Sukanya Samriddhi Yojana Account Plan

The Sukanya Samriddhi Yojana initiative aims to improve the lives of girls in the country. The Sukanya Samriddhi plan was created to provide a way of saving for every family’s girl child. The SSY is valid for “21 years” from the date of starting the account or until the girl reaches the age of marriage after reaching the age of 18.

Features of Sukanya Samriddhi Account Plan

  • Account Operations-
    1. The account can be used by the guardian or parents until the girl reaches the age of ten.
    2. When the daughter reaches the age of 18, she must run the account.
  • Deposits made into the account, in a fiscal year, the minimum and maximum deposits that may be made in an account are ₹.500 and ₹.1.5 lakh, respectively. Deposits are accepted in multiples of 100.
  • The scheme’s duration Deposits for the plan should be made over a 15-year period. The system, however, matures after 21 years.
  • Account transfer Anywhere in India, an SSY account may be moved from post offices to banks and vice versa. There will be no fees associated with the account transfer. However, documentation of residency change is required. If no proof is provided, a ₹.100 fee will be charged.
  • Depositing Mode: Deposits to the account can be made through internet transfer, demand draught, check, or cash.

Benefits of Investing in Sukanya Samriddhi Yojana (SSY)

High-Interest Rate: In comparison to other modest savings plans, the Sukanya Samriddhi Yojana provides a high rate of return. The money is compounded yearly and accrues regularly, allowing you to develop a sizable corpus for your daughter’s future ambitions. To compute the returns, utilise the Sukanya Samriddhi Yojana calculator, which is available online. On a yearly basis, the government releases the interest rate for the Sukanya Samriddhi Yojana.

Tax-Benefit: One of the main reasons for the scheme’s success is the tax break it provides. Under Section 80C of the Income Tax Act of 1961, the Sukanya Samriddhi Yojana gives a tax deduction advantage of up to ₹ 1.5 lakhs. Furthermore, both the interest earned and the maturity amount are tax-free.

Compounded Interest: Because it is a long-term investment tool, the benefit of compounding interest makes a significant difference in overall returns.

Government Scheme: The Sukanya Samriddhi Yojana is sanctioned by the Ministry of Finance of the Government of India and provides guaranteed returns at plan maturity

Lock-in Period: The SSY has a lock-in term of 21 years from the moment an account is opened, ensuring that the money are not used for any other personal financial needs and that the maturity proceeds are paid to the female child. Furthermore, when a girl child reaches the age of 18, she is allowed one early departure from higher study. However, the premature amount is limited to 50% of the SSY account balance.

Flexibility: To keep the account operational, a depositor must make a minimum deposit of ₹ 250 every fiscal year. So, if the depositor made the maximum investment last year but is unable to make the same amount this year, a minimum deposit of ₹ 250 can be made to keep the account operational. Furthermore, after the age of ten, the girl kid can control her account.

Account Arrangement: If a Sukanya Samriddhi Yojana account holder changes domicile or location, the account can be moved to another bank or post office.

Sukanya Samriddhi Yojana Highlights:

  • Eligibility: Parental or Legal Guardian of a girl child below the age of 10 are eligible to open the SSY in the name of the girl child
  • Interest Rates: 7.6% per annum
  • Maturity: Period: 21 years or until the girl child marries after the age 18
  • Income Tax Rebate: Eligible for rebate under section 80c of the Income Tax Act, 1961.
  • Minimum Deposit Amount: ₹. 250/-
  • Maximum Deposit Amount: ₹. 1.5 Lakh

Sukanya Samriddhi Yojana Eligibility

The following are the Sukanya Samriddhi Yojana account eligibility criteria

  • A female child’s parent or legal guardian can create an SSY account on her behalf until she reaches the age of ten.
  • The daughter kid must be an Indian resident.
  • In a family, up to two accounts for two daughters can be established.
  • In the event of twin girls, a third SSY account can be formed.

Documents required to open an SSY Account

The following are the paperwork needed to open an SSY account

  1. Form for creating an SSY account
  2. At the time of account opening, the girl child’s birth certificate must be supplied.
  3. At the time of account opening, the depositor’s ID and address evidence must be submitted.
  4. If many children are born in the same birth order, a medical certificate must be filed.
  5. Any other documentation that the bank or post office requests.

Steps to open a SSY Account

The following are the procedures you must take to open a Sukanya Samriddhi Account

  • Fill up the application form at your nearest Bank or Post Office.
  • After you have completed the form, submit it along with all required papers.
  • Pay the first Deposit, which can range from ₹.250 to ₹.1 lakh.

The bank or post office will verify the application form and payment, and if all of the facts are valid, an SSY account will be opened in your name.

