How to apply for Sukanya Samriddhi Yojana? All you need to know about eligibility, Interest rate and tax benefits

Sukanya Samriddhi Yojana (SSY) is a government deposit scheme launched for the girl child. It was launched as part of the government’s ‘Beti Bachao, Beti Padhao’ campaign. The scheme was launched to secure the future of a girl child for the purpose of education and/or marriage.

Below we answer questions related to who can invest in the scheme, how to open an account in the scheme, how much can be invested etc.

  1. Who can invest in Sukanya Samriddhi Yojana?
    A Sukanya Samriddhi Account can be opened by a guardian at any time, in the name of a girl child who is below the age of 10 years. Do keep in mind that only one account can be opened for one girl child. Both the parents cannot open an account for the same girl child. As per the scheme rules, accounts can be opened for a maximum of two girls in a family. However, in case of birth of twins/triplet girls, more than two accounts can be permitted.
  2. What is the minimum and maximum amount of deposit?
    The scheme account can be opened with a minimum of Rs 250. Once the account is opened, a minimum deposit of Rs 250 has to be made every financial year. If the account holder fails to deposit the minimum amount in the account every year, then the account shall be treated as a default account. Subsequent deposits in multiples of Rs 50 are allowed.The maximum amount that can be deposited in the account is Rs 1.5 lakh in a financial year.
  3. What are the documents required to open the Sukanya Samriddhi account?
    To open the account, the guardian is required to submit duly filled Form-I along with a birth certificate of the girl child. The form also asks for the PAN and the Aadhaar of the guardian.
  4. For how long can the deposits be made in the Sukanya Samriddhi account?
    The deposits can be made till the completion of 15 years from the date of opening of account.
  5. When will the Sukanya Samriddhi account mature?
    The Sukanya Samriddhi account will mature after 21 years from the date of opening of the account or at the time of marriage of the girl child after attaining age of 18 years (1 month before or 3 months after date of marriage).
  6. What is the interest rate on Sukanya Samriddhi account?
    The interest rate on Sukanya Samriddhi account is notified by the government on a quarterly basis along with rates on other small saving schemes. For the January-March 2021 quarter, the interest rate has been set at 7.6% per annum.
  7. How is interest amount calculated in the Sukanya Samriddhi account?
    The interest on the Sukanya Samriddhi Yojana is calculated on the lowest balance in the account between the close of the 5th day and the end of the month. The account comes with yearly compounding. However, the actual interest amount will be credited to the account at the end of each financial year.
  8. Where can the Sukanya Samriddhi account be opened?
    The Sukanya Samriddhi account can be opened either in a post office or a bank which offers this scheme.
  9. What are the tax benefits available on the Sukanya Samriddhi Yojana?
    The Sukanya Samriddhi Yojana enjoys exempt-exempt-exempt status under the Income-tax Act, 1961. The deposits made under the scheme offers deduction under section 80C. The interest earned on the deposits and the maturity amount is exempted from tax.
  10. Is premature closure of Sukanya Samriddhi account allowed?
    Yes, premature closure of Sukanya Samriddhi account is allowed under certain conditions. The premature closure of the account is allowed after 5 years of account opening. The premature closure of the account will be allowed either on the death of the account holder (i.e., the girl child) or on extreme compassionate grounds. The extreme compassionate grounds include life-threatening disease of account holder and death of the guardian by whom an account is operated. Do keep in mind, in case of death of the account holder, post office savings account interest rate will be applicable from the date of death to the date of payment.
  11. What is the process to withdraw money from Sukanya Samriddhi account?
    As per the scheme rules, withdrawal of maximum of up to 50% of the balance available at the end of the previous financial year is allowed for the purpose of education of the account holder, i.e., the girl child. Such withdrawal is allowed after the girl child attains the age of 18 years or has passed 10th standard, whichever is earlier. The withdrawal from Sukanya Samriddhi account can be made either in a lump sum or in instalments, not exceeding one per year, for a maximum of five years. Further, the amount of withdrawal will be restricted to the actual requirement on account of educational fees and other charges required at the time of admission, subject to an overall ceiling of 50%.
  12. How to revive a Sukanya Samriddhi account in default?
    A Sukanya Samriddhi account can become a default account if the minimum deposit is not made in a financial year. The account in default can be revived before the completion of 15 years from the date of opening of the account by paying the minimum deposit amount, i.e., Rs 250 plus penalty amount of Rs 50 for each year of default.
  13. Who operates the Sukanya Samriddhi account?
    The account is operated by the guardian till the girl child attains the age of 18 years.
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