A daughter remains a daughter for her entire life. Still, people treat daughters like a burden. To give more power in the girl child’s hands, the government is taking many steps. This article will discuss Sukanya Samriddhi Account-govt’s special scheme for girl child-features, review, and benefits.
Sukanya Samriddhi Yojana
The Indian government frames Sukanya Samriddhi Yojana. It came into action in the wake of the discrimination faced by the girl society. It’s furnished under the plan Beti Bachao, Beti Padhao. By this, you can create an account for your daughter to benefit from the later stage.
In the current scenario, SSY investment is one of the smartest investments that you can choose to go for. No other savings plan provides such a huge interest rate for the savings you make. Even the PPF scheme offers a lower interest rate than this. Added to that, the tax exemption benefits are another attractive option provided by it. As per Section 80C of IT Act, 1961, you’re tax-exempt. However, it has certain conditions that you’ll come across in the upcoming section.
Apart from that, it is also a government proposal which adds to its security. Thus, in short, it is one of the best investments you can make for your daughter. So, let’s know more about its eligibility, features, benefits, etc.
Features Of Sukanya Samriddhi Account
As we have known about Sukanya Samriddhi Yojna, let’s look at its features as well-
i. Unlike other schemes, you can create two accounts at a time if you’ve two daughters. Thus, there lie no such restrictions that only one or two daughters can create.
ii. Even there are cases where the girl is an orphan. That is, both the father and the mother have met their untimely demise. In such a case, the Sukanya Samriddhi Yojna members consolidate the girl child’s guardians to create an account. In the later phase, we will discuss how guardians can create an account for their girl child.
iii. Per year, you have to submit a small amount towards it, i.e., Rs. 250. In previous years, it was Rs. 1,000. But, realizing the average economic stature of the country, it got modified. However, make sure you pay it every year without missing it. Otherwise, you may lose your account.
iv. Unlike all other schemes, you can enjoy a complete tax-free benefit in this scheme. As per Section 80C of the Income Tax Act, 1961, the entire procedure is tax-free. You will come to know in detail about it in the next sub-topic.
v. If your daughter passes away in a mishap, the account ceases to function. In this situation, you cannot go for handling the account on her behalf.
vi. You just need to pay a maintenance fee for your daughter’s school every year; this scheme to have. You have to pay Rs. 50 towards Sukanya Samriddhi Yojna. It’s deducted on an annual basis for the maintenance of your scheme.
vii. You can make your remittance towards this scheme by money in hand, DD, or even in the form of a cheque. Since the maximum amount of Rs. 1.5 lakh also lies; you cannot pay this by cash. So, for such high amounts, you’ve to make a DD or cheque.
viii. After your daughter reaches an adult’s age, she can go for a maximum withdrawal of 50% of the total money deposited in the account.
ix. The tenure period of the account is 21 years. That is, from the date you created until the date of her marriage or the completion of the tenure period, the account remains. Either of the above two reasons, if arises earlier, it matures.
For example, you created your daughter’s account on 29th May 2000. Thus, by May 2021, it will mature. Otherwise, if you decide to make the wedding of your daughter, it can mature beforehand.
x. After the tenure ends, you can withdraw the entire amount. It includes the principal amount with interest added.
Facilities Of Sukanya Samriddhi Account
As you’ve gone through the features under Sukanya Samriddhi Yojna (SSY), you must have noticed how it provides huge benefits. So, let’s know more about them in detail-
a. A Lofty Interest Rate
No other savings plan in India provides such a high, appealing interest rate than Sukanya Samriddhi Yojana. Presently, the subscribers are enjoying a high-interest rate of 7.60%. It got modified on 1st July 2020. There are about four modifications, round the year. That is, the rate goes up and down every three months. Yet, it still is one of the highest providing interest rates in the savings plan.
b. Tax Exemptions
As I have already mentioned above, this scheme furnishes a tax-free benefit. The process is even made stronger and secure by providing a backbone under Section 80C of the Income Tax Act, 1961. However, like everything else in this world, there also exists a zenith level to it. That is, the tax-free zone is applicable up to Rs. 1.5 lakh. Even the interest that gets added to the principal amount is also exempt from tax imposition.
c. Premature Withdrawal
As I have stated, its tenure period ends within 21 years from the date of creation. Added to that, you have to submit continuously for 14 years into this plan. Your daughter can extract the amount after attaining the age of an adult, i.e., 18 years. However, if your daughter is getting married, you can go for a premature withdrawal.
