Post Office Sukanya Samriddhi Yojana
Post Office Sukanya Samriddhi Yojana is a Government of India backed savings scheme designed for the girl child in the family. It is a part of “Beti Bachao – Beti Padhao Yojana” and to inculcate savings habit in the girl child’s parents/guardians to build a corpus for her future education and marriage expenses. It can be opened by the girl’s parents or legal guardian till she reaches the age of ten years.
The government’s effort to encourage girl child education and saving for them through Sukanya Samriddhi has received a very positive response and is highly appreciated.
Key Features of Post Office Sukanya Samriddhi Account
- A maximum of two Post Office Sukanya Yojana accounts are allowed per family. Three accounts may be allowed to be opened in case of birth of twins/triplets. An account can be opened by a child’s parent or legal guardian till the age of 10 years.
- Post Office Sukanya Samriddhi Yojana can be opened at Post Office with a minimum deposit of Rs. 250 per annum and the maximum deposit can go up to Rs.1.5 lakh in a year. Deposits can be made by cash and/or check.
- The tenure of SSY account is 21 years or till the girl gets married after 18 years of age. Account can be kept active for 21 years from the date of account opening. Once this period is over, Post Office Sukanya Samriddhi Account does not earn any interest on it.
- This scheme is valid for Indian resident girl only. A girl child with non-resident Indian status is not allowed to have an SSY account under her name.
- Sukanya Samriddhi Yojana in post office allows partial withdrawal facility once girl attains 18 years of age. After that, 50% funds can be withdrawn from Post Office Sukanya Samriddhi account for higher education/marriage purpose.
- As mentioned earlier, the minimum deposit is Rs. 250 per year for at least 14 years is required to keep the account in active status. If this requirement is not met within one year, the account will be deactivated and the minimum deposit amount will be Rs. 50 can be reactivated by paying a fee.
Opening of Sukanya Samriddhi Account in Post Office
Opening a Post Office Sukanya Samriddhi Yojana account in India is extremely easy and hassle-free. You just need to present mandatory documents, submit proofs and your account will be opened by the authorities soon!
As of October 2015, the current Prime Minister of India, Narendra Modi, had launched a small deposit scheme for saving for the girl child, as part of the ‘Beti Bachao Beti Padhao’ campaign earlier in the year. . This scheme is especially for higher education or marriage needs of girls. While the marriage needs of a girl are often debated in India, the education needs for a woman are increasing every year.
Application for this scheme can be submitted for girls up to the age of 10 years with a grace period of one year. Besides, opening an account for him is also a hassle-free affair.
You can open an account by registering yourself as a guardian in the name of the girl till she turns ten. Only one account can be opened per child. Parents are allowed to open this account for a maximum of two children, but it is quite suitable for the child.
However, in case of twins or triplets, depending on the situation, the facility can be extended to the third child. Accounts can be opened at post offices as well as authorized bank branches.
How to open Sukanya Samriddhi Yojana account in post office?
The post office provides an easy and hassle free way to open an SSY account. Individuals who do not have an account with a post office can open an SSY account by submitting the following documents:
How to fill Post Office Sukanya Samriddhi Yojana Application Form?
Applicants need to provide some key details related to the girl. The details of the parent/guardian opening/depositing the account on his/her behalf are also required. Following are the main details that are present in the SSY application form:
- Name of Girl Child (Primary Account Holder)
- Name of biological parent/guardian opening the account (Joint Holder)
- Initial Deposit Amount
- Check/Demand Draft Number and Date (used for initial deposit)
- Date of birth of baby girl
- Primary account holder birth certificate details (certificate number, date of issue, etc.)
- Photo and address proof details of parents/guardians (driving license, Aadhaar, etc.)
- Current and permanent address (as per parent/guardian ID document)
- Details of any other KYC documents (like PAN, Voter ID Card etc.)
Stepwise Procedure for Opening Post Office Sukanya Samriddhi Yojana Account
- Get the account opening form from the post office or you can download it online from the Indian post office portal. You can also check some other details of Post Office Sukanya Yojana.
- Fill required details and submit documents with photos
- Deposit minimum amount
- After opening an account, one can make deposits through cash, check or demand draft.
