Post Office Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana (SSY) is a small investment scheme by the Ministry of Finance which is designed exclusively for a girl child. The main objective of investment in Sukanya Samriddhi Yojana is to encourage parents build a fund to meet the education and marriage expenses of a girl child. This scheme has been lauched to promote the welfare of girl child.
Snapshot of Sukanya Samriddhi Yojana Account
| Point | Details |
|---|---|
| Who can open? | Natural or legal guardian can open it for a girl child of age below 10 years |
| Investment Amount | Minimum Rs.250 & max. Rs.1.50 lakh in an FY |
| Interest Rate | 8.20% compounded annually w.e.f. 01.01.2024 to 31.03.2024 |
| Maturity Period | 21 years from the date of investment |
| Tax Benefit | Qualifies for deduction under section 80C of Income Tax Act |
Post Office Sukanya Samriddhi Yojana Features
- SSY was launched on 22nd January 2015 as a part of the Beti Bachao Beti Padhao campaign
- Account can be opened by the natural or legal guardian in the name of a girl child who has not attained the age of ten years as on the date of opening of the account
- Only one account can be opened in the name of a girl child.
- Passbook will be issued to customers
- One can transfer the SSY account anywhere in India from one post office to another post office or from one bank to another bank. It can be transferred from any post office to a bank or vice-versa anywhere in India
Post Office Sukanya Samriddhi Yojana Eligibility Criteria
- Sukanya Samriddhi Yojana account can be opened by the natural or legal guardian for a girl child of age below 10 years.
- The girl child must be a resident Indian.
- Depositor can open and operate only one account per girl child under the scheme rules.
- Natural or legal guardian of a girl child are allowed to open the account for upto two girl children.
- More than two accounts may be opened in a family if such children are born in the first or in the second order of birth or in both, on submission of an affidavit by the guardian supported with birth certificates of the twins/triplets regarding the birth of such multiple girl children in the first two orders of birth in a family.
Post Office Sukanya Samriddhi Yojana Documents Required
- Application in Form-1 for opening an account
- Birth certificate of the girl child in whose name the account is to be opened
Required Documents of Guardian
- Identity proof of applicant i.e. parent or guardian
- Address proof of applicant i.e. parent or guardian
- Other KYC proofs such as PAN and photograph.
- A medical certificate has to be submitted in case multiple children are born under one order of birth.
- Any other documents that are requested by post office or the bank.
Post Office Sukanya Samriddhi Yojana Interest Rate
Current interest rate is 8.20% for as of Q4 FY 2023-24 from 01.01.2024 to 31.03.2024 compounded annually. The scheme also offeres the option of monthly interest pay-outs which is calculated on balance in completed thousands.
Interest is paid even after maturity, if the account is not closed.
The interest rate of SSY account are notified by Ministry of Finance on quarterly basis. The SSY account will earn on the prescribed rate of interest.
Post Office Sukanya Samriddhi Yojana Investment Amount
Sukanya Samriddhi Yojana account can be opened in Post offices and in any branch of authorised banks. The account can be operated by the guardian till the account holder attains the age of 18 years. The account can be operated by the account holder herself after she attains the age of 18 years by submitting necessary documents.
Minimum of Rs.250 of initial deposit with multiple of Rs.50 thereafter with annual ceiling of Rs.1.50 lakh in a financial year. Any amount deposited above the maximum cap, i.e. Rs.1.50 lakh per year will not be provided any interest and can be withdrawn any time by the depositor.
Maximum period upto which deposits can be made is 15 years from the date of opening of the account. Amount can be deposited in the form of cash, cheque, demand draft , through standing instructions or through online transfers using internet banking.
Penalty: If the minimum amount of Rs.250 is not deposited in any financial year, a penalty of Rs.50 will be charged per year along with the minimum specified amount per year.
Post Office Sukanya Samriddhi Yojana Maturity Period
The SSY account will mature on completion of 21 years from the date of opening of the account, provided that where the marriage of the account holder takes place before completion of such period of 21 years, the operation of the account shall not be permitted beyond the date of her marriage.
The deposits need to be made only for 15 years from the date of opening of the account. The SSY account will earn interest until maturity, even if no contributions are made into it after 15 years.
Post Office Sukanya Samriddhi Yojana Premature Withdrawal Facility
To meet the financial requirements of the account holder for the purpose of higher education, account holder can avail partial withdrawal facility after attaining 18 years of age. SSY offers the facility to withdraw 50% of balance for higher education after attaining the age of 18 years or passing tenth standard, whichever is earlier.
Maximum one withdrawal can be made in a year (in a lump sum or in 5 instalments) subject to the ceiling specified and to the actual requirement of fee/other charges.
Post Office Sukanya Samriddhi Yojana Premature Closure
SSY account can be closed prematurely in the following occasions,
Marriage: The account can be prematurely closed in case of marriage of girl child after her attaining the age of 18 years. For closing the account prematurely, the account holder needs to submit an application between 1 month prior to marriage and 3 months after marriage along with her age proof documents.
Death: In case of death of girl child, Sukanya Samriddhi Account is closed. In this case, all the proceeds in the SSY account are transferred to the parent or guardian of the girl child.
Medical Treatment: In case of life-threatening diseases of the girl child.
Hardship in Operating Account: The girl child or guardian may request an early closure of the SSY account after 5 years from the account opening date, provided that the post office or bank is satisfied that the operation or continuation of the SSY is causing the girl child significant difficulty for the reason such as guardian's death, the girl child's medical conditions, etc.
Post Office Sukanya Samriddhi Yojana Taxation
Income tax exemption under section 80C of Income Tax Act is allowed on Sukanya Samriddhi Yojana investments up to Rs 1.50 lakh per financial year.
Interest earned in the account is free from Income Tax under Section 10 of I.T.Act.
SSY scheme provides "Triple exempt benefits" (EEE) i.e.
- There will be no tax on the amount invested
- No tax on interest earned
- No tax on amount withdrawn
How to Open Sukanya Samriddhi Yojana (SSY) Account?
Sukanya Samriddhi Yojana (SSY) account can be opened at any post office or participating bank branch. Outlined below is the stepswise process to open SSY account.
- Visit the post office or the bank in which you want to open the Sukanya Samriddhi Yojana (SSY) account.
- Obtain the application form "Form-1" for opening the Sukanya Samriddhi Yojana (SSY) account.
- Fill out the application form with the necessary details
- Attach all the required documents.
- Pay the first deposit in cash, checque or demand draft. The deposit should be in the range from Rs.250 to Rs.1.50 lakhs.
- Your application and payment will be processed by the post office or the bank.
- After processing, your SSY account will be activated.
- A passbook will be given to the account holder after the account is opened.