For your daughter’s higher education, you can extract about 50% of your entire amount in the account. For instance, if the total amount in the account is 1.2 lakh, you can withdraw Rs for higher education. 60,000.
d. Maturity Benefits
Your daughter can avail of the maturity benefits after becoming 18 years of age or getting married. One of the above incidences occurring first is taken into consideration. The total amount of withdrawal means the sum of the principal amount, added to that the concerning interest rate.
e. Fluidity Nature Of Sukanya Samriddhi Yojana
Considering the country’s critical scene related to the girl child, the government is enhancing the fluidity. Look at the steps mentioned below to know more about the fluidity of SSY-
i. The minimum amount you can devote towards it for the creation is Rs. 250.
ii. After your daughter attains 10 years of age, she can handle it on her own. However, you’ve to pay for her account.
iii. In case you shift to another state, you can even shift to that state.
iv. There is also an option of the closure of your scheme if you’re financially down.
f. Interest Gets Accrued Up At The End Of The Tenure
In Sukanya Samriddhi Yojana, the account deposition ends after 14 years. After that, if you don’t withdraw the amount, the interest gets added up. Thus, for an additional 7 years, the interest gets added to the principal amount even if you don’t deposit anything. No such scheme offers such advantages. Isn’t it?
g. Your daughter Gets The Entire Amount
After the tenure ends, your daughter can extract and avail of the total amount. Thus, by this scheme, she can set up something on her own and make a living. Such schemes need to broaden up more among the people to encourage girl empowerment.
Rate Of Interest Of Sukanya Samriddhi Yojana
The rate of interest of Sukanya Samriddhi Yojana SSY varies every 3 months in a year. The present rate is 7.60%. So, let’s have a look at the interest rate that prevailed in the last few years.
Eligibility Of Sukanya Samriddhi Yojana
- You can enroll it when your daughter is born till she attains 10 years of age.
- It gets permitted only for the girl child.
- Only the legal custodian or own parents can fill the form for their girl child.
- The least amount for you to deposit is Rs. 250 while the greatest is stuck at Rs. 1.5 lakh.
- You can extract it on acquiring 18 years of age.
Documents Required For The Sukanya Samriddhi Yojana(SSY) Account
Mentioned below are the documents that you need to keep handy with you
1. Birth certificate of your daughter.
2. Your ID proof, in case you’re going to fill the form for your daughter. It includes your Aadhar card, PAN card, etc.
3. Your residential proof is also a requisite document. You can show it by providing a Xerox copy of your electricity bill, driving license, etc.
4. Apart from every document, keep with yourself a passport-sized photograph of your daughter.
How To Open Sukanya Samriddhi Yojana In Online Mode
Everything is online these days, from ordering pizza to making a testament. So, let’s know how to create an SSY account in the online mode.
Downloading the form- You can download from any authentic sites like-
- The Indian Post
Apart from these, you can also go for many joint sector banks like State Bank of India, Bank of Baroda, etc. There are a few independent banks as well that provides the opportunity for this scheme. Banks like HDFC Bank, AXIS Bank, ICICI bank, etc.
Although different banks are offering this scheme, yet the information asked is the same. You must mention about yourself, your relationship with the girl, her age, etc.
Look At The Details Below
- Name of your daughter (or the girl, in case you’re her guardian)
- Your name (your relationship with the girl)
- The first annual amount that you deposit
- Cheque/the Demand Draft number (in case you make payment in the form of cheque or DD)
- DOB of your daughter
- Information regarding your daughter’s birth certificate. It may include the date when it got furnished, etc.
- Your identity proof information. For this, as I’ve mentioned in the documents section, keep with yourself your Aadhar card, PAN card, etc.
- The current and permanent residential address.
- KYC verification record. This includes your PAN card number or voter ID, etc.
As you fill-up, this information, attach the required documents as mentioned. Then provide it in the office. If you’re opening it in a bank, you’ve to submit to a bank or go to the post office.
How To Check Balance In Sukanya Samriddhi Yojana Account
You can check the balance in your SSY account in the online mode. Yet, it’s possible only if you have an option of the net banking or mobile banking option. Yet, for that, you must make sure your account well tied-up with the net banking or mobile payment option. Added to that, you can tie-up your Sukanya Samriddhi Yojana (SSY) account with your online payment. You can do it by paying the annual charges in the online mode.
This can even make your work easier. You can pay the charges with just 2-3 clicks. Apart from that, you can also keep an eye on the balance in your account.
