Under the Beti Bachao Beti Padhao (BBBP) scheme, the Indian government has further launched the Sukanya Samriddhi Yojana (SSY), a government-backed savings scheme for the girl child in Indian families. The scheme can be opened by the guardians of a girl child under 10. The scheme comes with a tenure of 21 years or until the girl child gets married.
With the alarming rate of female infanticide that spiked in India, it was the hour’s need to take immediate action against such crimes. It was then that the Indian government, with the active participation of the Ministry of Women and Child Development, the Ministry of Health and Family Welfare, and the Ministry of Human Resource Development, started the popular Beti Bachao Beti Padhao (BBBP) campaign in 2015.
This article explores the features, objectives, plan details, and interest rates associated with the SSY campaign and how you can apply.
In this Article
- 1 Sukanya Samriddhi Yojana (SSY) Plan Key Details
- 2 What is the Sukanya Samriddhi Yojana scheme?
- 3 SSY or Sukanya Samriddhi Yogana: Eligibility criteria
- 4 SSY Account Interest Rates
- 5 SSY or Sukanya Samriddhi Yogana Scheme: Benefits
- 6 SSY or Sukanya Samriddhi Yogana: Key Features
- 7 Do we Have an Option to Prematurely Close SSY Account?
- 8 How to Open SSY Account?
- 9 FAQs
- 10 Conclusion
Sukanya Samriddhi Yojana (SSY) Plan Key Details
|Interest Rates (Updated)||7.6% per annum|
|Maturity Period||21 years or until the girl child marries after the age of 18|
|Minimum Deposit Amount Per Year||Rs. 250|
|Maximum Deposit Amount Per Year||Rs. 1.5 Lakh|
|Eligibility||Parents or legal guardian of a girl child aged below 10 years can open the SSY account in the name of the girl child|
|Income Tax Rebate||Eligible for income tax rebate under section 80C up to Rs 1,50,000 per year|
What is the Sukanya Samriddhi Yojana scheme?
The Sukanya Samriddhi Yojana scheme is part of the BBBP campaign released in 2015. This is to support the parents or the guardians of the girl child in a family who want to secure their future in terms of financial background.
Under the scheme, the parents can plan a secure investment plan under the government for the future of their girl child. The minimum investment amount per month starts from Rs. 250, and the maximum annual investment is Rs. 1,50,000. The scheme is accessible via public and private banks and post offices.
Parents with a girl child under the age of 10 can apply for the scheme and avail of the benefits later in life. The plan matures after 21 years. The last recorded interest rates in Q3 of 2021-22 were recorded at 7.6%. However, the interest rates are subject to change.
SSY or Sukanya Samriddhi Yogana: Eligibility criteria
If you consider investing your money in the SSY scheme, specific eligibility criteria are worth considering. They include:
- Only the parents or legal guardians of a girl child can apply for the savings scheme under the laws and regulations.
- The applicant (girl child) should be less than or 10 years old at the time of account opening.
- The scheme is limited to one account per girl child in the family.
- Each family can have a maximum of two SSY scheme savings account (one for each girl child). The only exception is if twin siblings follow a girl child or if a family has triplet daughters. Only then a third account will be allowed under the scheme.
SSY Account Interest Rates
The SSY scheme offers 7.6% interest rate annually in the financial year 2021-22, which is higher than the banks’ fixed deposit and other small savings schemes. Also, the scheme is backed by the Indian government, which ensures optimal safety and security of your money. Your girl child will get a guaranteed return of the investments upon maturity.
