The Sukanya Samriddhi Yojana, a visionary initiative by Prime Minister Narendra Modi, is a pivotal part of the empowering Beti Bachao, Beti Padhao campaign. Launched on January 22, 2015, in Panipat, Haryana, this scheme directly addresses the pressing social issue of girl children’s education and future marriage expenses in India.
By focusing on these areas, the scheme not only enhances the welfare and status of girls but also provides families with a strong sense of financial security. It enables them to support their daughters’ education and make substantial preparations for their eventual marriage expenses, ensuring a secure future for their daughters.
This initiative is a testament to the government’s commitment to transforming societal attitudes and elevating the role of women through targeted developmental strategies.
Features of Sukanya Samriddhi Yojana
Some of the significant features of Sukanya Samriddhi Yojana are mentioned below-
1. Less Minimum Deposit
The Sukanya Samriddhi Yojana requires a modest minimum deposit of just Rs. 250 per fiscal year, making it an affordable and accessible savings
segment of society. This low threshold ensures that the scheme is economically feasible for every family, regardless of their financial standing. The account is not suspended or closed if a payment is missed during a particular year. Instead, it remains active, accumulating interest, with a nominal penalty of only Rs. 50 for that year.
This lenient approach towards missed payments ensures that the account holders are not unduly penalised and can continue to benefit from the scheme despite occasional financial challenges, providing comfort and flexibility. This flexibility allows families to adapt to their economic situations without fearing losing their savings.
2. High Compound Interest Rate
This scheme has one of the highest compound interest rates among the prevalent small savings schemes because it comprises an 8 % per annum compound interest rate.
3. Smart Investment
The Sukanya Samriddhi Yojana offers attractive interest rates and tax benefits. Under this scheme, the interest and the maturity amount remain free of taxation. Moreover, one can enjoy a complete tax reduction on the principal up to Rs. 1.5 lakh annual amount as per Section 80C of the Income Tax Act. It makes the scheme a wise investment option, ensuring your savings grow without tax burden.
By investing in this scheme, you’re saving for the future and making a smart financial move that minimises your tax liabilities.
4. Coverage of Costs of Education
Under the provisions of this scheme, both the interest accrued and the amount received upon maturity are exempt from taxes, providing a significant financial benefit to the subscribers. Additionally, participants in the scheme can enjoy a full tax deduction on the principal amount invested, up to Rs. 1.5 lakh per annum per Section 80C of the Income Tax Act.
This tax benefit enhances the scheme’s appeal, making it an attractive savings vehicle that secures future financial needs related to a girl child’s education and marriage. It also provides fiscal advantages to the contributors during their income tax assessments.
5. Lengthy Tenure
One can remain assured regarding their daughter’s future because of the 21-year maturity period or up until her wedding after 18 years of age (whichever occurs earlier).
6. Assured Returns
There is a heightened sense of security regarding the returns one can expect upon maturity of this scheme, as the government fully backs it. This governmental support guarantees that the promised benefits will be delivered when the account matures, providing account holders with a reliable and secure investment option.
This assurance is particularly comforting to investors, knowing that their contributions are safeguarded and will yield the expected financial benefits under the stable auspices of government oversight.
7. Convenient Transfer
This account offers the flexibility of being transferred between different financial institutions nationwide. It can be moved from any bank to a postal office or vice versa, allowing for seamless portability no matter where in India one might relocate.
This feature ensures that account holders can manage their savings conveniently and maintain the continuity of their investment, regardless of their geographical mobility. In urban centres or rural locales, the ability to transfer the account ensures that participants can continue accruing benefits without interruption.
How to Apply for Sukanya Samriddhi Yojana?
In order to apply for Sukanya Samriddhi Yojana, you must follow the steps mentioned below-
- First, you need to download the application form from the official website of the RBI, the Indian Post website, and the public or private sector.
- Then, you must fill in the details of the girl child and her parents or legal guardian in an allotted form.
The below mentioned are the crucial compulsory fields to be filled in the form of this scheme:
- Primary Account Holder – Name of Girl Child
- Joint Holder – Name of A parent or legal guardian
- Initial deposit amount
- The cheque/DD Number and Date for the initial deposit
- Date of Birth of girl child along with Birth Certificate details
- Provide the identity of the parent or legal guardian, such as a Driver’s license, Aadhaar, etc.
- Present and permanent address (as per the ID document of the parent or legal guardian)
- Details of other KYC proofs such as PAN, Voter ID card… etc.
- You must pay the first deposit in cash, cheque, or demand draft; this payment can vary from Rs. 250 to Rs. 1.5. Lakh.
- Then, your application, as well as the payment that you have made, shall be processed by either the concerned bank or the post office
- After the processing, your Sukanya Samriddhi Yojana account will be activated, and a passbook will be given to celebrate its opening.
Who is Eligible for Sukanya Samriddhi Yojana?
Eligibility parameters for Sukanya Samriddhi Yojana.
The significant points pertaining to eligibility are mentioned below-
- A parent or a legal guardian of the girl child can open the account.
- The girl child ought to be under ten years of age.
- The girl child will be permitted only a single account.
- A family can strictly open two Sukanya Samriddhi Yojana schemes.
What are the Key Documents Required?
