Sukanya Samriddhi Yojana (SSY) – An Overview

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What is Sukanya Samriddhi Yojana or SSY? What is the interest rate? How often does the interest rate change? What are the eligibility criteria? Let us get you all these answers.

Sukanya Samriddhi Yojana or SSY is a Small Savings Special Deposit Scheme for girl child. This scheme is especially designed for higher education or marriage needs of the girls. SSY was launched on December 02, 2014 as a part of Beti Bachao, Beti Padhao. The objective of the scheme is to promote the welfare of girl child.

Eligibility for SSA
The account can be opened by natural or legal guardian in the name of girl child from the birth of girl child till she attains the age of 10 years. The scheme is not available for girl child who has a status of non-resident Indian. In case the girl child acquires non-resident status after opening of SSA, her parents should inform the bank or post office within one month and then the account will be closed.
Maximum of one account can be opened per girl child. Also, one family can open maximum of two accounts for two girl children. The exception to the rule that this account can be opened for a maximum of two girl children is in case of twins or triplets.

Documents Required
  • SSY Account Opening Form
  • Birth certificate of girl child
  • Identify proof
  • Residence proof
  • KYC documents of guardian
Sukanya Samriddhi Yojana

Interest Rate
The interest rate of SSA account is 8.5% and the interest rate is regulated by Ministry of Finance from time to time. It offers higher rate of interest as compared to other small saving schemes.

Amount of Deposit
The minimum amount of deposit is Rs. 250 and you can deposit maximum amount of Rs. 150000 in a financial year. Earlier, the minimum amount was Rs. 1000 but has now been reduced to Rs. 250 only. You can choose to make one lumpsum deposit or in multiple installments as per your convenience. There’s no limit set for the number of deposits. In case, one does not deposit the minimum amount required, it attracts a penalty of Rs. 50.


Tax Benefits
The interest earned on deposits in SSA is tax free. Under Section 80C of Income Tax Act, one is eligible for deposits up to Rs. 150000 for deductions.

Tenure
The SSA can be kept working for a maximum period of 21 years from the date of account opening. The contributions by guardian need to be made for 14 years only. Thereafter, the account continues to earn interest until maturity even if no fresh deposits are made.

If you have still not opened SSA for your girl child, get it today. It will surely reap benefits in the long run. Have any questions? Feel free to ask us in the comments.

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