may be levied if these conditions are not met.
• Overall, the Sukanya Samriddhi Yojana can be a valuable tool for saving for your daughter’s future. It offers high interest rates and tax benefits, and gives you the flexibility to make premature withdrawals in certain situations.

What are the benefits of investing in SSY?

The Sukanya Samriddhi Yojana (SSY) is a scheme launched by the Indian government to encourage parents to save for the future education and marriage of their girl child. The scheme offers many benefits, most notably the tax-free interest earned on the deposited amount.

Other benefits of investing in SSY include:

• The deposited amount is exempt from wealth tax.
• The account can be opened by any resident Indian citizen.
• The account can be opened in any post office or authorized bank branch.
• Minimum deposit amount is Rs 250 and there is no maximum limit.
• Deposits can be made through cash, cheque or demand draft.

What is the interest rate for SSY deposits?

The interest rate for deposits in the Sukanya Samriddhi Yojana (SSY) scheme is currently 8.1% per annum. This rate is fixed for the entire duration of the deposit, which has a minimum tenure of 21 years. Interest is paid out annually, and deposits can be made until the girl child reaches the age of 10 years.

Conclusion

The Sukanya Samriddhi Yojana is a great scheme for parents who want to start saving early for their daughter’s future. The scheme offers high interest rates and tax benefits, making it an ideal investment option. With the recent changes in the interest rate, the Sukanya Samriddhi Yojana is now even more attractive. If you are a parent looking to invest for your daughter’s future, we urge you to consider this scheme.