As a part of Beti Bachao, Beti Padhao campaign, Sukanya Samriddhi Account scheme was launched by Prime Minister Narendra Modi on 22-Jan-2015. Sukanya Samriddhi Account is a Government of India initiative targeted at the parents of Girl Children and encourages the parents to build a fund for the future education and marriage expenses for their female child. It’s a savings deposit scheme for the girl child. Sukanya Samriddhi Account presents itself as an affordable scheme and offers one of the highest rates of interest.
Sukanya Samriddhi Account can be opened in any post office or the authorized banks; this scheme shall work on concept of one girl child – one bank account i.e. only one account shall be opened for one girl child;
Maximum for two girl childrenParents can open this account for a maximum of two girl children.
For third childUnder the scheme natural or legal guardian of the girl child shall be allowed to open third account in the event of birth of twin girls as second birth or if the first birth itself results into three children, on the production of a certificate to this effect from the competent medical authority where the birth of such twin or triple girl children take place.
Account Opening AgeSukanya Samriddhi Account can be opened in the name of girl child anytime after her birth but before she attains the age of 10. However any girl child who had attained the age of ten years, one year prior to the commencement of these rules shall also be eligible for opening of account under these rules. Scheme has commenced from 02.12.2014.
Account OperatorAccount shall be operated by parents/ legal guardian till the girl child attains the age of 10. Thereafter she may operate her account, if she chooses to;
Transfer of accountAccount is transferable to any part of the country in situation of account holder or depositor moving to other places;
InterestInterest paid by government under the scheme is 8.4% for FY 2017-18 (AY 2018-19) & 8.1% for FY 2018-19 (AY 2019-20). However interest rate is not fixed and Government will declare on yearly basis the interest rate.
Interest CompoundingInterest shall compound on a monthly basis and would get credited to the account till the account gets matured or amount is withdrawn from the date of opening of account.
Maturity durationMaturity Period of the account is 21 years. But if the girl wishes to continue the account further, maturity amount would grow at the same interest rates as per the scheme’s current rates.
Marriage before 21If the girl is married anytime after the age of 18 years, the scheme offers closure of the account. In such case, affidavit and relevant proof would be required stating the marriage of such girl.
WithdrawalNo amount can be withdrawn from this account before the girl attains the age of 18 years. 50% amount can be withdrawn from the account after the girl turns 18 years for her higher education or marriage purpose.
Minimum deposit periodMinimum deposit period is 14 years; so, the amount can be withdrawn only if some amount is deposited in the account till 14 years.
Opening amountOpening amount to be deposited in account is Rs. 250. [Before 23 July 2018, this limit was Rs 1,000]. Thereafter a certain amount is to be deposited in regular intervals (monthly or yearly as suitable).
Minimum depositThe minimum amount to be deposited in the Sukanya Samriddhi Account is Rs. 250 at a single point in time. [Before 23 July 2018, this limit was Rs 1,000]. Maximum limit of deposition of such amount shall not exceed Rs. 1,50,000 at a single point in time.
PenaltyIf in a financial year, the minimum amount has not been deposited, the account stands inactive. A fine of Rs 50 per year has to be deposited to re-active the account.
Loan facilityIt is not available against Sukanya Samriddhi account,
Very basic and only three documents are required for opening SSY account. These documents are, namely,
In short it is applicable to-Together with providing financial security to a girl child’s future, the savings under sukanya samriddhi yojana also help guardian or parent to claim income tax benefits such as,
| S.No. | Basis of difference | Sukanya Samriddhi Account | Public Provident Fund |
| 1. | Targeted Consumers | SSA has been implemented for welfare of girl children | PPF has been implemented for welfare everybody |
| 2. | Minimum balance required | Rs. 250 [Before 23 July 2018, this limit was Rs 1,000] | Rs. 500 |
| 3. | Maximum Amount which can be deposited every year | Rs. 1,50,000 individually for every account opened by a person | Rs. 1,50,000 combined for all accounts opened by a person |
| 4. | Interest on savings for FY 17-18 & FY 18-19 | 8.4% & 8.1 % | 7.60% & 8.7% |
| 5. | Minimum Lock in period | 14 years | 15 years |
| 6. | Premature Withdrawal | 50% at the age of 18 of girl child | Allowed for educational or financial needs up to 50% |
The answer to your question is Investment plus safety for your girl child. As we know there are a lot of other plans of insurance that provide child plans too but they instead of safeguarding your child future, safeguard the agents future who is selling the policy.
