The Central Government of India launched SSY in 2015 under the Beti-Bachao-Beti-Padhao scheme. The SukanyaSamriddhiYojana is a small savings scheme for a girl-child. It offers a desirable interest rate and also helps you to save income tax under section 80C.
- The Central Government updated the Sukanya Account Scheme, 2019 under section 3A of the Government Savings Promotion Act, 1873 (5 of 1873)
- You can invest in the SukanyaYojana to save for higher education and the marriage of a daughter.
- One must open the account before the girl-child attains ten years of age.
- The natural or legal guardian of a girl child can open an SSY account.
- The girl child must be an Indian resident.
- The girl child has to be below the age of ten at the time of account opening.
- In this Scheme, the natural or legal guardian of a girl child can open only one account in the name of a girl child.
- Only two SukanyaSamriddhiYojana accounts are allowed for a family, i.e., one for each girl child.
- The SukanyaYojana Account can be opened for more than two girls in the family only where a girl child is born before the birth of a twin.
- Scheme launched by Central Government, so it provides safety and guaranteed return.
- The natural or legal guardian can be transferred the account to another bank or post office freely.
- A girl child’s natural or legal guardian will get a higher interest rate (currently 7.6% per year), just like the Public Provident Fund account.
- In this Scheme, interest will be calculated on a compound basis.
- This Scheme provides tax deductions benefit up to 1.5 lakh in a financial year under Section 80C.
- The interest income generated from investing in the SukanyaSamriddhiYojana Account is tax-exempt. So the maturity amount is tax-free.
Account Opening Process:
(1) The account can be opened in post office or branch of a commercial bank authorized by the Central Government to open an account under these rules by the natural or legal guardian in the name of a girl child, who has not attained the age of 10 years as on the date of opening of the account and If a girl child had attained the age of 10 years, one year prior to the application of these rules would also be eligible for opening of the account under these rules.
(2) Every account holder girl child should have a single account under the SukanyaSamriddhiYojana.
(3) The application in Form-1 for opening an account should be enclosed by the birth certificate of the girl child in whose name the account is to be opened, along with required documents of the natural or legal guardian.
(4) The natural or legal guardian should open an account under this Scheme for a maximum of two girl children in one family:
Provide that; the SukanyaYojana Account can be opened for more than two girls in the family only where a girl child is born before the birth of a twin.
Provide that further, the above provision will not apply to girl child of the second order of birth if the first order of birth in the family results in two or more surviving girl children.
(1) The natural or legal guardian can open the SukanyaSamriddhiYojana account by a minimum of two hundred fifty rupees and in multiples of fifty rupees.
(2) The total amount deposited in an account should not more than one lakh fifty thousand rupees in a financial year:
Provided that the excess deposit in the account (i.e., one lakh fifty thousand rupees) in the financial year will not be eligible for interest and returned immediately to the depositor as soon as possible.
(3) The natural or legal guardian will deposit in the SukanyaYojana account until the fifteenth year from the date of opening the account.
(4) The Scheme will be treated as under default if the minimum amount of two hundred and fifty rupees has not been deposited in the financial year.
It provided that the natural or legal guardian can regularize the under default account of the SukanyaSamriddhiYojana by paying fifty rupees as a penalty for each year of default until completion of fifteen years from the date of opening of an account with the minimum annual deposits.
(5) In case the under default account not regularized within the fifteen years from the date of opening of the SukanyaYojana account, then the whole deposit, including the deposits before becoming under default, will be eligible for interest at the rate applicable to the Scheme till the closure of the account.
Mode of Deposit
(1) The natural or legal guardian can deposit in the SukanyaSamriddhiYojana account in cash or by cheque or demand draft drawn in favor of the postmaster of the concerned post office or the manager of the Bank where the SukanyaYojana account opened. Details are made and signed by the depositor with the account holder’s name and account number in which the deposit is credited.
(2) If the deposit is made by cheque or demand draft, the encashment date will be the date of credit to the account.
Interest on deposit
(1) The deposit made in the account after 01st April 2020 and the balances at the credit of the account will earn interest at the rate of 7.6 per cent per annum.
(2) The interest will be calculated for the calendar month on the lowest balance in the account (between the close of the fifth day and the end of the month). The interest will be credited to the SSY account at the end of each financial year.
(3) Interest will be credited at the end of each financial year or until the account transfer during the financial year.
(4) The interest rates since the inception of the SukanyaSamriddhiYojana are under:-
|03.12.2014 TO 31.03.2015||9.1 %|
|01.04.2015 TO 31.03.2016||9.2 %|
|01.04.2016 TO 30.09.2016||8.6 %|
|01.10.2016 TO 31.03.2017||8.5 %|
|01.04.2017 TO 30.06.2017||8.4 %|
|01.07.2017 TO 31.12.2017||8.3 %|
|01.01.2018 TO 30.09.2018||8.1 %|
|01.10.2018 TO 30.06.2019||8.5 %|
|01.07.2019 TO 31.03.2020||8.4 %|
|01.04.2020 TO 30.06.2021||7.6 %|
Operation of account
The SukanyaSamriddhiYojana account will be operated by the natural or legal guardian of the girl’s child till she attains the age of eighteen years. The SSY account will be managed by the account holder herself after attaining the age of 18 years by submitting the date of birth and other necessary documents.