Here are the historic interest rates of Sukanya Samriddhi Yojana
|Year||Interest Rate (%)|
|1 April 2020 to 30 June 2021||7.6|
|1 January 2020 – 31 March 2020||8.4|
|1 April 2019 – 30 June 2019||8.5|
|1 January 2019 – 31 March 2019||8.5|
|1 October 2018 – 31 December 2018||8.5|
|1 July 2018 – 30 September 2018||8.1|
|1 April 2018 – 30 June 2018||8.1|
|1 January 2018 – 31 March 2018||8.1|
|1 October 2017 – 31 December 2017||8.3|
|1 July 2017 – 31 September 2017||8.3|
|1 April 2017 – 30 June 2017||8.4|
|1 January 2017 – 31 March 2017||8.5|
|1 October 2016 – 31 December 2016||8.5|
|1 July 2016 – 30 September 2016||8.6|
|1 April 2016 – 30 June 2016||8.6|
|From 1 April 2015||9.2|
|From 1 April 2014||9.1|
SSY or Sukanya Samriddhi Yogana Scheme: Benefits
The Sukanya Samriddhi Yojana scheme is part of the Beti Bachao, Beti Padhao social scheme, introduced by the Prime Minister of India, Narendra Modi. The scheme’s primary objective is to secure the future of the girls in Indian families.
Under the SSY scheme, both the parents and the girl child can avail multiple benefits, including:
SSY Account Tax Benefits
The investments via the SSY scheme are backed under Section 80C of the I-T Act and are subject to tax benefits. The maximum amount for that is Rs. 1,50,000.
Flexible investment options
The minimum investment amount per month under this scheme is Rs. 250, and the maximum annual deposit is Rs. 1,50,000. This allows everyone to have the scope to invest and secure their girl child’s future.
The beneficiary gets to enjoy the power of compounding under this scheme. Since this is a long-term investment scheme, the money grows as the years pass. Thus, the return on investment is relatively high.
Easy transfer upon maturity
Lastly, once the invested amount matures after 21 years of tenure, the maturity amount (with interest) is directly transferred to the linked account. It could be the bank account, or the post office savings account.
SSY or Sukanya Samriddhi Yogana: Key Features
Besides the basic features, there are some other factors worth knowing about this savings scheme.
- If the SSY account holder doesn’t pay Rs, the minimum deposit amount. 250, the account will be termed as “default.” The only way to revive a dormant account, pay Rs. 250 plus an additional Rs. 50.
- Once the applicant (girl child) turns 18, they can operate their account independently. There are some essential documentation and verifications needed for that, after which the girl child can run the account.
- Once the girl is 18 years older, 50% of the saved amount can be withdrawn for higher education or other allied expenses, including marriage. However, a maximum of one withdrawal is allowed in a year.
Do we Have an Option to Prematurely Close SSY Account?
Besides needing the money for marriage expenses or higher education after the age of 18, other criteria support premature withdrawal of the invested money in the SSY scheme. They include:
- The untimely death of the account holder
- Unable to continue the investments in the scheme
There are a lot of criteria that are assessed for premature closure of the account. Only in extreme cases will you get the grant to close the account and withdraw the invested money before the 21 years tenure.
How to Open SSY Account?
The Sukanya Samriddhi Yojana is available under public and private banks and in your nearby post offices too. The investors should check the eligibility criteria first, and if everything matches, pick up the application form from the bank or post office.
You can open SSY account via:
- Public sector banks like SBI, PNB, BoB, Canara Bank etc.
- Private sector banks like Axis Bank, ICICI Bank, HDFC Bank, etc.
- Indian Post Office
Documents Required to Open SSY Account
Once you have the application form, fill in the required details and submit the documentation needed for the account opening. The required documentation for the application include:
- Birth Certificate details of the primary account holder
- ID Details of Parent/Guardian (Driving License, Aadhaar, etc.)
- Present and Permanent Address
- Details of any other KYC Documents (PAN, Voter ID card, etc.)
You need to attach the photocopy of these documents with the application form for further verification by the financial institution.
If you have been meaning to invest under the Sukanya Samriddhi Yojana, we hope this article gives you all the insights that you need. Ensure that you read through the fine print, check the eligibility criteria, and invest in a disciplined way to secure your girl child’s future financially. The scheme’s interest rates are promising and compound to grow your money at a linear and dynamic rate.