Sukanya Samriddhi Yojana ā How to Open Account (Guide
Complete guide to Sukanya Samriddhi Yojana. Interest rate, eligibility, how to open account, tax benefits, and withdrawal rules.
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What is Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme for the girl child, launched under the Beti Bachao, Beti Padhao campaign. It offers one of the highest interest rates among government savings schemes, along with tax benefits under Section 80C.
Key Benefits
- High interest rate: ~8.2% per annum (among the highest for risk-free instruments)
- Tax benefits: Investment qualifies for Section 80C deduction (up to ā¹1.5 lakh)
- Tax-free returns: Interest earned and maturity amount are fully tax-free (EEE status)
- Low minimum deposit: Just ā¹250/year
- Government-backed: Zero risk
- Girl child's financial security
Who is Eligible?
- Girl child below 10 years of age at the time of account opening
- Account opened by parent or legal guardian
- Maximum 2 accounts per family (one per girl child)
- Third account allowed only in case of twins/triplets (with proof)
- Only for resident Indian citizens
Account Details
| Feature | Details |
|---|---|
| Minimum deposit | ā¹250/year |
| Maximum deposit | ā¹1,50,000/year |
| Deposit period | Up to 15 years from opening |
| Maturity | 21 years from opening or girl's marriage (after 18) |
| Interest rate | ~8.2% p.a. (revised quarterly by government) |
| Tax benefit | Section 80C + tax-free interest + tax-free maturity |
Documents Required
For the Girl Child:
- Birth Certificate (mandatory)
- Aadhaar Card (if available)
For Parent/Guardian:
- Aadhaar Card
- PAN Card (for deposits above ā¹50,000)
- Address Proof (Aadhaar, Voter ID, passport, utility bill)
- Passport-size photographs (of guardian and child)
How to Open Account ā At Post Office
Step 1: Visit Nearest Post Office
Any India Post office that handles savings schemes.
Step 2: Get the SSY Account Opening Form
Ask for Sukanya Samriddhi Account form at the counter.
Step 3: Fill the Form
- Girl child's name and date of birth
- Parent/guardian's name and details
- Address
- Bank/post office details
Step 4: Submit Documents
- Birth certificate of girl child
- ID and address proof of guardian
- Photographs
Step 5: Make Initial Deposit
Minimum ā¹250, maximum ā¹1,50,000. Pay via cash, cheque, or demand draft.
Step 6: Account Opened
- Passbook issued on the spot
- Account number provided
- Start making annual deposits
How to Open Account ā At Bank
You can also open SSY accounts at authorized banks:
- SBI, PNB, BOB, Canara Bank, ICICI Bank, Axis Bank, HDFC Bank, and many others
The process is the same ā fill form, submit documents, make deposit.
Deposit Rules
- Minimum: ā¹250/year (if you deposit less, account becomes inactive)
- Maximum: ā¹1,50,000/year
- Deposit period: 15 years from account opening
- After 15 years: No more deposits needed; interest continues till maturity (year 21)
- Frequency: Deposit any time during the year ā monthly, quarterly, or lump sum
Withdrawal Rules
Partial Withdrawal (After Girl Turns 18)
- Up to 50% of the balance at the end of preceding financial year
- For higher education expenses
- Proof of admission required
Full Maturity
- Account matures 21 years after opening
- Or at the time of marriage after age 18 (early closure)
- Entire amount (deposits + interest) is tax-free
Premature Closure (Special Cases)
- Death of the girl child
- Life-threatening illness
- Change of citizenship
- Other extreme hardship (at the discretion of authority)
Tax Benefits (EEE ā Exempt-Exempt-Exempt)
| Stage | Tax Treatment |
|---|---|
| Deposit | Tax deduction under Section 80C (up to ā¹1.5 lakh) |
| Interest earned | Tax-free |
| Maturity amount | Tax-free |
SSY is one of the few instruments with complete EEE (Exempt-Exempt-Exempt) tax status.
Fees
| Service | Fee |
|---|---|
| Account opening | Free |
| Passbook | Free |
| Transfer between post office/bank | Free |
| Reactivation (if inactive) | ā¹50 penalty per year of default + minimum deposit |
Important Tips
- Open early ā The earlier you open (closer to birth), the more interest compounds over 21 years
- Maximize deposits ā ā¹1.5 lakh/year gets the best returns and maximum tax benefit
- Don't miss annual deposits ā Account becomes inactive if minimum ā¹250 not deposited; reactivation requires penalty
- Track interest rates ā Rate is revised quarterly; it's floating, not fixed
- This is long-term ā Money is essentially locked for 21 years; plan accordingly
FAQs
Q: What is the current interest rate for Sukanya Samriddhi Yojana? A: Approximately 8.2% per annum (revised quarterly by the Ministry of Finance). Check nsiindia.gov.in for the current rate.
Q: Can I open SSY account for a boy child? A: No. Sukanya Samriddhi Yojana is exclusively for girl children.
Q: What is the maximum age to open SSY account? A: The girl child must be below 10 years of age at the time of account opening.
Q: Can I withdraw money before maturity? A: Partial withdrawal (50%) is allowed after the girl turns 18, for education. Full withdrawal at maturity (21 years) or marriage (after 18).
Q: What if I can't deposit the minimum ā¹250 in a year? A: The account becomes inactive. To reactivate, pay ā¹50 penalty per year of default plus the minimum deposit for each defaulted year.
Q: Can I open SSY account online? A: Some banks (like SBI, ICICI) allow online account opening. Otherwise, visit the bank branch or post office in person.