But Sukanya Samriddhi Account is different, here all the amount you put in the account is an investment. Since girl child needs lump sum money at the time of her marriage or for education, it is important to start saving for those big ticket item in their early ages.
It is really a very good saving scheme because it offers highest interest rates as compared to other schemes. Moreover since backed by the government, it is secure.
Although SSY accounts are a great way of providing financial support to girl child, like every scheme it too has its drawbacks.
One can transfer their SSY accounts to any other place in India depending on their convenience. If one wishes to do the same, following are the steps:
And thus the Sukanya Samriddhi account of the account holder will be transferred. It is a very simple and straight forward process which only requires the KYC documents and the passbook.
The account can only be opened in the name of a girl child (beneficiary) as long as she is below the age of 10 at the time of opening the account. The date of birth is taken as a proof for the same.
Also, there could only be one account for each girl child. A guardian can only open two such accounts, while in case of twins they can have three SSY accounts.
5 Year Mark:The request for the first premature closure of the Sukanya Samriddhi account could be made at the completion of the 5 year period after opening the account. But, it is only applicable in the case of extreme compassionate grounds, such as medical support.
10 Year Mark:Once the girl is above the age of 10, she herself can operate her account. She, her parents or legal guardian are at full liberty to make further deposits in the SSY account.
15 Year Mark:Once the 15 year mark is reached (to be counted from the day the account was set up) no further deposits will be accepted. However, if the account wasn’t made at the time of birth of the girl then the deposit period, though not increased, will be completed later. For example, if the girl is 9 year old at the time the account was opened, the deposit period will end when she turns 24.
18 Year Mark:The next window for the withdrawals appears when the girl is 18 years old, but at that time only up to 50% of the total amount could be withdrawn. Also, the rules make it very clear that the money is not to be used for personal needs, rather it can only be withdrawn for the purposes of marriage or higher education.
21 Year Mark:Irrespective of the age of the girl’s age, the Sukanya Samriddhi account will run for 21 years from the day of its opening. But, the rules however state that it is not necessary to close the account after 21 years. In fact, if the account is not closed after 21 years, the account will go on receiving interest until the final closure.
You can deposit your cash or cheque directly at the bank or post office. Or, if you prefer, you could do fund transfer through the linked guardian’s account.
Follow this process to transfer fund from the linked guardian’s account:
To apply for an SSY scheme, one has to fill the Account opening form for their girl child and submit it at their nearest post office or bank that provides this facility.
Premature closure of a Sukanya Samriddhi account is not permitted.
Loan facilities are not available in SSY accounts.
The minimum amount that can be deposited in the Sukanya Samriddhi account are Rs.250 [Before 23 July 2018 it was Rs 1,000]. Although the maximum amount that could be deposited is ?150000 but there is no limit on how much one can deposit each year or each month. Also, if the girl wishes to withdraw from her account she can withdraw up to 50% given that she is 18 years old or above.
The current rate of SSY account is 8.1% which is compounded annually. The interest rate is governed by the Minister of Finance of the country.
Only two accounts can be set up by a single guardian and only one account for one girl child. However there is a provision of opening three SSY account in case of twins or triplets.
Yes, a partial amount can be withdrawn from the account after the girl child (benefactor) turns 18 for her marriage or higher studies. However, the partial amount being withdrawn cannot be more than 50% of the total amount.
Sukanya Samriddhi Yojana accounts mature in 21 years from the date of account opening.
At present, neither the bank branches nor the post office provide the option of opening a SSY account online. But once the account is opened, one can set the standard instructions online. This could be done only after the submission of the required documents has taken place.
So gift your beloved daughter the best gift !!
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