Apart from that, you can also check the balance in your Sukanya Samriddhi Yojana account when visiting the bank. The bank where you opened your account while updating your passbook can also check your balance. If you’ve opened the account in the post-office, you need to carry your passbook with you as well. Just like in the bank, you can get it verified by the concerned authorities.
However, in the present scenario, there are a few improvisations made in this regard. That is, you cannot check your balance just by sitting at home. You have to visit the concerned bank or post-office or get a net banking option for this. Thus, you can consider it as one of the disadvantages.
Withdrawal From Sukanya Samriddhi Yojana
i. Your daughter can withdraw the entire amount after reaching the age of 21 years. After that age, whenever she wants, she can go for it. Even if the amount is not withdrawn after 21, interest ceases to get added to it.
ii. You can go for an early extraction from the account for higher studies. However, it is validated only when she turns 18. Apart from that, you can extract only 50% of the total amount in it.
How To Calculate Sukanya Samriddhi Yojana Account
You can calculate the amount in two ways:
- Online Method
- Offline Or Manual Method
1. Online Method
- Go to the authenticate site of Sukanya Samriddhi Yojana.
- There you’ll find an option showing ‘CALCULATOR.’ Click on it.
- A new page opens where you’ve to provide the information about your daughter. Information about her age, the date when you started, and the annual amount that you deposit.
- After submitting the details, tap on the option showing ‘CALCULATE.’
- After some time, you can get the page the entire details you wanted.
- It will show the amount you gave to date
- The total interest added and the amount to date
- The total amount you’ll get when the tenure ends.
2. Offline Or Manual Method
To calculate your balance in the offline method, you need to calculate manually. Although it’s a tedious process, still, who knows when you might not have internet with you? So, there’s certainly nothing wrong in knowing anything extra, right? Thus, let’s glance at it.
In the manual method, you’ve to take the help of the excel sheet. In the excel sheet, you’ve to make the required columns and carry out the procedure as mentioned-
a. The current age of your daughter.
b. Provide for how many years you’re depositing in the account. Also mention the total annual deposits till 14 years. For example, if you opened your daughter’s account at 6 years and deposited Rs. 2,000 annually, you can continue this until 14 years.
c. Date when you activated the account and started investing.
d. Next, mention the annual charges you devote towards the SSY.
e. You’ll get the total amount with interest added up at the end of the year in the fifth column.
f. Here, you’ve to mention the current interest rate. As I have already mentioned, the interest rate gets modified every quarter. So, keep an eye on it.
g. Here, you’ll finally get the total amount at the end of the accounting year.
Well, the manual method seems a bit confusing, right? True though! So, let’s know a few more advantages of online calculator over manual method-
- Since it is a machine, it won’t make any inaccuracy. But you can.
- You can know the total amount you can get after the tenure ends.
- You can get the result within a minute or two, unlike the manual method.
- You can even set the option of automatic calculation. This will give a result of the automatic yearly calculation.
Wait, it will be more with one or two examples. So, let’s work on it. Before that, let’s know how it works.
i. It presumes that you devote the same amount of money to it every year.
ii. You’re free to contribute for the first 14 years. After that, the interest gets added to the amount from the last year.
iii. The maturity time is of 21 years. Thus, for 7 years, no amount you need to deposit.
Example-1: Mr. Dutta has two daughters. The first one is 4 years old while the second one is just a few weeks. He made two accounts at a time for his two daughters. For the first daughter, he gave Rs. 1,000 per month, while for the second, he gave Rs. 2,000. Now let’s be more clear from the two examples below-
Solution: The formula for manual calculation is: A=P (1+r/n)^n
A is the compound interest.
P is the Principal amount.
r is the interest rate
n is the number of times interest gets accrued annually
For the first daughter,
P = Rs. 2,000
Interest rate = 7.6%
Tenure amount = 14 years
Payment is made annually.
Thus, he invested a total of Rs. 14,000, and his daughter would get a return of Rs. 39,339.50. Hence, he earned a total interest of Rs. 25,339.50.
Now, let’s calculate for the second daughter-
As the account is made in the same year as above, the interest rate remains the same, i.e., 7.60%
However, the principal amount is doubled, i.e., Rs. 2,000.
So, let’s start now!
Now, see the difference. He invested Rs. 28,000 as a whole and got a return of Rs. 84,131. Total interest of Rs. 56,131 gets added. This amount is enough to purchase a bike as well. I need not say how good this scheme is. Isn’t it?
