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Sukanya Samriddhi Yojana 

Sukanya Samriddhi Yojana

The Indian government launched the Sukanya Samriddhi Yojana, a small savings program, with the goal of improving the well-being of girls. This initiative, which is a part of the “Beti Bachao Beti Padhao” campaign, offers tax advantages and a high rate of return to parents who invest in their daughters’ long-term welfare.

This article will cover all you need to know about the Sukanya Samriddhi Yojana, from its eligibility conditions to its benefits and drawbacks.

Who is eligible to open an account under Sukanya Samriddhi Yojana?

The criteria for opening an SSY account are simple to fulfill. Anybody who is a parent or guardian may open an account on their daughter’s behalf. The girl child must be under 10 years old when the account is started. Furthermore, only two accounts are permitted per family, and new accounts may be opened at any authorized bank branch or post office in India.

How to open a Sukanya Samriddhi Yojana account?

You have to The Sukanya Samriddhi Yojana is offered by some banks and post offices.

filled out the account opening papers with the necessary information, including the girl’s name, age, legal guardian or parents’ names, and copies of identification documents, and

submit the account opening form along with the required documentation.

An initial investment of at least Rs. 250 is required.

You will receive a passbook with the account information when the account is established.

What is the minimum and maximum investment limit under Sukanya Samriddhi Yojana?

The minimum investment required to start a Sukanya Samriddhi Yojana account is Rs. 250, while the annual maximum investment allowed is Rs. 1.5 lakh. Deposits, which should be made in multiples of 100 rupees, can be done using cash or cheques.

What is the interest rate offered by Sukanya Samriddhi Yojana?

The Indian government updates the Sukanya Samriddhi Yojana’s interest rate every three months. The interest rate given from January through March 2022 is 7.6% annually. At the conclusion of each fiscal year, the interest is credited to the account and is compounded yearly. The program provides one of the highest interest rates among all Indian modest savings programs.

What is the maturity period of the Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana’s time of fruition is 21 years from the beginning of the account’s formation. Nevertheless, partial withdrawals may be made once the girl child becomes 18 or after she completes her 10th grade of education, whichever comes first. These withdrawals may be used to pay for expenses associated with higher education or wedding celebrations.

Can partial withdrawals be made from the Sukanya Samriddhi Yojana account?

Understanding Partial Withdrawals from SSY Account

The program’s rules provide that once a female child turns 18, the account holder may withdraw up to 50% of the account’s remaining funds from the end of the previous fiscal year for additional schooling or marriages. This implies that the maximum withdrawal amount is Rs. 1 lakh, even if the account balance at the end of the prior fiscal year was Rs. 2 lacks.

Conditions for Making Partial Withdrawals

The conditions that must be fulfilled by the account holder before they can make a partial withdrawal from their SSY account:

Minimum Tenure of 5 Years

Half withdrawals are only allowed if the account has been open for at least five years. The first partial withdrawal can only be made when the female child is 15 years old if the account was opened when she was 10 years old.

Purpose of Withdrawal

Only for the purpose of marriage or further study is it possible to make partial withdrawals. The account holder must provide pertinent documentation to support the withdrawal’s intent.

Withdrawal Amount Limit

50% of the account balance at the end of the previous financial year is the maximum withdrawal amount. Even if the balance in the account has increased during the current financial year, the account holder is not permitted to remove more than this amount.

What are the tax benefits of investing in Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana (SSY) investments come with a number of tax advantages. 

  1. Section 80C of the Income Tax Act of 1961 allows payments made to SSY to be deducted. Under this clause, a deduction of a maximum of Rs. 1.5 lakh per fiscal year may be made.
  2. Interest on the SSY account balance is not subject to taxation. This implies that the account holder’s taxable income does not include the interest earned.
  3. Tax exemption also applies to the maturity amount or the amount removed from the SSY account. This indicates that the account holder’s full payment, including the principal and interest collected, is tax-free.

It is important to remember that there are restrictions on tax benefits. For instance, the female child’s name must be on the account, and the child’s parents or legal guardians must make the payments. The tax benefits are only available to Indians who really are residents; non-residents are not eligible.

Sukanya Samriddhi Yojana is a well-liked investment choice among parents trying to make plans for the future of their daughters since it offers major tax benefits in addition to good returns.

What are the drawbacks of Sukanya Samriddhi Yojana?

Here are 5 top drawbacks of Sukanya Samriddhi Yojana:

Limited flexibility: The investment made in SSY cannot be withdrawn prior to the maturity term, with the exception of specified conditions, due to the lock-in duration of 21 years. Those who may require the money before the maturity period is up may find this lack of flexibility to be a drawback.

Limited availability: Only girls under the age of 10 are eligible to create SSY accounts. This limits the target audience for the program’s availability.

Limited contribution: A maximum of Rs. 1.5 lakh may be invested in SSY per fiscal year. This might not be enough for many parents who wish to put additional funds into their daughter’s savings for the future.

Fixed interest rate: The government fixes and chooses the interest rate for SSY. Although there is a fixed return with this, it might not be as appealing as alternative investment options with variable interest rates and possibly larger returns.

A penalty of Rs. 50 per year is imposed if the SSY account’s minimum contribution of Rs. 250 each fiscal year is not made. The investment’s returns may suffer as a result.

How to transfer a Sukanya Samriddhi Yojana account?

Transferring Moving a Sukanya Samriddhi Yojana (SSY) account from one post office or bank to another is simple The following are the steps:

Acquire the transfer form: The current post office or bank where the account is situated must provide the account holder with the transfer application form.

