Sukanya Samriddhi Yojana – SSY Scheme Details, Features, Interest Rate, Taxation

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  • Post last modified:December 6, 2022

What Is Sukanya Samriddhi Yojana?

As the name suggest Sukanya Samriddhi , this scheme is mainly launched by the Government of India in 2015 under the ‘Beti Bachao Beti Padhao Campaign’ for the welfare for girls in India. Sukanya Samriddhi is a small saving scheme which also qualifies for tax deduction under EEE (Exempt Exempt Exempt) category.

This means that the investment amount, the interest earned, and the maturity amount all are eligible for tax exemption.

Moreover, the investor has to invest in the scheme for only 15 years, From the 15th year, the investor can choose not to make any contributions to the account until the 21st year but the SSY account will continue to earn returns at the prevailing interest rate on the previous investments made.

Hence, the final maturity amount is the sum total of the net investments and interest earned.

Apart from above benefit under the Sukanya yojana the investor can choose to withdraw the money up to 50% for the higher education of the girl child  or in case of marriage once she complete 18 years of age.

The interest will be paid on the balance amount for the next three years.

Having said that, if the amount isn’t withdrawn after 21 years, the maturity amount will no longer generate interest.

As the scheme is backed by the central government the returns on the SSY scheme is guaranteed, however the interest rates which currently is at 7.6% compounded annually gets decided by the Ministry of Finance on quarterly basis.

The Minimum Amount for opening of account and maximum balance that can be retained is Minimum INR. 25​0/-and Maximum INR. 1,50,000/- in a financial year. Subsequent deposit in multiple of INR 50/- Deposits can be made in lump-sum and No limit on number of deposits either in a month or in a Financial year.

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How Much Will I Get Investing In Sukanya Samriddhi Yojana?

Let us take an simple example suppose Mr. Karan decided to start investing Rs.24000 every year (2000 per month) for her new born baby till she reaches 15 years of age after that No deposits are made from the 16th year of investment to the 21st year.

Assuming the current interest rate for Sukanya yojana which is at 7.6%

Total Invested Amount = ₹360,000

Total Wealth Gained On Investment made = ₹694,893

Amount You Will Get In Future (The value of your SSY will be) Maturity Amount = ₹1,054,893

If you want you can check your returns easily using moneycontain SSY Calculator here.

Having said that before you use the SSY Calculator also keep below things in mind:

  • Minimum deposit ₹ 250/- Maximum deposit ₹ 1.5 Lakh in a financial year.
  • Currently for Q1’22, the rate of interest is kept at 7.6% compounded annually.
  • Only one account per girl child who is less than 10 years of age is allowed.
  • Deposit can be made maximum up to completion of 15 years from the date of opening.
  • The account shall mature on completion of a period of 21 years from the date of opening of account.
  • The account can be prematurely closed in case of marriage of girl child after her attaining the age of 18 years.
  • Account can be opened in Post offices and in authorised banks.

 

Sukanya Samriddhi Yojana Interest Rates:

Currently for Q1’22, the rate of interest for SSY Scheme is kept at 7.6% compounded annually. Checkout the interest rates for SSY since inception of the scheme in India.

PERIOD
RATE OF INTEREST (%)
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 31.03.2022
7.6

 

 

How To Open the Sukanya Samriddhi Account?

  • SSY Account can be opened by the guardian in the name of girl child below the age of 10 years.
  • Only one account can be opened in India either in Post Office or in any bank in the name of a girl child.
  • This account can be opened for maximum of two girls in a family. Provided in case of twins/triplets girls birth more than two accounts can be opened.
  • Account will be operated by the guardian till the girl child attains the age of majority (i.e. 18 years).

 

Is It Possible to close SSY Account before maturity?

Yes, SSY account may be prematurely closed after 5 years of account opening on the following conditions:

  • On the death of account holder. (from date of death to date of payment Savings Account interest rate will be applicable).
  • Life threatening decease of a/c holder.
  • Death of the guardian by whom account operated.

Complete documentation and application required for such closure. For premature closure of account submit prescribed application form along with pass book at concerned Post Office or Bank.

 

Can Money Be Withdrawan From My SSY Account?

Yes, Withdrawal may be taken from SSY account after girl child attains age of 18 or passed 10th standard. Withdrawal may be taken up to 50% of balance available at the end of preceding financial year.

Withdrawal may be made in one lump sum or in installments, not exceeding one per year, for a maximum of five years, subject to the ceiling specified and subject to actual requirement of fee/other charges.

Having said that the SSY account only gets matured after completion of a period of twenty-one years from the date of its opening Or at the time of marriage of girl child after attaining age of 18years.(1 month before or 3 month after date of marriage).

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Conclusion:

Doing an investment with less risk may give less returns but what is most important is the peace of mind. Moreover, the returned from SSY Scheme are guaranteed and backed by the government and it is also tax exempted.

The interest rate may again go high in future for SSY scheme depending upon the prevailing situation in economy which currently is facing global crisis including India.

In my opinion if you have a girl child this is one of the best and precious gift you can give it to her without any doubt.

If, you have liked the content please do share it with your friends or on social media, as sharing do bring the good karma. If you have any questions or feedback you can leave them in comment box below.

Checkout the impact of inflation on your returns as well as your life using moneycontain inflation rate calculator and calculate your future expenses easily.

You can also check Moneycontain Monthly SIP Calculator with inflation to know how much need to invest today to reach your future financial targets.

If you want to explore the stock market and how does it work step by step than check moneycontain Free share market guide specially designed for beginners.

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Note: Please do not take this as any recommendation, to trade or invest. This is just for reference, to make you understand more about the usage of Sukanya Samriddhi Yojana and its importance, under no circumstances intended to be used or considered as financial or investment advice, a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset.

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