What is the Sukanya Samriddhi Yojana (SSY)?
On January 22, 2015, the Indian government launched a social initiative to address the issue of our country's declining child sex ratio. The Beti Bachao Beti Padhao (BBBP) movement advocates for saving and educating women. This federal initiative is jointly overseen by the Ministries of Women and Child Development, Health and Family Welfare, and Human Resource Development.
The BBBP aspires to the following goals:
to stop targeting minors for sex discrimination and gender prejudice.
to ensure the girls' safety and survival.
to ensure that more girls engage in activities and education.
SSY makes an effort to address marriage and education, two crucial problems impacting girl children. It strives to provide a bright future for girl children in India by helping parents start a fund for their child's good education and stress-free wedding expenses. SSY specially developed the Sukanya Samriddhi Account for this purpose.
Opening an SSY account Sukanya Samriddhi Yojana age limitations and maturity dates
There can only be one SSY account registered for a girl child. SSY accounts may be opened at any post office or authorised branch of a commercial bank. Between the time of a girl's birth through the age of ten, it can be unlocked at any time.
Any girl child residing in India is a beneficiary under the SSY from the time the account is formed until it matures or is closed.
obligations under the SSY
Until the girl child turns 18 years old, the guardian may deposit money and manage the account. The girl child will be required by law to manage the SSY account once she turns 18 years old. A SSY account requires a minimum deposit of 250 rupees (formerly 1,000 rupees), with successive deposits made in multiples of 50 rupees, and a maximum deposit of 1,50,000 rupees every fiscal year for a maximum of 15 years. Deposits can be made through cash, checks, demand draughts, and online transfers.
Interest on deposits is paid.
The interest rate is 7.6% per year for the fourth quarter of the fiscal year 2022-2023, which runs from 1 January to 31 March 2023. Interest will continue to accrue until the account's maturity date if the whole deposit in a "Account under Default" (where a minimum of Rs. 250 yearly has not been placed) is not regularised within the specified time frame. Within 15 years of the account's creation, a "Account in Default" may be regularised by paying a penalty of Rs. 50 per year of default.
No interest is owed after the SSY's term expires, which is 21 years from the account's opening. No interest is paid if the girl child departs India and stops being a resident or citizen of India. Any deposit made in excess of the Rs. 1,50,000 yearly cap will not earn interest and may be withdrawn by the depositor at any time.
Age of SSY Maturity
SSY's maturity period is either when she marries after turning 18 or 21 years after the account's creation. Only 15 years' worth of donations are necessary, though. After then, the SSY account will continue to earn interest until it matures even if no further contributions are made.
The benefits of Sukanya Samriddhi Yojana
Affordable Payments: Every fiscal year, a minimum deposit of Rs. 250 must be made to keep an SSY account active. Up to Rs. 1.5 lakh can be deposited at your convenience per fiscal year. It looks that everyone in the society can afford to make the payments. The account will be kept active even if you miss a full year's worth of payments, and a penalty of Rs. 50 will be charged to the missing Rs. 250 minimum payment.
Paid Educational Costs: To pay for your girl child's college expenses, you may take 50% of the account amount as of the end of the previous financial year. By presenting admissions paperwork, you can get this.
favourable interest rates Historically, SSY accounts have offered better interest rates than other government-sponsored initiatives. Currently, the rate is 7.6% each year.
Refunds Are Promised: Since SSY is a government-backed scheme, when it matures, returns are guaranteed.
Convenient Transfer: Moving the SSY account back and forth between any Indian bank and post office is simple.
Tax advantages of the Sukanya Samriddhi Yojana
A few tax benefits have also been granted to the SSA to encourage SSY investment:
Investments made in the SSY plan are eligible for deductions under Section 80C, up to a maximum of Rs 1.5 lakh.
According to Section 10 of the Income Tax Act, the interest that is accrued on this account and is compounded annually is also not subject to taxation.
The profits obtained upon maturity or withdrawal are not subject to taxation.
