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All you need to know about Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana (SSY) is a small deposit scheme for the girl child launched as a part of the 'Beti Bachao Beti Padhao' campaign. It is currently (2016-17) fetching an interest rate of 9.1 per cent and provides income-tax rebate.
A Sukanya Samriddhi Account can be opened any time after the birth of a girl till she turns 10, with a minimum deposit of Rs 1,000. A maximum of Rs 1.5 lakh can be deposited during the ongoing financial year (FY16-17).

The account can be opened in any post office or authorised branches of commercial banks.

The account will remain operative for 21 years from the date of its opening or till the marriage of the girl after she turns 18.

To meet the requirement of her higher education expenses, partial withdrawal of 50 per cent of the balance is allowed after she turns 18.

What are the rules for opening Sukanya Samriddhi Account?The account can be opened by the natural or legal guardian in the name of the girl from her birth till she turns 10.

A depositor may open and operate only one account in the name of the girl child under these rules. One can't open two accounts for one girl.

The birth certificate of the girl in whose name the account is opened should be submitted by the guardian at the time of the opening of the account in the post office or bank, along with other documents relating to identity and residence proof of the depositor.

How much can be deposited in the account?The account can be opened with an initial deposit of Rs 1,000 and thereafter, any amount in multiple of Rs 100 can be deposited, subject to the condition that a minimum of Rs 1,000 will be deposited in a financial year, but the total money deposited in an account on a single occasion or on multiple occasions will not exceed Rs 1,50,000 in a financial year.

Deposits in the account can be made till the completion of 15 years, from the date of the opening of the account. For a 9-year-old, deposits have to continue till the child turns 24. Between ages 24 and 30 (when the account matures), the account keeps earning interest on the balance.

An irregular account where the minimum amount has not been deposited may be regularised on payment of a penalty of Rs 50 per year, along with the minimum specified subscription for the year (s) of default. If the penalty is not paid, the entire deposit, including those made before the date of default, will receive interest at post office savings bank account rate, which is currently 4%. If excess interest has been paid, it will be reversed. See Sukanya Samriddhi Scheme Calculator.

What is the mode of deposit?The deposit in the account can be made in cash or by cheque or demand draft and an endorsement on the back of such instrument has to be made and signed by the depositor, indicating the name of the account holder and the account number in which the deposit is to be credited.

How is the interest rate on deposits calculated?The government fixes interest rates on quarterly basis based on the G-sec yields. The interest rate spread that the SSY enjoys over the G-sec rate of comparable maturity is 75 basis points.

Interest at the rate, to be notified by the government, compounded yearly will be credited to the account till it completes 15 years.

In case the account holder opts for monthly interest, the same will be calculated on the balance in the account on completed thousands, in the balance which will be paid to the account holder and the remaining amount in fraction of thousand will continue to earn interest at the prevailing rate. For monthly interest, only the amount in thousands (rounded off) will be considered, the balance will continue earning interest at prevailing rate.

The interest will be calculated for the calendar month on the lowest balance in an account on the deposits made between the close of the 10th day and the end of the month.


When will the account mature?The account matures on the completion of 21 years from the date of opening or whenever the girl child gets married, whichever is earlier, subject to the following:

*It is also provided that where the marriage of the account holder takes place before the completion of such period of 21 years, the operation of the account will not be permitted beyond the date of her marriage.

*Provided further that where the account is closed before the completion of 21 years, the account holder will have to give an affidavit to the effect that she is not below 18 as on the date of closing of account. On maturity, the balance, including the interest outstanding in the account, will be payable to the account holder on the production of withdrawal slip along with the passbook

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