Sukanya Samriddhi Yojana (SSY) Interest Rate 2024, Eligibility, Taxation

Sukanya Samriddhi Yojana ( सुकन्या समृद्धि योजना ) is a government-backed small savings scheme for the benefit of a girl child. It is a part of the Beti Bachao, Beti Padhao Yojana and can be opened by the parents of a girl child below the age of 10. SSY accounts can be opened at designated banks or post offices. The Sukanya Samriddhi Yojana Account has a tenure of 21 years or until the girl child marries after the age of 18. The SSY scheme comes with a higher interest rate along with several tax benefits. Read the complete article to know more about Sukanya Samriddhi Yojana details.

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Sukanya Samriddhi Yojana Interest Rate 2024

SSY Interest Rates are declared by the government quarterly. For Q3 (October-December) FY 2024-25,

Sukanya Samriddhi Yojana interest rate has been set at 8.2% p.a.

Click to check the historical Sukanya Samriddhi Yojana (SSY) interest rates.

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Benefits of Investing in Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana introduced as part of the Beti Bachao, Beti Padhao Yojana initiative, provides investors with a range of benefits. Some of the key Sukanya Samriddhi Yojana benefits are as follows:

High Interest Rate- SSY offers a higher fixed rate of return (currently 8.2% per annum for Q3 FY 2024-25) as compared to other government-backed tax saving schemes such as PPF.

Guaranteed Returns- Since SSY is a government-backed scheme, it provides guaranteed returns.

Tax Benefit- SSY provides tax deduction benefits under Section 80C up to Rs. 1.5 Lakh annually.

Flexible Investment- One can make a minimum deposit of Rs. 250 in a year and a maximum deposit of Rs. 1.5 Lakh in a year. This ensures people with different financial standing can invest in the SSY scheme.

Benefit of Compounding- Sukanya Samriddhi Yojana (SSY) is a great long-term investment scheme as it provides the benefit of annual compounding. So, even small investments will give higher returns over the long term.

Convenient Transfer- SSY account can be freely transferred from one part of the country to another (bank/post office) in case of transfer of parent/guardian operating the Sukanya Samriddhi Account.

Sukanya Samriddhi Yojana Deposit Limits

• The minimum annual contribution to the Sukanya Samriddhi Account is Rs. 250 and the maximum contribution is Rs. 1.5 Lakh in a financial year.
• You have to invest at least the minimum amount every year for up to 15 years from the date of account opening. Thereafter the account will continue to earn interest till maturity.
• Subsequent deposits can be made in multiple of Rs. 50 in lump-sum or installments and there is no limit on the number of deposits that can be made either in a month or financial year.

Age Limit & Maturity Period of Sukanya Samriddhi Yojana

Post Office Sukanya Samriddhi Yojana has a tenure of 21 years or may be withdrawn at the time of the girl’s marriage after attaining the age of 18 years.

However, contributions only need to be made for 15 years. Thereafter, the SSY account continues to earn interest until maturity even if no deposits are made into it.

Other Key Features of Sukanya Samriddhi Yojana 

• If an SSY account holder is unable to make even the minimum deposit of Rs. 250 in a financial year, his/her account will be termed as a ‘Default Account’. Till the maturity date, this default account will earn the interest rate as applicable in the scheme. The defaulted account can, however, also be revived prior to the completion of 15 years of account opening by paying at least Rs. 250 + Rs. 50 for each defaulted year.
• A girl child can operate her own account after the age of 18 years. Once she is 18 years old, she is eligible for operating the SSY after submitting all the necessary documents to the post office/bank where the account is being held.
• Withdrawal can also be made from the account up to 50% of the balance available at the end of the previous F.Y. once the girl is above 18 years of age or has passed 10th standard to meet expenses relating to higher education such as fees or other such charges. Maximum one withdrawal can be made in a year, in lump sum or in instalments, for a maximum of 5 years, subject to the ceiling specified and to the actual requirement of fee/other charges.

Also Read: Sukanya Samriddhi Yojana V/S Public Provident Fund

Tax Implication of Sukanya Samriddhi Yojana (SSY)

From a taxation perspective, SSY investments are designated as EEE (Exempt, Exempt, Exempt) investments. This means that the principal invested, the interest earned as well as the maturity amount are tax-free.