Interest rate for the Samriddhi Sukanya 2022 Yojana
The interest rate has stayed at 7.6% for the final three months of the fiscal year 2022-2023, or from January 1 to March 31, 2023.
The interest rate was 7.6% during the first quarter of FY 2022–2023, which ran from 1 April 2022 to 30 June 2022.
The complete deposit will earn interest on the post-savings bank account if a "Account under Default" (where a minimum deposit of Rs. 250 has not been made) is not regularised within the permitted time, unless the default is the consequence of the guardian who opened the Account passing away.
The Sukanya Samriddhi Yojana interest rates
The lowest balance for the calendar month, or from the fifth day of the month to its end, is used to calculate the interest on the SSY account. The interest will only be credited once, at the end of each fiscal year.
The formula below can be used to calculate the interest earned on an SSY account in general:
A is equal to P(1+r/n)nt.
First Down Payment = P
Rate of interest
N is the number of years that interest compounded.
T = The number of years.
the amount of maturity, A.
While the interest on an SSY account is compounded annually, calculating out the interest manually might not be easy. Instead, you can use our Sukanya Samriddhi Yojana Calculator to compute the maturity amount by entering the data, such as the expected annual investment amount, the girl child's age, and the account opening year.
Sukanya Samriddhi Yojana eligibility
Only the parents or legal guardians of a girl child may open an SSY account.
The girl kid must be under 10 years old, a resident of India, and a citizen of that country.
There can only be one account opened for a girl child.
A household may open a maximum of two SSY accounts, one for each girl child.
A Sukanya Samriddhi Account may be created for more than two girls under the following special conditions:
When a girl child is delivered before twin or triplet girls, or if triplets are the first to arrive, a third account may be created.
A third SSY account cannot be formed when a girl is born following twin or triplet females.
How can I open an account at the post office for the Sukanya Samriddhi Yojana?
A Sukanya Samriddhi Yojana (SSY) account can be opened at a Post Office branch or a bank that is a participant in the programme. To open the account, you must follow the steps below:
Visit the bank or post office location where the account will be opened.
Fill out the application form (Form-1) with the necessary information, and attach any supporting paperwork.
Make the initial deposit in cash, by check, or by demand draught. The sum may range from Rs. 250 to Rs. 1.5 lakh.
Your application and payment will be processed by the bank or post office.
Your SSY account will be opened following processing. With this account, a passbook will be produced to signify the start of the account.
How to Fill Sukanya Samridhi Yojna Application Form
1) Include the Post Office or bank branch information along with the "To The Postmaster/Manager" line.
2) Include a photo of the applicant (or candidates) to the right.
3) In the space below, put the applicant's name next to "I/We" and Sukanya Samriddhi Yojana.
4) Provide the deposit amount in words and figures, along with the proper payment method (cash, check, or DD). 5) Take note of any demand draughts or checks that have a number and a date listed on them.
6) Enter the girl child's name and birthdate as the depositor.
8) Enter the parent's PAN number after entering the guardian's name, birthdate, and Aadhaar number.
9) Enter the phone number and the address.
10) Be explicit about the account's kind and the depositor's birth certificate information.
11) Add the data for the associated KYC documents.
12) Don't forget to sign your name.
13) Provide the nomination details.
14) If the petitioner is illiterate, collect the signature of two witnesses.
15) Add the date, place, and signature to complete the nomination section.
For the Sukanya Samriddhi Yojana, how do I open a bank account?
You can open a Sukanya Samriddhi Yojana account at a post office location or a bank that participates in the scheme. It will be more convenient for you to open an SSY account there if your current bank is one of the participating banks. The websites of the respective institutions offer a download for the SSY Account Opening Application Form. You must complete the form and hand it in to the collaborating bank in order to start an SSY account. The participating banks are:
State Almighty Bank of India
Punjab and Sind Bank,
Bank of Andhra
Indian Bank Financial institution
Bank of Maharashtra
India Bank of Baroda
Overseas Indian Bank
Syndicate Bank of India,
Dena Bank UCO
United Punjab Countrywide Bank,
Bank of India
Union Bank of India
Axis Bank, and
ICICI Bank are all banks.
