Introduction:

The ‘Sukanya Samriddhi Yojana (SSY)’ also known as ‘Bal Bal Samriddhi Yojana’ is perfectly in line with the campaign objectives of Prime Minister Narendra Modi as part of the Beti Bachao Beti Padhao campaign. The scheme was inaugurated on January 22, 2015 in Panipat, Haryana.

Among the national banking schemes offered by the Government of India, Sukanya Samriddhi Yojana (SSY) stands as a cornerstone. This low deposit policy was created with the specific objective of safeguarding the future of the girl child and is an important means of financial security.

Sukanya Samriddhi Yojana : 

The Post Office Sukanya Samriddhi Yojana (SSY) constitutes an integral aspect of the Beti Bachao, Beti Padhao scheme, aimed at instilling in parents the practice of annually saving for their daughters. With this scheme, available through post offices, you can establish an SSY account in your daughter’s name, offering attractive interest rates and tax advantages.

The objective is to empower parents to secure ample financial resources for their daughter’s education from the moment of her birth. Parents with daughters aged 10 or below have the option to open an SSY account in any private or public sector bank, allowing them to invest in it for a period of 21 years from the date of opening while accruing interest on their investments. The current interest rate for the SSY scheme is 8%, compounded annually. Additionally, investors can avail tax benefits up to Rs. 1.5 lakh on their SSY investments under Section 80C of the Income Tax Act.

Features of the Sukanya Samriddhi Yojana:

• Sukanya Samriddhi Yojana offers the following features:
• SSY accounts are eligible for girls aged 10 or below.
• Individuals are required to make annual deposits for 15 years from the date of account opening.
• Deposits can be made by online transfer, cheque, demand draft, or cash, allowing donors flexibility.
• A minimum investment commitment of 15 years is mandatory. Following this period, you have the option to cease further deposits, yet your SSY account will continue accruing interest until maturity.
• The minimum deposit requirement is Rs. 250, while the maximum limit stands at Rs. 1.5 lakh. Additional deposits can only be made in multiples of 50.
• The maturity period is 21 years from the date of opening of the account or till the girl gets married before the age of 18 years, whichever is earlier.
• Sukanya Samriddhi Yojana accounts can be transferred from post offices to banks and vice versa, provided that a change of residence proof is furnished.

Tax benefits of SSY:

• To encourage investment in SSY, the program offers certain tax benefits through SSA.
• Investment in SSY scheme is eligible for deduction under Section 80C, with a maximum limit of Rs 1.5 lakh.
• Maturity/withdrawal income is also tax-free.
• Interest accruing in this account, compounded annually, is also exempt from tax under Section 10 of the Income Tax Act.

Interest rate of SSY:

• Sukanya Samriddhi Yojana interest rate is fixed quarterly. Below is the historical trend of interest rates under Sukanya Samriddhi Yojana.
• The interest rate for the first quarter of FY2023-2024, April to June 2024 (Q1 FY2024-25), was 8.2%.
• The interest rate for the first quarter of FY 2023-2024, covering 1st April 2023 to 30th June 2023, has risen to 8%.
• For the second quarter of 2023-2024, July 1, 2023 to September 30, 2023, the interest rate is 8%.
• Interest rate for October to December 2023 (Q3 FY 2023-24) The interest rate for the third quarter of FY 2023-2024 is 8%.
• The interest rate for the fourth quarter of FY 2022-2023, covering 1st January 2023 to 31st March 2023, was 7.6%.

Benefits of SSY:

• The Post Office’s Sukanya Samridhi Scheme aims to empower girls across the country. It offers benefits to encourage its use:
• The Sukanya Samriddhi Yojana of the Post Office makes saving easier for the girl child, and easier as she grows older. The money can be used for her education or marriage expenses, with the aim of financially empowering the girls and their parents.
• It is a hassle free and easy process to open Post Office Sukanya Samriddhi Scheme account at Post Office. In addition, if there is a change in your residence, you have the option of sending it to a different postal branch. Moreover, submitting it to a bank branch is also an easy option.
• The interest rate paid on deposits in the SSY account is notably high, surpassing even the prevailing PPF rate. This heightened interest rate is particularly appealing to investors with a very low-risk appetite.
• Sukanya Samriddhi Yojana is a government-backed scheme, ensuring the safety and growth of your investment regardless of market performance. The Government of India guarantees a minimum interest rate on deposits, as well as the principal amount, eliminating the risk of losing money even if the interest rate declines to zero.

Eligibility of Sukanya Samriddhi Yojana:

• To open a Sukanya Samriddhi Yojana account, applicants must fulfill the following requirements.
• The account must be opened by the girl’s biological parents or legal guardians.
• The age of the beneficiary should be less than 10 years when the SSY account is opened in her name.
• The applicant should be a resident of India.
• Only one account is allowed per account holder.
• A family can open only two SSY accounts, one for each girl child.