(1) The SSY account’s passbook having all the details like name and address of the account holder, account number, date of opening of the SSY account, date of birth of the girl child, and the amount deposited.
(2) The passbook will be presented by the natural or legal guardian to the post office or bank to update entries of depositing money and receive payment of interest.
(3) A duplicate passbook of SukanyaSamriddhiYojana account may be subsequently issued in the event of loss, mutilation, etc., of the original passbook, on the written request of the natural or legal guardian or the account holder, on payment of a fee of fifty rupees and such fees shall be creditable to the Government account.
(4) The natural or legal guardian or the account holder shall have the option to maintain the account records exclusively in electronic form, provided the post office or Bank concerned has access to the facility of the Core Banking Solution platform (CBS).
Transfer of Account
The SukanyaSamriddhiYojana account may be transferred anywhere in India if the girl child whose name the SSY account stands shifts to a place other than the city or locality where the SSY account stands.
The transfer process shall be electronic if the post office or the Bank concerned has to access the CBS facility.
Premature closure of the account
(1) The SukanyaSamriddhiYojana account will be closed immediately when the account holder died. The natural or legal guardian has to submit the application in Form-2 with the date of the death certificate.
The post office or bank will pay the account’s balance and interest up to the date of death of the SSY account holder to the natural or legal guardian.
(2) Interest for the period between the date of death and date of closure of the account will be paid at the rate applicable on Post Office Savings account for the balance held in the SSY account.
(3) Where the accounts office is satisfied that in case of extreme compassionate grounds like life-threatening diseases of the account holder or death of the natural or legal guardian and that the operation of the account is causing an extra burden on the account holder, it may, after complete documentation making the grounds for such closure, by order and for reasons to be kept in writing, allow the premature closure of the account. Outstanding balance in the SSY account with interest due as applicable to the Scheme will be paid to the account holder or natural or legal guardian, as the case may be:
Provided that no premature closure of an account under this subparagraph will be made before completing five years from the date of opening of the SSY account.
(4) If, after the opening of SukanyaSamriddhiYojana Account, the account holder becomes a non-citizen or non-resident of India, intimation to this effect shall be given by the natural or legal guardian or the account holder to the post office or the Bank concerned, as the case may be, within a period of one month from the date of such status of the account holder’s citizenship or resident status.
(5) In the event of a change of status of the account holder’s citizenship or residential status, no interest shall be deemed to accrue to the SukanyaSamriddhiYojana Account from the change of such status and the account shall be considered to be closed prematurely from that date.
(6) The balance at the credit of SukanyaYojana Account on the date of deemed closure under sub-rule (5) shall –
(a) Be returned, along with interest due, to the SukanyaSamriddhiYojana Account holder and if the account holder is not alive, then to the natural or legal guardian;
(b) In case any interest was credited to the SukanyaYojana Account after the change of resident status or citizenship of the SukanyaSamriddhiYojana Account holder, be reverted to the post office or the Bank concerned, immediately on being informed of such change in the status of the account holder.
For the education of the account holder, the natural or legal guardian can withdraw fifty per cent of the amount in the Account at the end of the financial year by producing an application in Form-3 with a related document like offer of admission, fee-slip from that institution indicating of financial requirement.
The withdrawal can be made in a lump sum or instalments, not exceeding one per year, for a maximum of five years.
Provided that such withdrawal will be allowed after the account holder attains 18 years or has passed 10th standard, whichever is earlier.
Closure on maturity
(1) The SukanyaSamriddhiYojana account will mature on completion of a period of 21 years from the date of its opening.
(2) The closure of the Account may also be permitted before the completion of 21 years if the account holder gives application requests of such closure for the reason of marriage. This declaration duly signed on non-judicial stamp paper which will be attested by the notary supported with proof of age confirming that the applicant will not be less than 18 years on the date of marriage:
Provided that no such closure will be allowed before one month from the date of the marriage of the account holder or after three months from the date of marriage of the account holder.
(3) On an application in Form-4 by the account holder, the balance outstanding along with interest as applicable will be payable to the account holder.
Power to relax
Suppose the Central Government is satisfied that the operation of any of the provisions of this Scheme causes extra burden to the account holder or natural or legal guardian. In that case, it may, by order and for reasons to be kept in writing, relax the requirement of that provision or provisions in respect of such account holder, in a manner not inconsistent with the provisions of the Act.
What is the SukanyaSamriddhiYojana?
The SukanyaSamriddhiYojana (SSY) is a scheme of the Central Government for Girl Childs, launched under the BetiBachao-BetiPadhao scheme. In the SukanyaSamriddhiYojana account, the natural or legal guardian of the girl child will earn the desirable interest rate on small savings, just like the provident fund account.
What are the Rules to open the SukanyaSamriddhiYojana Account?
The SukanyaSamriddhiYojana account can be opened by the natural or legal guardian of the child before the age of ten in the name of a girl child. According to this rule, the natural or legal guardian can open only one account for a girl child and deposit money.