SUKANYA SAMRIDDHI YOJANA DOCUMENTS
You must physically visit the post office or bank where you submitted your SSY application in order to present the proof and documents in support of your application. The following papers must be presented in tangible form:
* Any other documents necessary by the post office or banks, such as voter identification cards, Aadhar cards, etc. Birth certificates for all girl children on one birth order; Identification and address proof for the guardian; Medical certificates for many girl children; Additional KYC documents, such as Aadhar cards and voter identification;
SUKANYA SAMRIDDHI YOJANA ONLINE PAYMENT
You must first download the IPPB app to your smartphone in order to make online payments to your SSY account. Via this software, you can programme automatic online deposits of a specified amount into your SSY account. Here is the full procedure:
As a first step, transfer funds from your bank account to the IPPB account.
Step 2: In the IPPB app, go to the DOP Products section and choose the Sukanya Samriddhi Yojana account.
Step 3: Type in the DOP customer ID and your SSY account number.
Step 4: Choose the total and duration of your instalment payments.
Step 5: IPPB will inform you once the payment process has been correctly set up.
Step 6: Every time the app delivers money, you'll get a notification.
SUKANYA YOJANA WITHDRAWAL RULES
You must send the passbook for your SSY account as well as the correctly filled-out withdrawal form to the bank or Post Office branch where the account is housed.
To make a claim or to withdraw early, you must fulfil specific conditions, such as paying for the girl's further education after she turns 18 years old.
If the girl is older than 18 or has completed the 10th standard, she may also withdraw up to 50% of the balance in the account to pay for educational costs, such as fees or other similar charges. Documentary proof, such as a fee receipt or an admissions offer that has been approved by a college or university, must be included with the withdrawal application.
Only one withdrawal may be made each year, either in full or over the course of five installments, subject to the established ceiling and the actual demand of fee/other expenses.
Regulations for Samriddhi Sukanya Yojana closure Maturity-based closure
The account matures when the girl reaches the age of 21, and the child is handed the remaining funds in the SSY, interest included, after filing an application and proof of identity, domicile, and citizenship.
Only the following situations allow for premature closure:
the reason for the planned marriage A girl child who has reached the age of 18 may file an application up to three months before or after being married, along with the requisite identification.
When the guardian receives the death certificate for a girl child, the remaining amount in the SSY will be paid to them together with interest.
medical care in the event that the girl child develops a life-threatening illness or the guardian passes away.
When a girl child's status changes, such as when she stops being an Indian resident or loses her citizenship, it is deemed closure. The girl kid or her legal guardian is required to notify everyone of the change in status within a month of it happening.
The female child or guardian may request an early closure of the SSY if the post office or bank judges, five years after the SSY's opening, that its operation or continuation is causing the girl child undue hardship (for example, because of the girl child's health or the guardian's passing).
After this account is opened, the SSY may be closed for any reason, but the full deposit will only earn interest at the post office savings bank rate.
What is the process for transferring money from my Sukanya Samriddhi account at the post office to my bank account?
To transfer the SSY account from a post office to a bank, follow these instructions:
* Visit the PO branch where it is kept to view the account. The girl youngster does not need to visit the PO branch because the guardian can finish the process.
* You must let the PO executive know that you intend to transfer the SSY account.
* Submit your passbook, the correctly completed account transfer form, and your KYC documentation. The executive will close the account at your request.
Now go to the bank where you intend to hold your SSY account.
When you ask to keep your account with them, be sure to include the self-attested KYC documents as well as any other paperwork the PO executive may have provided you.
The bank manager will handle your request and then provide you a new passbook.
Post offices, banks, transfers between post offices and banks, and transfers of the balance in the SSY are all free of charge across India.
This may be done if the guardian or the girl child has provided documentation of a change in residence. In all other circumstances, a fee of Rs 100 must be paid before the transfer may be completed.