Eligibility, Interest Rates, Tax Benefits


Parents looking to save money for the future of their girl child can avail the benefits of Sukanya Samriddhi Yojana (SSY). One big convenience in saving in this scheme is that you can move your Sukanya Samriddhi Yojana account from one bank to another or to a post office depending upon your choice and requirements. The scheme offers a return higher than most of the small saving schemes in the market and the government backing makes it more reliable. Accounts under this scheme can be opened by any citizen for their daughter whose age is less than 10 years on the day of opening the account. Once the girl child turns 18, she will become the account holder. The investment period in this is scheme is 15 years and the maturity period is 21 years. Only 2 accounts per family are allowed under this scheme, however, in the case of twins or triplets more accounts can also be opened

Sukanya Samriddhi Yojana Deposit Rules

Sukanya Samriddhi Yojana account can be opened at any government bank or post office with an initial deposit of Rs 250. The depositor needs to maintain a minimum deposit of Rs 250 annually failing which a penalty of Rs 50 will be charged. An account that fails to maintain the yearly minimum deposit limit becomes a defaulted account but can be normalised at any time before the end deposit period of years from the date of opening the account. The defaulted account can be normalised by paying the penalty for each year of default and making the minimum deposit of Rs 250 for every year of default. If the account is not regularised within the period stated, the entire deposit made before the default year will be liable for an interest according to the prevailing interest rate. The upper limit of deposit in the Sukanya Samriddhi Yojana account is set at Rs 1.5 lakhs annually and any deposit made over this limit will be refunded to the depositor immediately.

Interest Rate and Tax Benefits

For the quarter ending on September 2021, the deposit in the Sukanya Samriddhi Yojana account will be entitled to an interest rate of 7.6 per cent per annum. The interest earned is credited to the account at the end of every financial year and is eligible for exemption under the Section 80C of the Income Tax Act, 1961

Premature closing

After 5 years of opening, the Sukanya Samriddhi Yojana account can be closed prematurely in case of the account holder’s serious illness or the death of the guardian who managed the account on the girl’s behalf. In case of the death, PO saving account rate will apply from the date of death to the date of final payment.

For the premature close of the account, application along with required documents have to be submitted to the bank or the post office

Withdrawal Rule

Once the girl child turns 18 or completes class 10th, she is allowed to withdraw from the account. A maximum withdrawal of up to 50 per cent of the amount available in the account at the end of the previous fiscal year is permitted for the purpose of education or marriage of the account holder. Withdrawal can either be made in a lump sum or in an instalment of up to once a year for 5 years according to rules applied.

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