Benefits of Sukanya Samriddhi Account with Post Office
- The Post Office Sukanya Samriddhi Yojana account offers numerous benefits that have made it one of the most popular savings schemes.
- Interest rate of 7.6% per annum is compounded as per 2022-2023 and credited to the account every year.
- Even if the amount is not withdrawn after the maturity of 21 years, it will continue to accrue interest as per the rates.
- Post office SSY account is transferable in case the depositor decides to relocate. The account can be transferred to any other authorized post office at the new location and further action can be taken
- Funds deposited in this account are eligible for tax deduction as per Section 80C of the Income Tax Act.
Read this also : सुकन्या समृद्धि योजना
Status of Sukanya Samriddhi Accounts for NRIs
Launched by Prime Minister Narendra Modi, the Sukanya Samriddhi Yojana aims to uplift the status of girls in the country, with a vision to bring them at par with global standards.
The scheme has received a lot of response from the NRI community abroad but as per the current provisions of the scheme NRIs are not eligible to open a Sukanya Samriddhi account for their daughters.
With the increasing participation of the NRI community in Indian life and politics, the scheme is likely to be extended to cover NRIs in the future. This will depend on the government in power at the time and is currently nothing more than speculation. Current status does not allow NRIs to open Sukanya Samriddhi Account.
Tax benefits under Sukanya Samriddhi Account
Sukanya Samriddhi Yojana offers the following tax benefits to those enrolled in the scheme.
- Investments made in this scheme are eligible for tax deduction under Section 80C of the Income Tax Act. The deduction for this scheme is a maximum of Rs. 1.5 lakh is subject to
- The scheme earns interest which is compounded and credited to the account annually. This accumulated interest is exempt from tax, ensuring that the funds grow to their maximum potential.
- The invested amount can be withdrawn on maturity or on account closure. This amount is exempt from tax, ensuring that the child can use the amount in full without paying tax on it.
These tax provisions ensure that both the depositor and the beneficiary enjoy tax exemption, ensuring that they can get on with their lives without worrying about taxes.
Tax Deduction Eligibility Criteria
The Sukanya Samriddhi Yojana allows provisions for a depositor to deposit money on behalf of the girl child. This depositor can be either a parent or a legal guardian.
While the contribution to the scheme is eligible for tax deduction, only one depositor can claim tax exemption under Section 80C of the Income Tax Act. This means that a parent or legal guardian can claim an exemption from either, but not both.
Post Office Sukanya Samriddhi Yojana is a win-win for both the child girl and her parents/legal guardian, offering tax incentives to both, paving the way for a bright future for the child.
List of Banks Offering Sukanya Samriddhi Savings Account
Several banks located in India have been authorized by the Government of India to open Sukanya Samriddhi Bachat Accounts (SSA). Some of these are State Bank of India (SBI), Syndicate Bank, UCO Bank, Indian Bank, IDBI Bank, Canara Bank etc.
(On 23 July 2018, the minimum annual deposit criteria for Sukanya Samriddhi Yojana account was revised to Rs.250 from the earlier amount of Rs.1,000. The interest rate of Sukanya Samriddhi Yojana scheme was reduced from 8.4% to 7.6% p.a. and it compounded annually.)
The Reserve Bank of India has authorized the following banks to open Sukanya Samriddhi Savings accounts (SSA).