One can apply to the post office or a public or private bank to invest in this scheme. They are required to submit certain documents and adhere to the process as detailed below:
- Submit the birth certificate of the girl child
- Submit the photo ID of the parent or the legal guardian of the applicant
- Submit the address proof of the applicant’s parent or legal guardian
- Submit the other KYC proofs, i.e. PAN, Voter ID…etc.
How can you Open a Sukanya Samrddhi Yojana Account Online?
To make online payments to the account under this scheme, you must download the IPPB app on your smartphone. Then, you can use the app to establish instructions for depositing a particular amount online into your account.
If you wish to make payment for this scheme through the online method, then please follow the below-mentioned steps:
- You should transfer your money from your bank account to the IPPB account.
- Then, you need to go to the DOP Products on the said app and opt for the SSY account.
- Then, you type your Sukanya Samriddhi Yojana account number and your DOP client ID.
- Then, you select the amount you wish to pay and the instalment length.
- Then, you will be notified by the IPPB that your payment procedure has been set up successfully.
- Every time this app makes a money transfer, you will receive an immediate notification.
Tax Benefits of Sukanya Samriddhi Scheme
There are tax benefits allotted for the sake of promoting investments under this Sukanya Samriddhi Scheme:
- Under this scheme, the investments made are entitled to deductions as per Section 80C with a cap of Rs. 1.5. Lakh to the maximum extent.
- Under Section 10 of the Income Tax Act, the accumulated interest against this account is compounded annually and, therefore, an exception from being subjected to tax.
- Under this scheme, the proceeds gained after withdrawal are exempted from income tax.
- With its remarkable tax benefits, this scheme is an excellent investment choice. This scheme guarantees that the scheme does not burden a family’s finances by ensuring tax benefits.
There are the below-mentioned tax benefits that are allowed to those who are enrolled under this scheme:
- This Sukanya Samriddhi Yojana, under Section80C of the Income Tax Act, permits up to 1.5. Lakh deductions, but these do not apply if you opt for the recent regime.
- The annual interest is accumulated upon the maturity of the deposit, and it remains tax-free.
- Under Sukanya Samriddhi scheme, the lock-in period is 21 years from the account’s opening date. After maturity, the deposited amount can be withdrawn free of tax.
- One can withdraw the tax-exempted principal and interest amount once it matures when a girl child has reached 18 years of age.
- This scheme is a widely known tax saving choice when it comes to the economic well–being of the girl child.
Sukanya Samriddhi Yojana- Interest Rates
There is a year-wise variation in the interest rates pertaining to Sukanya Samriddhi Yojana. The table given below showcases the interest rates offered by the Sukanya Samriddhi Scheme since its inception-
Year | Rate |
3 Dec 2014- 31 March 2015 | 9.1% p.a |
1 April 2015- 31 March 2016 | 9.2% p.a |
1 April 2016- 30 Sept 2016 | 8.6% p.a |
1 Oct 2016- 31 March 2017 | 8.5% p.a |
1 April 2017- 30 June 2017 | 8.4% p.a |
1 July 2017- 31 Dec 2017 | 8.3% p.a |
1 Jan 2018- 30 Sept 2018 | 8.1% p.a |
1 Oct 2018- 30 June 2019 | 8.5% p.a |
1 July 2019- 31 March 2020 | 8.4% p.a |
1 April 2020- 31 March 2023 | 7.6% p.a |
1 April 2023- 31 Dec 2023 | 8.0% p.a |
1 Jan 2024- 31 March 2024 | 8.2% p.a |
To Wrap Up
The Sukanya Samriddhi Yojana is a beacon of empowerment for the girl child, fostering financial security and independence. Its structured savings mechanism, attractive interest rates, and tax benefits make it a formidable tool for securing her future. By encouraging long-term savings and investment in the girl child’s education and marriage, the scheme ensures her financial well-being and contributes to her socio-economic empowerment.
As we continue to promote gender equality and inclusive development, schemes like Sukanya Samriddhi Yojana serve as invaluable instruments towards building a brighter and more equitable future for our daughters.
Frequently Asked Questions
Is the maturity amount withdrawn from the SSY account subject to taxation?
No, the maturity amount withdrawn from the Sukanya Samriddhi Yojana account is exempt from taxation.
What is the maximum deduction limit for SSY account deposits?
Deductions under Section 80C can be claimed for deposits made in the SSY account up to a maximum of Rs.1.5 lakh. There is no online application or option to open a Sukanya Samriddhi Yojana account.
How can one apply for Sukanya Samriddhi Yojana online?
No online application process is available for Sukanya Samriddhi Yojana.
How can one check the balance of Sukanya Samriddhi Yojana’s account?
To check the balance, one can visit the bank or post office where the account is held and obtain updated information from the passbook provided.
What is the duration of the Sukanya Samriddhi Yojana account?
The duration for Sukanya Samriddhi Yojana accounts spans 15 years for payments, with a minimum maturity period of 21 years.
How much should I invest in Sukanya Samriddhi Yojana?
You can invest between Rs. 250 and Rs.1.5 lakh per financial year in the SSY account.
How much amount will I get in Sukanya Samriddhi Yojana?
The maturity amount of an SSY account is determined by the annual contributions made. Additionally, upon the girl’s child reaches 18, you can withdraw 50% of the deposit amount prematurely for educational purposes or marriage expenses.