How to open the SukanyaSamriddhiYojana account?
The natural or legal guardian of the girl child can be opened an account under the SukanyaSamriddhiYojana in the name of a girl maximum to two girl children, and after the birth of a girl child with a deposit of at least two hundred fifty rupees before the age of ten years. The natural or legal guardian can deposit a maximum of one lakh fifty thousand rupees under the SukanyaSamriddhiYojana account in the current financial year.
Where can the SukanyaSamriddhiYojana account be opened?
Under the SukanyaSamriddhiYojana, the natural or legal guardian of the girl child can open in an authorized branch of a post office or commercial bank branch.
What documents are required to open the SukanyaSamriddhiYojana Account?
When opening the SukanyaSamriddhiYojana account, it is necessary to give the girl’s birth certificate to the post office or Bank and prove the identity and address of the girl, and a natural or legal guardian must also be given.
How much amount is required to be deposited in the SukanyaSamriddhiYojana Account?
Two hundred fifty rupees are required to open the SukanyaSamriddhiYojana account, but later money can be deposited in multiples of fifty rupees. The natural or legal guardian must deposit at least two hundred fifty rupees in each financial year. A natural or legal guardian can deposit a maximum of one lakh fifty thousand rupees in the SukanyaSamriddhiYojana account in a single financial year.
How long can the money be deposited in the SukanyaSamriddhiYojana Account?
The amount can be deposited in the SukanyaSamriddhiYojana account for fifteen years from the day of opening the account. In the case of a nine-year-old girl, when she attains twenty-four, the amount can be deposited. By the time the child is twenty-four to thirty years old, when the SukanyaSamriddhiYojana account matures, interest will be paid on the amount deposited in it.
What happens if the minimum amount is not deposited in the SukanyaSamriddhiYojana Account?
If the minimum amount has not been deposited in a SukanyaSamriddhiYojana account, it becomes irregular. One can regularize the Account by paying a penalty of fifty rupees per annum. Along with this penalty, one needs to deposit the amount of contribution for every irregular year in the SukanyaSamriddhiYojana account.
If the penalty is not paid, then the amount deposited in the SukanyaSamriddhiYojana account will earn interest equal to the post office saving account. If the interest on the irregular SukanyaSamriddhiYojana account has been paid more than the saving account, it can also be reverted.
How will the funds be deposited in the SukanyaSamriddhiYojana Account?
Money can also be deposited in the SSY Account by cash, cheque, demand draft, or any such instrument which the bank accepts. For this, it is essential to write the name of the natural or legal guardian, Sukanya account number, and the account holder’s name.
In the SukanyaSamriddhiYojana account, the natural or legal guardian can deposit money through electronic transfer mode if the core banking system is present in that post office or Bank.
Suppose the amount in the Sukanyaaccount is paid by cheque or draft. Interest will be paid on it after the amount is cleared in the Account, whereas in the case of e-transfer, it will be calculated from the day of deposit.
What is the use of SukanyaSamriddhiYojana for higher education?
In the SukanyaSamriddhiYojana, the natural or legal guardian can withdraw up to fifty per cent of the amount for a child’s higher education after the age of eighteen. The natural or legal guardian can avail benefit under section 80C of income tax.
Under which circumstances the SukanyaSamriddhiYojana account can be closed before maturity?
If the SukanyaSamriddhiYojana account holder dies, the Account can be closed by showing the death certificate.
The post office or bank will give back the amount deposited in the SukanyaSamriddhiYojana account with interest to the child’s natural or legal guardian.
In other cases, the SukanyaSamriddhiYojana account can be closed after five years from opening in many circumstances, such as life-threatening diseases of the account holder or death of the natural or legal guardian.
Can the SukanyaSamriddhiYojana Account be transferred to a different location/branch?
Yes, the SukanyaSamriddhiYojana account can be transferred anywhere in the country if the account holder has shifted from the original place of opening the account to somewhere else. Account transfer is free of cost. However, proof of moving the account holder or natural or legal guardian will have to be shown.
If no such evidence is shown, then the post office or bank will have to pay Rs 100 for the account transfer where the account has been opened.
Is partial withdrawal allowed in the SukanyaSamriddhiYojana Account?
The natural or legal guardian can make a partial withdrawal from the SSY account to meet the financial needs of the account holder; these include higher education or marriage. In such a case, the natural or legal guardian can withdraw up to 50% of the amount deposited in the Scheme by the end of the last financial year. This withdrawal from the SukanyaSamriddhiYojana Account is possible only when the account holder crosses eighteen years.
A written application and admission offer or fee slip in any educational institution is required to withdraw money from the Account. In these cases, however, the amount withdrawn can be equal to the fee and other charges, not more than that.
When will the SukanyaSamriddhiYojana account mature?
The SukanyaSamriddhiYojana account will mature after the completion of twenty-one years from the day of the opening of this account or the marriage of the girl child.
If the account holder gets married before completing twenty-one years of opening the account, then the natural or legal guardian cannot deposit the money in the SSY account.