- Axis Bank Sukanya Samriddhi Yojana
- Andhra Bank Sukanya Samriddhi Yojana
- Allahabad Bank Sukanya Samriddhi Yojana
- State Bank of India Sukanya Samriddhi Yojana
- Bank of Maharashtra Sukanya Samriddhi Yojana
- Bank of India Sukanya Samriddhi Yojana
- Bank of Baroda Sukanya Samriddhi Yojana
- Vijaya Bank Sukanya Samriddhi Yojana
- Indian Overseas Bank Sukanya Samriddhi Yojana
- Indian Bank Sukanya Samriddhi Yojana
- IDBI Bank Sukanya Samriddhi Yojana
- United Bank of India Sukanya Samriddhi Yojana
- Union Bank of India Sukanya Samriddhi Yojana
- UCO Bank Sukanya Samriddhi Yojana
- Punjab National Bank Sukanya Samriddhi Yojana
- Syndicate Bank Sukanya Samriddhi Yojana
- Punjab & Sind Bank Sukanya Samriddhi Yojana
- Oriental Bank of Commerce Sukanya Samriddhi Yojana
- Dena Bank Sukanya Samriddhi Yojana
- Corporation Bank Sukanya Samriddhi Yojana
- Canara Bank Sukanya Samriddhi Yojana
- Central Bank of India Sukanya Samriddhi Yojana
- State Bank of Bikaner & Jaipur Sukanya Samriddhi Yojana
- State Bank of Travancore Sukanya Samriddhi Yojana
- State Bank of Hyderabad Sukanya Samriddhi Yojana
- State Bank of Patiala Sukanya Samriddhi Yojana
- State Bank of Mysore Sukanya Samriddhi Yojana
The account can also be opened at post offices. You will need to make an initial deposit of Rs.250 and submit your documents in order to open the account.
Withdrawal of Sukanya Samriddhi Yojana
This account allows people to partially withdraw their money when they need it. However, the girl child must be 18 years of age before her guardian or parent can withdraw money from the account.
Does Sukanya Samriddhi Account allow partial withdrawal?
The account allows partial withdrawals. A Sukanya Samriddhi account holder can withdraw up to 50% of the total savings to fulfill the purpose of his/her daughter’s marriage or higher education.
Sukanya Samriddhi Account allows partial withdrawal only after the girl turns 18. Because it is only after the age of 18 that a girl becomes eligible for legal marriage or for pursuing higher education.
The tenure of Post Office Sukanya Samriddhi Yojana Account is 21 years. Account matures after completing 21 years. Thereafter, if the account is not closed, the account holder will get interest on his savings/balance as specified in the scheme.
Can I close my Sukanya Samriddhi account prematurely?
Yes, Sukanya Samriddhi account can be closed prematurely. This can happen only when your daughter completes the age of 18 and gets married.
The minimum lock-in period of the scheme is 8 years, apart from the maximum permissible age which is 10 years, in which you cannot withdraw any amount from the account.
The account requires a minimum deposit of Rs. 250 per year, in case of failure the account will be closed.
How to Transfer Sukanya Samriddhi Account
A person can transfer the Sukanya Samriddhi Yojana account to any other place in the country as per his wish. If you have already opened an account in any post office, you can transfer it to any other branch of your choice.
Sukanya Samriddhi Account Transfer Process
Parents can open a Sukanya Samriddhi Yojana (SSY) account on behalf of their child. The account can be opened before the girl reaches 10 years of age and matures when the girl reaches 21 years of age. SSY account can be transferred from bank to post office and vice versa.
The procedure for SSY account transfer is given below:
- Initially, you have to fill a form requesting transfer of account. You can contact the bank branch or post office where the account is opened for the transfer request form. The name and address of the bank or post office to which the account will be transferred must be mentioned in the application form.
- The next step is to visit the bank branch or post office where the Sukanya Samriddhi account is maintained and submit the transfer request form and account passbook.
- To initiate the Sukanya Samriddhi account transfer process, submission of original passbook and transfer request form is mandatory.
- The bank or post office where the account is currently held will verify the submitted documents and process the transfer request by closing the existing Sukanya Samriddhi Yojana account. All documents related to the account will be provided to the customer. Documents must be submitted to the new bank or post office.
- The next step would be to visit the new post office or bank and submit the documents. Account opening form is required to be filled and customer must submit KYC documents, photograph and specimen signature for account transfer.
As long as the girl child does not operate the account, she does not need to visit the bank or post office to transfer the SSY account.
Loan against Sukanya Samriddhi Yojana
Currently, no loan can be taken against this policy as per existing rules and regulations. Any investment made in the account cannot be held as security for loan purposes. This provision currently does not exist for Sukanya Samriddhi Yojana.
We are not new to the concept of getting loans against deposits. Many deposit schemes allow the investor to pledge their deposit and take a loan against it.
