Sukanya Samriddhi Yojana (SSY)

What is Sukanya Samriddhi Yojana?

The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme in India, introduced by PM Narendra Modi in 2014. It was launched to help parents save for their daughters’ higher education or marriage.

A parent with a girl child can enroll in this scheme until their daughter turns 10. An SSY account can only be opened in the name of a girl child at a post office or public or private sector banks. It’s best to open a Sukanya Samriddhi Yojana account in the same year a girl child is born because the account takes 21 years to mature from the date it is opened.

Anyone from a rich, middle, or lower class can easily opt for this scheme because the minimum and maximum amounts that can be deposited into an SSY account are ₹250 and ₹1,50,000 annually, respectively. Keep reading to know more about the Sukanya Samriddhi Yojana scheme.

Who Can Open a Sukanya Samriddhi Yojana Account?

A guardian can open the Sukanya Samriddhi Yojana account in the name of a girl child. Please note that an SSY account can only be opened in the name of a girl child at a post office or public or private sector bank. The age limit for opening an SSY account is up to 10 years of age for the girl child. However, the maturity age for the account is 21 years from the date it is opened.

How Does the Sukanya Samriddhi Yojana Work?

Let’s understand this with an example:

• Varun opened a Sukanya Samriddhi Yojana account for his 5-year-old daughter.
• He deposited ₹1.5 lakhs annually for up to 15 years.
• From the 16th year till maturity, he doesn’t need to deposit money.
• As per the Sukanya Samriddhi Yojana Interest Rate 2023-24, the rate is 8.2%.
• At maturity, he’ll receive approximately ₹65 lakhs (T&Cs apply).
• He can use the maturity amount to pay for his daughter’s higher education.

Where Can You Open a Sukanya Samriddhi Account?

An SSY account can only be opened in the name of a girl child at a post office or any authorized public (e.g., SBI or Bank of India) or private (e.g., HDFC, ICICI, or Axis) sector bank in India.

Steps to Open Sukanya Samriddhi Yojana Online:

1. Visit the State Bank of India’s official website.
2. Navigate to the "Investment and Deposit" section.
3. Under "Govt schemes," click on the Sukanya Samriddhi Yojana.
4. Scroll down and click on the revised form option.
5. The form will appear on your screen; fill out the SSY account opening form.
6. Attach the required documents: Aadhaar card, PAN Card, Girl's Birth Certificate, Photographs.
7. After that, pay the minimum deposit amount of INR 250.

How Much Money Can You Deposit in the Sukanya Samriddhi Scheme?

The minimum and maximum amounts that you can deposit in the Sukanya Samriddhi Yojana are:

• Minimum: ₹250 per year
• Maximum: ₹1,50,000 per year

The scheme offers the flexibility to make multiple deposits in a single year. If you’re making monthly payments to the SSY account, do it on or before the 5th of every month to ensure there is no loss of monthly interest.

How Many Times Can You Enroll in the Sukanya Samriddhi Yojana?

A girl child can only have a single account in her name under the Sukanya Samriddhi Yojana scheme. As per the rules, an SSY account can be opened for a maximum of two girl children by one parent. If twins were born as a second birth, or if the first birth resulted in twins, then three accounts can be opened.

When Can Parents Withdraw Money from a Sukanya Samriddhi Account?

In the Sukanya Samriddhi Yojana, parents can make partial or total withdrawals from the account for the following reasons:

• For Higher Education

  Parents can withdraw up to 50% of the total balance in their SSY account after a girl child turns 18 years old or passes the tenth standard, whichever is earlier. Please note that the withdrawal can only be used for education, and proof of admission must be shown at the time of withdrawal.

• For Marriage

  Parents or the daughter can also withdraw up to 100% of the balance in the SSY account after a girl child turns 18 years old or for her marriage.

• In Diagnosis of Life-Threatening Disease

  Parents can also withdraw up to 100% of the balance in the SSY account if a girl child is diagnosed with a life-threatening disease. To do so, the account should have completed at least 5 years.

Tax Benefit Under Sukanya Samriddhi Yojana Scheme

The Sukanya Samriddhi Yojana Scheme comes under the EEE Category. This means you’ll get a tax exemption on investment, returns, and maturity.

• Exempt: Get a tax exemption under section 80C when investing.
• Exempt: Interest income is exempt.
• Exempt: The maturity amount is also exempt.

Difference Between PPF (Public Provident Fund) and SSY (Sukanya Samriddhi Yojana)

Conclusion

The Sukanya Samriddhi Yojana (SSY) is a government-launched savings scheme that helps parents save for their daughters’ higher education or marriage. Apart from the impressive returns, you also benefit from the tax exemption with SSY because it comes under the EEE category. This means you’ll get a tax exemption on investment, returns, and maturity.

To learn about Sukanya Samriddhi Yojana or other government-backed schemes, call us today at 1800-4200-269 or visit our official website, PolicyX.com.