Sukanya Samriddhi Yojana – Comprehensive Guide

The Sukanya Samriddhi Yojana Account (SSA) was introduced in 2016 as a special government initiative targeting girls under the age of 10. This central government scheme provides a secure savings option with the assurance of a sovereign guarantee. Upon maturity of the account after 21 years from the opening date, the account holder will receive the accumulated funds.

Key Features of Sukanya Samriddhi Yojana

If you’re considering investing, the Sukanya Samriddhi Yojana Account (SSA) offers several noteworthy advantages. Unlike popular government schemes and even regular savings accounts or fixed deposits provided by banks, the SSA account provides higher returns.

In the fiscal year 2021-22, the interest earned on a regular savings account in India ranged between 3.00% to 3.20% for public sector banks, while fixed deposits offered up to 5.50% interest for a five-year investment. In contrast, the SSA scheme offers a generous 8% return per annum.

Before you decide to invest, here’s a comprehensive guide to help you navigate the Sukanya Samriddhi Yojana Account (SSA).

Eligibility

To open a Sukanya Samriddhi Yojana (SSA) account, the guardian of a girl child below 10 years of age can visit any post office branch or authorized banks. Families with two girls or twins/triplets can open a maximum of two accounts, provided they submit the necessary birth documents from a recognized medical authority. Non-resident Indians (NRIs) are not eligible to open an SSA account.

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Investment

Investing in an SSA account begins with an initial minimum deposit of INR 250, with subsequent payments made in multiples of INR 50. The maximum investment per financial year should not exceed INR 1,50,000. The deposit matures after 15 years from the date of opening the account. Therefore, for a 5-year-old child, deposits must continue until the child turns 20.

Rate of Interest

The Sukanya Samriddhi Yojana (SSA) offers a fixed interest rate of 8% per annum, determined by the Ministry of Finance on a quarterly basis in each fiscal year. The interest earned is credited to the depositor’s account at the end of the financial year. This rate has remained unchanged for over two years. In the fiscal year 2019-20, the SSA account provided a return on investment (ROI) of 8.60%.

Partial Withdrawal

Under the SSA scheme, the account holder is permitted to withdraw up to 50% of the deposit when they reach 18 years of age or have successfully completed the 10th standard.

Premature Account Closure

In case of emergencies, the unfortunate event of the beneficiary’s or account holder’s (guardian’s) death, or for marriage purposes after attaining 18 years of age, premature closure of the deposit is allowed. The post office or bank will facilitate the closure and release the deposit along with the accrued interest upon submission of the required proof.

Closure on Maturity

The Sukanya Samriddhi Yojana (SSA) account reaches maturity after 15 years of its opening. It is important to note that an account will be considered in default if it has not maintained a minimum balance of INR 250 in a given fiscal year.

Taxation

As per Section 80C of the Income Tax Act, 1961, depositors can avail tax deduction on the interest earned, provided it does not exceed INR 1.50 lakh per financial year.

Transfer of Account

The SSA account allows for the transfer of funds between post offices and banks, as well as between different banks, ensuring convenience and flexibility for the account holder.

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Steps to Open an SSA Account

To open a Sukanya Samriddhi Yojana (SSA) account, follow these simple steps:

Visit Your Point of Account Opening

You can open an SSA account by visiting any post office branch or authorized banks. Many public and private sector banks allow SSA account holders to make recurring deposits electronically. However, if you choose to open an account at the post office, deposits must be made by physically visiting the branch.

Carry Required Documents

The documentation process for opening an SSA account is straightforward. The guardian who opens the account must carry the following documents:

• Proof of Age: Guardian’s PAN card.
• Proof of Address: Guardian’s Aadhaar card.
• Proof of Identity: Passport, driving license, Voter’s ID card, Job card issued by NREGA.
• Birth certificate of the beneficiary (girl child).
• Nominations are also accepted upon submission of the necessary documents.

Submit Your Application Form

To open an SSA account for a girl child below 10 years of age, the guardian can choose to use their own savings bank account or visit an authorized bank or post office. Application forms can be downloaded online or obtained from the post office branch. It is crucial to thoroughly understand the benefits, terms, and conditions of the SSA account before submitting the application form along with the required documents.

Collect Your Passbook

After the account is successfully opened, the guardian will receive a passbook by post. The passbook will contain important information, including:

• Name, address, and date of birth of the account holder
• Date of account opening
• Account number
• Name and address of the guardian
• Guardian’s relationship with the account holder
• Amount deposited

The guardian can choose to maintain the financial records of the account electronically if the post office or bank offers online banking solutions. This provides a convenient way to track and manage the account.

Bottom Line

The Department of Economic Affairs, operating under the Ministry of Finance, has the authority to issue notifications regarding any modifications to the Sukanya Samriddhi Yojana account. These notifications are issued under Section 3A of the Government Savings Promotion Act, 1873. The most recent notification, G.S.R. 914(E), establishes the Sukanya Samriddhi Account Scheme, 2019.

It is important to stay informed about any updates or changes to ensure compliance with the latest regulations and to make the most of the benefits provided by the Sukanya Samriddhi Yojana.

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