As per terms and conditions of Sukanya Samriddhi Yojana, no loan can be taken against the investment made in the account. Although this facility is likely to be added to the policy later, there is currently no such provision attached to the Sukanya Samriddhi Account.
But the investor always has the option of partial withdrawal when the girl reaches the maturity age of the account which is 18 years.
Partial withdrawals can be made up to 50 percent of the accumulated amount. The partially withdrawn money can in turn be used for the girl’s higher education or other purposes. This is one of the many attractive features why people invest in accounts.
Sukanya Samriddhi Account is a perfect plan for those who want to financially secure their baby girl’s future. Another beneficial feature of the Sukanya Samriddhi account is that there is no limit on the number of investments that can be made during a given financial year.
Currently there are only two institutions in the country where an account can be opened. Post Office already facilitates Sukanya Samriddhi account. Then there are 28 banks which are authorized by this scheme.
Calculation of Sukanya Samriddhi account Interest Rate
To illustrate how the SSY interest rate calculation works, here is an example. Mrs. Malvika, parents of a 3-year-old girl, started investing in SSY from FY 2015-16.
The interest rate for this SSY calculation is current. Let us assume that the deposit amount and deposit date remain the same for 21 years. She contributes Rs.10,000 on April 1 of every financial year. The maturity amount that his daughter can get at the end of 21 years is as follows.
| Year | Financial Year | Rate of Interest (%) | Deposit made during the year (Rs.) | Interest generated during the year (Rs.) | Balance at the end of the year (Rs.) |
| 1 | 2022-2023 | 7.60 | 1,00,000 | 7,600 | 1,07,600 |
| 2 | 2023-2024 | 7.60 | 1,00,000 | 15,777.60 | 2,23,378 |
| 3 | 2024-2025 | 7.60 | 1,00,000 | 24,576.72 | 3,47,955 |
| 4 | 2025-2026 | 7.60 | 1,00,000 | 34,044.60 | 4,82,000 |
| 5 | 2026-2027 | 7.60 | 1,00,000 | 44,232.00 | 6,26,232 |
| 6 | 2027-2028 | 7.60 | 1,00,000 | 55,193.64 | 7,81,426 |
| 7 | 2028-2029 | 7.60 | 1,00,000 | 66,988.32 | 9,48,414 |
| 8 | 2029-2030 | 7.60 | 1,00,000 | 79,679.52 | 11,28,094 |
| 9 | 2030-2031 | 7.60 | 1,00,000 | 93,335.16 | 13,21,429 |
| 10 | 2031-2032 | 7.60 | 1,00,000 | 1,08,028.56 | 15,29,458 |
| 11 | 2032-2033 | 7.60 | 1,00,000 | 1,23,838.80 | 17,53,297 |
| 12 | 2033-2034 | 7.60 | 1,00,000 | 1,40,850.60 | 19,94,148 |
| 13 | 2034-2035 | 7.60 | 1,00,000 | 1,59,155.28 | 22,53,303 |
| 14 | 2035-2036 | 7.60 | 1,00,000 | 1,78,851.00 | 25,32,154 |
| 15 | 2036-2037 | 7.60 | 1,00,000 | 2,00,043.72 | 28,32,198 |
| 16 | 2037-2038 | 7.60 | 0 | 2,15,247.00 | 30,47,445 |
| 17 | 2038-2039 | 7.60 | 0 | 2,31,605.88 | 32,79,051 |
| 18 | 2039-2040 | 7.60 | 0 | 2,49,207.84 | 35,28,259 |
| 19 | 2040-2041 | 7.60 | 0 | 2,68,147.68 | 37,96,407 |
| 20 | 2041-2042 | 7.60 | 0 | 2,88,526.92 | 40,84,934 |
| 21 | 2042-2043 | 7.60 | 0 | 3,10,455.00 | 43,95,389 |
Sukanya Samriddhi Yojana Interest Rate
Sukanya Samriddhi Yojana is a government scheme which was launched by Prime Minister Narendra Modi in the year 2014.
The interest rate of Sukanya Samriddhi Yojana is revised quarterly. SSY aims to provide financial security to the girl child till marriage. Sukanya Samriddhi Yojana account can be opened for children below 10 years of age. The account matures in 21 years from the date of opening.