Steps to fill an SSY Account form for post office:

  1. Request an SSY account application form from your local post office.
  2. Mention your account number if you have a savings account with the post office.
  3. Under ‘To the Postmaster,’ include the post office branch information and postal address.
  4. Display the applicant’s photograph.
  5. Mention the applicant’s name and the choice ‘Sukanya Samriddhi Yojana’.
  6. Fill in the appropriate information under ‘Account Type’ and ‘Account Holder Type.’
  7. Mention the amount you intend to deposit once the account is established.
  8. Other pertinent information, such as gender, Aadhaar number, PAN, residence, and so on, should be provided.
  9. To authorise all of the information supplied, sign page 1.
  10. If you want to set up standing instructions for the money to be deposited into your account, fill out Section (5) on Page 2.
  11. Check the square box next to SSA to indicate that no other SSY accounts have been established.
  12. Please include the date and your signature.
  13. Give specifics about your nomination.
  14. If the petitioner is illiterate, obtain two witnesses and their signatures.
  15. At the end of the nomination area, include the location, date, and sign

Steps to pay for SSY Online

  • Install the IPBB app on your smartphone.
  • Money should be transferred from your bank account to your IPBB account.
  • Log in to your IPBB account and select ‘Sukanya Samriddhi Yojana’ from the ‘DOP Products’ section.
  • Please include your SSY account number as well as your customer ID.
  • Select the amount to be paid and the length of the instalment.
  • IPBB will notify you once the payment process has been established.
  • You will be notified each time money is transferred to your IPBB account.

Sukanya Samriddhi Yojana Deposit Limits

The lowest yearly contribution to the Sukanya Samriddhi Account is ₹. 250, while the maximum contribution in a fiscal year is ₹. 1.5 lakh. You must invest at least the minimum amount every year for up to 15 years from the date of account opening. The account will then continue to collect interest until maturity.

Sukanya Samriddhi Yojana Withdrawals Rules

The following are the withdrawal rules for the SSY account

  1. The girl child can withdraw the full sum available in the account, including the interest, once the tenure of the account has expired. The following documents, however, must be submitted:
  2. Form for requesting a withdrawal of funds.
  3. Documents proving identity, address, and citizenship
  4. Withdrawal for higher education is permitted if the girl child has reached the age of 18 and has finished the 10th grade. However, the funds must be utilised for the admission fee or any other costs levied at the time of admission.
  5. When filing for a withdrawal, documents such as admittance to the university or college, as well as the fee receipt, must be submitted.
  6. The maximum amount that can be withdrawn is half of what was available the previous year. The money can be withdrawn in five instalments or all at once.

Rules for Premature withdrawal from SSY account

The following are the rules that enable for the account to be closed prematurely

Premature withdrawal from SSY is permitted after the female reaches the age of 18 and marries. To get the benefit, however, an application must be submitted at least one month before the marriage and three months after the marriage. Documents proving the girl’s age must also be presented.

If the girl kid becomes a non-citizen or non-resident, the account is considered cancelled. Any such change in status must be reported within one month of the change in status by the guardian or the girl child.

In the event that the girl child dies, the guardian may withdraw the money in the account. The death certificate, however, must be supplied.

If the account has been open for 5 years or more and the bank or post office believes that the account’s continuation is causing difficulties for the female child, the guardian or girl child may request that the account be closed prematurely.

Permission to close the account will also be granted for other reasons, but the interest received from donations will be the same as the interest rates offered by post offices

Sukanya Samriddhi Yojana Tax Benefit

One of the main reasons for the scheme’s success is the tax break it provides. Under Section 80C of the Income Tax Act of 1961, the Sukanya Samriddhi Yojana gives a tax deduction advantage of up to ₹1.5 lakhs. Furthermore, both the interest earned and the maturity amount are tax-free.

Frequently Asked Question’s (FAQ’s)

1. Rules for premature withdrawal from SSY account

You can withdraw up to 50% of the amount in your Sukanya Samriddhi account for two reasons: marriage or higher education for the girl kid. If you withdraw funds for your child’s further education, the account holder must be 18 years old and have finished the tenth grade.

2. What happens if a lesser or excess amount is paid towards Sukanya Samriddhi Yojana scheme?

Lesser amount:  If the minimum payment of Rs.500 is not made in a fiscal year, the account is in default. However, the account can be restored to active status by paying a Rs.50 fine.
Excess amount: Any deposit over Rs.1.5 lakh earns no interest. The depositor has the option to withdraw the extra money at any time.

3. How to Invest in the Sukanya Samriddhi Yojana?

1. Go to the nearest Post Office.
2. Complete the application form with accurate information.
3. Along with the application form, provide any supporting documents and proofs.
4. The initial deposit can be made in cash, check, or demand draught

4. Can I take a loan against the balance in the SSY account?

You cannot obtain a loan against your SSY investments. However, money can be taken from SSY when your girl child reaches the age of 18. You can withdraw up to 50% of the previous year’s account balance (money in the SSY account)

5. Can I continue investing in SSY if my daughter and I move to another country?

No. NRIs are technically not permitted to invest in either. A girl child is only eligible for the Sukanya Samriddhi Scheme if she is a resident Indian citizen at the time of account opening and stays so until the account matures.

6. What is the penalty if I miss my SSY account minimum annual payment?

If the minimum deposit of ₹. 250 is not made in the account throughout the fiscal year, a penalty of Rs. 50 will be imposed.

7. Is there tax on SSY account interest?

The I-T Act grants SSY exempt-exempt-exempt status. Deposits made through the scheme are deductible under section 80C. The interest and maturity amount are also tax-free.