Complete the transfer form: The name of the account holder, the account number, and information about the current post office or bank where the account is situated must all be filled out on the transfer form.

Deliver the transfer form: The transfer form must be completed and sent to the current post office or bank where the account is located.

The transfer request will be processed: Initiating the transfer request procedure and sending the account details and balance to the new post office or a bank is the current post office and bank, accordingly.

The account holder will receive a confirmation of the transfer: The account holder will be notified when the transfer is finished, and the account will be kept at the new post office or bank.

It is important to remember that there can be a little fee associated with moving the SSY account. Moreover, the transfer can only be done to a post office or bank that offers SSY accounts. Hence, before starting the transfer procedure, it is important to inquire about the availability of SSY accounts with the new post office or bank.

Can the Sukanya Samriddhi Yojana account be closed prematurely?

When a girl child turns 21 years old after the account was first opened, the SSY account becomes mature. On account maturity, the account holder may withdraw the entire balance, including interest. Nevertheless, if the female kid marries after turning 18, she may withdraw half of the remaining funds for the wedding. The account may be closed and the whole money paid to the legal heirs in the terrible event of the female child’s death.

What happens, though, if the account holder decides to shut the account too soon?

The government has only permitted early closure of the SSY account in a few unusual circumstances, such as when the account holder dies or when there are extremely compassionate reasons, like providing medical care for a terminal sickness or life-threatening condition.

Mostly in event of death, the account may be closed and the whole balance paid to the account owner’s legal heirs. The account may be canceled and the whole sum given to the account holder if it is determined that the female child has a fatal illness or another life-threatening condition.

However, But, it is not allowed to immediately close the SSY account for any other justifications, such as monetary emergencies or for any other uses. To guarantee that the scheme’s goal of giving female children long-term financial stability is not compromised, the government has established this provision.

What happens if the account holder passes away before the maturity of the account?

A Sukanya Samriddhi Yojana (SSY) account may be prematurely closed if the account holder dies before the account reaches maturity. The account will be closed in this case, and the accumulated funds will be paid to the account holder’s legal heir or nominee.

The bank or post office where the account is held must receive the required paperwork from the legal heir or nominee along with a request for the account to be prematurely closed. The list of documents needed varies depending on the bank or post office but often includes the account holder’s death certificate, a statement of the legal heir or nominee, and identification and address verification for the legal heir or nominee.

The collected funds in the account will be distributed to the nominated legal heir or beneficiary when the filed and validated documentation have been received. It is crucial to remember that there will be a fee if the account is prematurely closed before the maturity time. Although the penalty may differ from bank to bank, it normally entails a 1.5% reduction from the total amount.

It’s important to remember that the following overview will be allocated to the nominees in the order the account holder has chosen if they are among the many nominees the account holder has named. If the account holder chooses a ratio, the applicants will each get an equal share of the funds.

Sukanya Samriddhi Yojana account can be closed early if the account holder dies before the maturity term and the accumulated funds would be handed to the legal successor or nominee after a penalty has been deducted. It is crucial to submit the required paperwork and adhere to the process outlined by the bank or post office where the account is housed.

Can a non-resident Indian (NRI) open a Sukanya Samriddhi Yojana account?

Yes, as long as the account is started within a year of the daughter’s birth or adoption, a non-resident Indian (NRI) may register a Sukanya Samriddhi Yojana (SSY) account for their child.

By going to any authorized bank or post office branch in India, NRIs can open an SSY account. They will need to present the required paperwork, including the daughter’s birth certificate or adoption papers, their passport, and evidence of their NRI status.

It’s significant to remember that NRIs cannot contribute to their SSY accounts online. They must transfer the funds from their NRE or NRO account using a check or draught in Indian rupees. The Central Bank of India’s (RBI) guidelines for NRI transactions apply to the contributions made to the SSY account.

Under Section 80C of the Income Tax Act of 1961, NRIs may also be eligible for tax advantages on donations made to SSY accounts. The SSY account’s interest, however, is taxable in India.

The SSY account can still be used if an NRI decides to live in India permanently, but they will need to notify the bank or post office of their change in status from NRI to resident Indian. The bank or post office would also want their Indian address and PAN information.

What are the documents required to open a Sukanya Samriddhi Yojana account?

To open a Sukanya Samriddhi Yojana (SSY) account, the following documents are required:

1. Birth certificate of the girl child: The female child’s birth certificate is necessary to confirm her age and eligibility to create an SSY account. The adoption certificate must be presented in cases of adoption.

2. Identity proof of the guardian: The guardian, who can be either the girl child’s parents or legal guardian, needs to submit their identity proof such as an Aadhaar card, passport, PAN card, or voter ID card.

3. Address proof of the guardian: The guardian must provide identification documentation, such as an Aadhaar card, passport, PAN card, or voter ID card. The guardian may be the female child’s parents or the girl child’s legal guardian.

4. Photographs: The guardian and the female child must each have two passport-size photos submitted with the application.

It is important to keep in mind that the following documents must be valid and self-attested copies. When submitting an application for an SSY account, it is advised to verify with the particular institution because certain banks or post offices could need extra paperwork.


A well-known savings program called the Sukanya Samriddhi Yojana was created to help parents save money for their daughters’ future education and marriage costs while also giving them financial stability. The program offers tax advantages under section 80C of the Income Tax Code together with a high-interest rate that is compounded yearly. While partial withdrawals are permitted for educational and marriage-related expenses, early account closure for any other purposes is not permitted.

In order to protect the scheme’s goal and to incentivize parents to set aside money for their daughter’s long-term financial stability, the government has included this provision. To maximize the benefits of the program, it is thus advised to keep the account open until maturity.

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