Based on the Government Security (G-sec) yield, the Government of India sets the interest rate for the Sukanya Samriddhi Yojana on a quarterly basis.
The interest rate is compounded annually and credited to the account. Subscribers can also opt for monthly interest. For a month, the interest rate is calculated on the minimum balance present in the account between the 10th and the last day of the month. For FY2021-2022, the interest rate is 7.6%.
| Year | Interest Rate (%) |
| 1 July 2021 to 31 March 2022 | 7.60% |
| 1 April 2020 to 30 June 2021 | 7.6 |
| 1 January 2020 – 31 March 2020 | 8.4 |
| 1 April 2019 – 30 June 2019 | 8.50 |
| 1 January 2019 – 31 March 2019 | 8.50 |
| 1 October 2018 – 31 December 2018 | 8.50 |
| 1 July 2018 – 30 September 2018 | 8.10 |
| 1 April 2018 – 30 June 2018 | 8.10 |
| 1 January 2018 – 31 March 2018 | 8.10 |
| 1 October 2017 – 31 December 2017 | 8.30 |
| 1 July 2017 – 31 September 2017 | 8.30 |
| 1 April 2017 – 30 June 2017 | 8.40 |
| 1 January 2017 – 31 March 2017 | 8.50 |
| 1 October 2016 – 31 December 2016 | 8.50 |
| 1 July 2016 – 30 September 2016 | 8.60 |
| 1 April 2016 – 30 June 2016 | 8.60 |
| From 1 April 2015 | 9.20 |
| From 1 April 2014 | 9.10 |
The government has ensured that the interest rate of Sukanya Samriddhi Yojana is profitable enough to encourage parents to invest more for the future security of the girl child. Currently, the interest rate is 7.60% p.a. And it is compounded annually. This is also the best interest rate in other savings schemes including PPF.
Effectively, parents get a competitive interest rate on the Sukanya Samriddhi Yojana account in addition to tax exemption under Section 80C of the Income Tax Act, 1961. There is no other deposit scheme in the country that offers such high interest rates, tax exemption and protection for the girl child.
The interest rate comparison of Sukanya Samriddhi Yojana with other popular savings instruments like PPF, RD and FD is shown below:
| Scheme | Sukanya Samriddhi Yojana | Public Provident Fund (PPF) | Fixed Deposit | Recurring Deposit |
| Interest rate (FY 2022-23) | 7.60% p.a. | 7.10% p.a. | 3.50% to 8.00% p.a. | 5.75% – 8.05% p.a. |
Frequently Asked Questions on Interest Rates of Sukanya Samriddhi Yojana
Is it possible to close SSY account before maturity?
No, it is not possible to close SSY account before maturity.
Can a loan be availed on SSY account?
No, loan facility is not available on SSY account.
Can a girl open more than one SSY account?
No, only SSY account can be under girl’s name.
Is transfer of SSY account from one bank to another bank possible?
Transfer of SSY from bank to post office is possible and vice versa.
Is there any penalty if customer fails to deposit money in SSY account?
A penalty of Rs.50 is levied if the subscriber fails to deposit the minimum amount in a financial year.
How long does SSY account take to mature?
An SSY account matures after 21 years from the date the account is opened.
Is SSY scheme available across India?
Yes, SSY account can be opened anywhere in India.
Should I invest in SIP or Sukanya Samriddhi Account?
Since the investment period for Systematic Investment Plan (SIP) and Sukanya Samriddhi Account is long term, there has been a lot of debate on what is the best investment channel to get maximum benefits in the future.
Should I invest in SIP or Sukanya Samriddhi Account?
SIP is a method of investing in the stock market through mutual funds on a regular basis, whereas, investment in SSA is 100% debt based. When you invest in the stock market for a long time, ie more than 14 years, the historical data reflects that the returns are huge. These returns not only combat inflation, but also help your money grow.
However, these investments are subject to market risks. In the case of a debt investment tool like SSA, the interest rate is flexible; Therefore, in the long run, returns may not be able to meet inflation and taxes. However, the element of risk in debt based investments is very low.
Therefore, this channel of investment is ideal for individuals who are not willing to bear the risks of the stock market.