Under existing taxation rules of Sukanya Samriddhi Yojana, the tax deduction benefit on the principal amount invested is up to Rs 1.5 Lakh per annum under Section 80C of the Income Tax Act, 1961.

Sukanya Samriddhi Yojana Eligibility

• Only parents or legal guardians of a girl child can open an SSY account
• The girl child has to be below the age of 10 at the time of account opening
• Only one account can be opened in the name of a girl child
• Only two SSY accounts are allowed for a family i.e. one for each girl child

Note: Sukanya Samriddhi Account can be opened for more than two girls in some special cases which are-

• If a girl child is born before the birth of twin or triplet girls or if triplets are born at first, then a third account can be opened
• If a girl child is born after the birth of twin or triplet girls, a third SSY account cannot be opened

Note: The information was first published in The Gazette of India. To know more, visit https://egazette.nic.in/WriteReadData/2023/244822.pdf

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How to Open Sukanya Samriddhi Yojana Account

You can invest in the Sukanya Samriddhi Yojana scheme through your nearby post office or designated branches of participating public and private banks. You will need to submit KYC documents like Passport, Aadhaar Card, etc. along with the required form and initial deposit by cheque/draft.

Depositors will have to fill out the Sukanya Samriddhi Yojana (SSY) Application Form, which can be obtained by visiting a nearby post office or participating public/private sector bank. Alternatively, you can also download the SSY New Account Application Form from the following sources:

• The Reserve Bank of India Website
• The India Post Website
• Individual websites of public sector banks (SBI, PNB, BoB, etc.)
• The websites of participating private sector banks (e.g. ICICI Bank, Axis Bank and HDFC Bank)

While there are multiple sources for downloading the SSY application form, the fields in the form will be the same regardless of the source.

Click to find the complete list of banks offering Sukanya Samriddhi Yojana

How to Fill Sukanya Samriddhi Yojana Application Form

The SSY Application Form requires applicants to provide some key data regarding the girl child in whose name the investment will be made under the Beti Bachao, Beti Padhao Yojana. Details of the parent/guardian who will be opening the account/making deposits on her behalf are also required. The following are the key fields that are featured in the SSY Application Form:

• Name of the Girl Child (Primary Account Holder)
• Name of Parent/Guardian opening the account (Joint Holder)
• Initial deposit amount
• Cheque/DD Number and Date (used for an initial deposit)
• Date of Birth of the girl child
• Birth Certificate details of primary account holder (Certificate number, date of issue, etc.)
• ID Details of Parent/Guardian (Driving License, Aadhaar, etc.)
• Present and Permanent Address (as per ID document of parent/guardian)
• Details of any other KYC Documents (PAN, Voter ID card, etc.)

Once the above details have been filled out, the Sukanya Samriddhi Yojana form needs to be signed and submitted to the account opening authority (Post office/Bank Branch) along with copies of all applicable documents.

Transfer of Sukanya Samriddhi Yojana Account

One of the key benefits of the SSY Account is the fact that it is easily transferable from one part of India to another. Under existing rules, you can transfer this tax-saving deposit account for the benefit of a girl child from one India Post Office to another or from one designated bank branch to another with ease.

To initiate the transfer of your SSY account from a post office, you will have to fill out and submit the transfer request form to the Post Master of the India Post Office where your account is currently located.

Similar transfer forms are available online as well as offline in case you want to transfer the deposit from one designated bank branch to another.

Sukanya Samriddhi Yojana Closure Rules

Closure on Maturity

The SSY Account matures after 21 years of account opening.

The total balance in the SSY account, including interest, is paid to the girl child on submitting an application along proof of identity, address and citizenship documents.

Premature Closure of Sukanya Samriddhi Yojana Account

Premature closure can only be done by a girl child on attaining the age of 18 years for the purpose of marriage expenses. However, no closure is permitted before 1 month or after 3 months from the date of marriage.

However, there are some special cases under which the account can be closed and the respective amount can be withdrawn:

It is to be noted that the closing of the account under Sukanya Samriddhi Yojana will only be catered to under extreme cases such as life-threatening diseases or medical emergencies.