Sukanya Samriddhi Yojana: Key Features, Eligibility, Benefits, Check Balance

Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme aimed at securing the future of a girl child in India. Launched under the ‘Beti Bachao, Beti Padhao’ initiative, it is one of the most popular schemes for parents to ensure financial support for their daughters’ education and marriage. This guide will help you understand the Sukanya Samriddhi Yojana and how it works.

What is Sukanya Samriddhi Yojana- Key Features

Sukanya Samriddhi Yojana (SSY) is a savings scheme for girl children. It allows parents or guardians to open a savings account for their daughter, which earns a high rate of interest. The funds can be used for the girl’s higher education and marriage. It also provides tax benefits under Section 80C of the Income Tax Act.

Eligibility for Sukanya Samriddhi Yojana

To open an SSY account, certain eligibility criteria must be met:

• The account can only be opened in the name of a girl child.
• The girl should be under 10 years of age at the time of opening the account.
• A family can open only two SSY accounts, one for each daughter. In the case of twins or triplets, this limit is extended.

How to Open a Sukanya Samriddhi Account?

Opening an SSY account is simple. Here’s how you can do it:

• Visit your nearest post office or authorized bank.
• Fill out the Sukanya Samriddhi Yojana application form.
• Submit the required documents like the birth certificate of the girl child, proof of identity, and proof of address.
• Deposit a minimum amount of Rs. 250 to open the account.

Once the process is complete, you will receive a passbook, which will keep track of the account balance and transactions.

Documents Required for Sukanya Samriddhi Yojana

To open an SSY account, you will need the following documents:

• Birth certificate of the girl child.
• Proof of identity (Aadhaar card, PAN card, etc.) of the parent or guardian.
• Proof of residence (electricity bill, passport, etc.).
• Recent passport-size photographs.

Minimum and Maximum Deposit in Sukanya Samriddhi Yojana

The SSY account requires a minimum deposit of Rs. 250 per year. The maximum deposit allowed per year is Rs. 1.5 lakhs. You can deposit money in the SSY account through cash, cheque, demand draft, or online transfer (if your bank offers this facility).

Interest Rate on Sukanya Samriddhi Yojana

The interest rate for SSY is decided by the government and is revised quarterly. As of the current financial year, the interest rate is 8% per annum. The interest is compounded annually, which makes it an attractive savings option for long-term goals like education and marriage.

Duration of Sukanya Samriddhi Yojana

The Sukanya Samriddhi Yojana account has a maturity period of 21 years from the date of opening. However, contributions need to be made for only 15 years. After that, the account will continue to earn interest until maturity. Once the girl reaches 18 years of age, she can use the funds for education or marriage.

Premature Withdrawal from Sukanya Samriddhi Account

While the SSY account is meant for long-term savings, premature withdrawals are allowed in certain cases:

• Up to 50% of the balance can be withdrawn for the girl’s education once she turns 18.
• Premature closure is allowed in the event of the account holder’s death or on compassionate grounds like a life-threatening illness.

Maturity Benefits of Sukanya Samriddhi Yojana

At maturity (21 years from the opening date), the entire balance including interest is paid to the account holder (the girl). There are no taxes on the maturity amount, making it a tax-free income.

Sukanya Samriddhi Yojana Tax Benefits

SSY offers several tax benefits under Section 80C of the Income Tax Act:

• The deposits made in the SSY account qualify for a tax deduction of up to Rs. 1.5 lakhs per year.
• The interest earned and the maturity amount are also tax-free, making it an EEE (Exempt-Exempt-Exempt) investment.

Sukanya Samriddhi Account Transfer

If you move to another city or state, you can transfer the SSY account from one post office or bank to another. The transfer process is simple:

• Visit the branch where the account was originally opened.
• Fill out the account transfer form and submit it with the necessary documents.
• The account will be transferred to your new location without any hassle.

Benefits of Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana offers several benefits:

• High interest rates compared to other savings schemes.
• Long-term savings plan that ensures financial security for your daughter’s future.
• Triple tax benefits (deposit, interest, and maturity amount).
• Flexible deposits (from Rs. 250 to Rs. 1.5 lakhs per year).
• Easy to open and manage through post offices and banks across India.

How to Check Sukanya Samriddhi Yojana Account Balance?

You can check the SSY account balance in the following ways:

• Visit your post office or bank and update your passbook.
• If the bank offers online banking, you can log in to your account and view the balance.
• Some banks also provide mobile app services to check the balance instantly.

Frequently Asked Questions (FAQs)

Conclusion

Sukanya Samriddhi Yojana is an excellent savings scheme for parents looking to secure their daughter’s future. With its high interest rates, tax benefits, and flexibility, it is one of the best financial options available for Indian families. Make sure to start early and take full advantage of this scheme to ensure that your daughter has the financial support she needs for her education and marriage.