How to Open a SSY Account:

You can initiate the opening of an SSY account at any bank or post office and subsequently set up the necessary standing instructions online. Below are the steps outlined for your convenience:

Online :

• You can follow these steps to download the form online:
• Download the SSY form from Reserve Bank of India online.
• Complete the form carefully, gather all necessary documents and arrange the deposit.
• Visit your nearest post office and submit the required amount, along with the form and all necessary documents, to open an SSY account.

Post Office:

• You can easily open an SSY account at a post office or bank by following the steps outlined below:
• Visit your nearest post office or bank and fill out an account opening form, called Form SSA-1. You can also download this form online for convenience.
• Provide personal information by including proof of identity and proof of address.
• Now proceed to deposit the sum, ensuring it falls within the minimum and maximum deposit limits.
• Once you submit the application form and make the deposit, the bank will conduct the necessary verifications.
• Once the transaction is complete, your SSY account will be ready for transaction and you will receive your passbook. Sukanya Samriddhi Yojana can also be applied online.
• The applicants are required to provide necessary details of the girl child in the Sukanya Samridhi Yojana application form. Moreover, the details of the depositor should also be included while applying for the opening of an SSY account. Here are some instructions on how to fill out the SSY application in various post offices:
• Go to your nearest post office to get an SSY application, and if applicable, provide your postal bank account number.
• Provide the post office details under the section labeled “To the Postmaster.”
• The applicant’s photograph should be submitted and the name should be provided, ticking the box ‘Sukanya Samriddhi Yojana’.
• Fill in all details under ‘Account Holder Type’ and ‘Account Type’. Provide information regarding Aadhaar, address, and PAN, then proceed to make the deposit.
• Now, sign on page 1. If you wish to provide instructions regarding the deposition amount, sign in Section (5) on page 2.

Documents Required:

• You will need the following documents to open an SSY account:
• The birth certificate of the girl child is required.
• Proof of identity and address for the guardian is required.
• Other KYC documents like Aadhaar card and voter ID may also be required.
• A medical certificate is required as evidence if there are girl children born in a specific order of birth.
• Any other documents that may be required by the post office or banks should also be prepared.
• Please note that you must provide a copy of all of these documents to the post office or bank branch where you submit your SSY application.

Sukanya Samriddhi Yojana payment:

• To make online payments to your SSY account, you need to download the IPPB app on your smartphone. Through this application, you can set status guidelines for specified amounts to be transferred online to your SSY account. Here is the  process:
• Transfer funds from your bank account to IPPB account.
• In the IPPB app, go to “DOP Products” and select Sukanya Samriddhi Yojana account.
• Enter your SSY account number along with the DOP customer ID.
• Select the desired payment amount and installment duration.
• IPPB will notify you when the payment process is successfully set up.
• You will receive a notification each time the app initiates a money transfer.

withdrawal rules:

• The child can make a premature withdrawal from the account in the following situations:
• If she is married or will be married after 18 years of age, she can withdraw her money by submitting a petition with proof of age at least one month before the marriage or up to three months
• If she completes his Class 10 exams before the age of 18, his parents can withdraw money from his SSY account for his higher education.
• If she has reached 18 years of age, completed class 10th, and intends to pursue higher education, she can make a premature withdrawal from the account by providing the necessary documents.
• Note that parents can withdraw funds from the account only if the child has completed 10 lessons before the age of 18 years.

Account closure rules:

• The SSY account matures upon the girl child reaching 21 years of age, and the balance, including interest, is disbursed to her upon submission of an application along with proof of identity, residence, and citizenship documents.
• Premature closure is permitted only under the following circumstances:
• In case of intended marriage after a girl child reaches 18 years of age, an application can be submitted between one month before the marriage and up to three months after the marriage, accompanied by age proof documents.
• If the girl dies, the balance in the SSY account will be distributed to the parent with interest accrued upon issuance of a death certificate.
• Deemed closure occurs if there’s a change in the status of the girl child, such as her becoming a non-resident or a non-citizen of India. This change in status should be communicated by the girl child or her guardian within one month of the status alteration.
• After completion of 5 years from the opening of an SSY, if the post office or bank determines that the operation or continuation of the SSY is causing undue hardship to the girl child (such as due to the death of the guardian or medical reasons affecting the girl child), the girl child or guardian may request premature closure.
• Medical treatment in the event of life-threatening diseases affecting the girl child or in case of the guardian’s death.

Final Words:

Sukanya Samriddhi Yojana is a special government sponsored scheme aimed at extending welfare benefits to the girl child to enable them to grow and prosper. Investing in this plan can help secure your daughter’s future. Designed to give India’s daughters financial independence, Sukanya Samriddhi Yojana offers several key benefits like higher interest rates, flexibility, lower deposit rates and assured returns. Opening an SSY account can pave the way for a brighter future for your daughter.