Guide to Sukanya Samriddhi Yojana: Benefits and Eligibility

Mini Balakrishnan

• September 7, 2024
• 9 min read
• Saving

On January 22, 2015, Prime Minister Narendra Modi unveiled the Sukanya Samriddhi Yojana program at Panipat, Haryana. The program seeks to improve the lives of girls throughout the country by ending practices such as sex assignment and discrimination based on gender, as well as by ensuring their safety and encouraging their increased engagement in society via education and other means. This article covers the finer points of this initiative, such as the sukanya samriddhi yojana interest rate, advantages, eligibility requirements, and more.

An Overview of the Sukanya Samriddhi Yojana

Information crucial to understanding the SSY scheme and  rates you need to know when using the Sukanya Samriddhi Yojana calculator, is as follows:

Advantages of Sukanya Samriddhi Yojana Program

The Beti Bachao Beti Padhao campaign’s Sukanya Samriddhi Yojana (SSY) plan was created to guarantee a female child’s future. The primary advantages of the SSY plan are as follows:

• The interest rate fell from 8.4% to 7.4%.
• Up to Rs. 1,500,000 in tax advantages.
• Accounts are transferable.

Contributions to the child insurance plan may finance the marriage and education of young women. You may establish a Sukanya Samriddhi Yojana account at any participating bank or post office. Contributions to the plan qualify for tax breaks of up to Rs.1.5 lakh under Section 80C of the 1961 Income Tax Act.

Sukanya Samriddhi Yojana Rate of interest

The SSY plan interest rate has just been lowered from 8.4% to 7.6% and is compounded annually. The girl will not get any interest if she becomes an NRI or a foreign national after the scheme’s term has ended. Interest rates are set by the government once each quarter.

In the table mentioned below, we can see the interest rates that have been provided via the program.

Withdrawal Guidelines for Sukanya Samriddhi Yojana

The following are details about the SSY account’s withdrawal policy:

• At the end of the account’s term, the female child is entitled to receive the whole balance of the account, including all accrued interest. However, the required paperwork is as follows:

1. A request to have the money withdrawn as an application.
2. A valid form of identification.
3. Validation of the given address.
4. Evidence of citizenship.

• Once a girl reaches the age of 18 and finishes high school, she can apply for a withdrawal to further her education. The funds must be used toward the admissions fee or any costs assessed upon entry.

• Requests for withdrawals are accompanied by supporting documents such as confirmation of acceptance to the college or university and the fee receipt.

• Half of the previous year’s maximum withdrawal amount is available for withdrawal. Withdrawal options include a single sum or five equal payments.

Sukanya Samriddhi Yojana Payout Rules

These are the conditions under which the account may be closed early:

• If a girl is getting married before she becomes 18, she may withdraw from SSY early without penalty. However, to get the benefit, an application must be filed at least a month before the wedding and no later than three months after the wedding. Age-verifying documents for the girl must also be presented.

• The account will be closed if the female kid becomes a foreign national or permanent resident. A girl’s caretaker or the girl child is legally obliged to report any such status change within one month of the event. If the female child dies away, her guardian may access the funds in the account. The death certificate should be shown, though.

• Suppose an account has been established for a female child for five years or more, and the bank or post office determines that the girl child is having difficulty maintaining her account. In that case, the girl child’s guardian or the girl child herself may choose to have the account closed early.

• Suppose an account has been established for a female child for five years or more and the bank or post office determines that the girl child is having difficulty maintaining her account. In that case, the girl child’s guardian or the girl child herself may choose to have the account closed early.

Account closure requests for non-postal reasons will also be granted, although the interest earned on deposits will be capped at the standard postal service rate.

Features of the Sukanya Samriddhi Yojana

In the table below, you’ll find information about the most important parts of your SSY account:

Sukanya Samriddhi Yojana Tax Incentives

The tax advantages of the Sukanya Samriddhi Yojana are outlined below.

• Contributions to the plan qualify for tax breaks of up to Rs.1.5 lakh under Section 80C of the Income Tax Act, 1961.
• Also, you won’t have to pay taxes on any interest earnings you make.
• The money you get when your investment matures or when you cash out is exempt from taxes.

Eligibility for the Sukanya Samriddhi Yojana

Details on who may open a Sukanya Samriddhi Yojana account is provided below.

• The girl’s guardian or parent may sign up for an SSY account on her behalf until she is 10.
• The Indian female must be a legal resident of the country.
• Two female family members may each create a separate account.
• Should a set of identical twin girls need a third SSY account, it may be done.

Documentation Required To Create An SSY Account

Here is a list of the paperwork you’ll need to get an SSY account up and running:

• The SSY registration for new accounts.
• Please provide a copy of the girl’s birth certificate when creating an account.
• The depositor’s identification and current address must be shown when account opening.
• A doctor’s note must be provided if numerous children are delivered in the same delivery.
• Anything else a financial institution or postal service could ask for.

How To Activate A Sukanya Samriddhi Account?

If you want to create a Sukanya Samriddhi Account, follow the instructions below.

• The application may be filled out at any bank or post office location.
• You should send in the completed form and supporting materials as soon as possible.
• Make your first investment, ranging from Rs 250 to 1 lakh.
• An SSY account will be created in your name after the bank or post office has validated the information provided on the application form and received the required payment.

How To Fill Out A Post Office SSY Account Form?

• If you want to open an SSY account, you can go to the post office closest to you and ask for an application.
• Include your post office savings account number if you have one.
• The section labeled “To The Postmaster” provides the name and location of the specific post office branch where the letter will be delivered.
• Put up the applicant’s picture on the website.
• Please provide the applicant’s full name and the “Sukanya Samriddhi Yojana” option they selected.
• Please fill out the fields labeled “Account Type” and “Account Holder Type” with the appropriate details.
• Don’t forget to mention the first deposit you want to make after opening the account.
• Please provide your gender, Aadhaar number, PAN, address, and other pertinent information.
• You must sign page 1 to authorize the use of the information contained below.
• If you’d like to set up recurring deposits of this amount, you may do so by filling out the information requested in section (5) on page 2.
• Ensure that the SSA box is checked to indicate no additional SSY accounts have been established.
• Don’t forget to sign and date it.
• Give specifics about the nomination.
• If the applicant cannot read or write, you should have two other people sign as witnesses.
• Lastly, please provide the location, date, and signature after the nomination area.

Online SSY Payment Instructions

• Get the IPBB app from the app store on your mobile device.
• Move the funds from your checking account to your IPBB account.
• To participate in the Sukanya Samriddhi Yojana, go to the ‘DOP Products’ section of your IPBB account.
• Just provide us with your SSY customer ID and account number.
• You may choose your desired monthly payment and the length of time you want to pay it.
• As soon as IPBB establishes a reliable payment system, it will notify you.
• You will be informed when funds are moved to your IPBB account.

FAQs

Q. What is the Sukanya Samriddhi Scheme’s policy on allowing older girls to participate in the program?

The government does not want a select few individuals to lose out on the benefits of the recently announced Sukanya Samriddhi plan because of age discrimination. Therefore, the plan is available to any female kid who turns 10 precisely one year before the beginning of the scheme. Thus, the Sukanya Samriddhi Scheme is open to all girls born between December 2, 2003, and December 1, 2004.

Q. How is the money put into a Sukanya Samriddhi Account taxed?

Taxes can’t be taken out of your pay till you reach Rs.1,50,000. The Income Tax Act’s Section 80C only applies to contributions up to this limit; therefore, any amount over it will not be tax deductible.

Q. When may you start contributing to a Sukanya Samriddhi Account?

Sukanya Samriddhi Account may be opened for a girl by her parents or legal guardian.

Q. Is the Sukanya Samriddhi Scheme available to Non-Resident Indians?

Unfortunately, the Sukanya Samriddhi Scheme currently does not extend its coverage to such NRIs, and there has been no authorized word on the subject yet.

Q. What would happen if the female child beneficiary died suddenly?

If a female child passes away before age 18, her Sukanya Samriddhi Account will be closed, and the funds will be distributed to her legal guardian or parents.