Banks That Provide Sukanya Samriddhi Yojana
Not every bank allows an option for creating an account under SSY. However, there are still some banks like-
- State Bank of India
- Union Bank of India
- Central Bank of India
- Bank of Baroda
- IDBI Bank
- ICICI Bank
- Canara Bank
- Axis Bank
- UCO Bank
- Indian Bank, etc.
Thus, there is a long list, and there are more. However, these are some reliable banks that you must give thought to for creating an account under SSY.
Points To Note
- You can invest in this scheme for a max of 14 years, starting from the date of furnishing.
- The maximum age for this tenure to end is 21 years.
- You can deposit the required amount in your daughter’s account in the multiples of 250, i.e., 1000, 2000, etc.
- As I have already mentioned, the minimum value lies at Rs. 250. Earlier, it stuck at Rs. 1,000. But realizing the average economic condition of the country, it got decreased.
- After a month of creating your account, it contains your daughter’s name, annual devotion of money towards it, and her residential address.
- In case you lose the authenticate passbook, you can issue a duplicate one. However, you’ve to pay a penalty fee of Rs. 50 for that.
- This scheme is limited only to the people of India. Thus, there’s no such provision for NRIs under this.
- You can even create an account for your daughter, even if she’s not your own but adopted.
- You can withdraw from the account before the tenure period ends in certain cases. It’s feasible only if she’s getting married or for higher education. Apart from that, if she’s suffering from a serious illness, you can withdraw.
- After your daughter turns an adult, she can withdraw it herself.
Review Of Sukanya Samriddhi Yojana
The girl child has always faced a backward rejection from society. Thus, it is an initiative framed by the Indian government to give a sense of strength to the women society. Added to that, the results are even visible. There has been a reduced female mortality rate and more acceptance of daughters. Apart from that, the interest rate is too attractive not to let go.
The Requisite Period In Sukanya Samriddhi Yojana (SSY)
Even though this scheme ends when the girl attains 21 years, there is still a lot of confusion. Thus, to make it more precise for you, I’ve divided it into a few groups. Let’s have a look.
a. Creating Your Account Between 0-10 Years Of The Age
As mentioned in the eligibility criteria, the maximum age of the daughter must be below 10 years. Once she exceeds the age group, it’s no longer applicable to her. Therefore, the birth certificate is a requisite document in terms of form fill-up. Apart from that, you can create a max of two accounts for your two daughters, if any. For one daughter, you must create one account.
b. 5 Years Of The Age
It is the minimum age at which you can slam the account. However, it’s validated only for certain specific causes like severe therapeutic issues, etc.
Apart from that, the amount you get is the amount with interest in the total principal amount.
c. 10 years Of The Age
After your daughter is above 10 years of age, she can handle her account. She can make her contribution. Even though she hasn’t yet started earning wages, so you have to pay for her.
d. 18 years Of Age
Your daughter can go for a withdrawal at the age of 18 for her higher education. For higher studies, about half of the total accrued amount can get extracted. However, for marriage, she can withdraw the entire amount.
The withdrawal due to higher studies requires entire details of the institution where she’s going to enroll. This might include the fee slip of the institution and all other expenditures.
e. 21 years Of The Age
Irrespective of how old your daughter is, the account continues to work. It continues to work until the completion of its tenure period. That is 21 years. However, you can invest in it for only the first 14 years. After that, no money will get into it. Only the interest gets accrued to the principal amount.
Thus, if you make your daughter’s account when she’s 6 years old, the tenure ends at her being 27 years old. However, if she has decided to marry when she has exceeded 18 years, she can withdraw the entire amount. Yet, you’ve to prove with a legal affidavit that she’s above 18 years.
Early Slamming Of Sukanya Samriddhi Yojana
You can close your account before the tenure in certain cases. There is a situation like marriage, higher education, or extreme health disorder. Let’s know about them in detail.
a. The Unfortunate Demise Of The Girl
In case, unfortunately, your daughter passes away, you can appeal for a complete closure of the investment. After the demise of the main holder, you cannot carry forward it. In this, you can avail of the entire amount along with interest added. However, for this, you must provide the death certificate of your daughter.
b. Financially Down
There are still thousands in this country who die in starvation. They hardly get enough to fill their stomachs twice a day. In that situation, an amount like Rs. 250 also holds big. Thus, in such cases, they can appeal for an early extraction and closure of the account.
Attaining the age of marriage, she can go for a complete withdrawal from the account. However, she must be above 18 years, at least.
d. Higher Education
As I’ve already mentioned above, after your daughter attains an adult’s age, i.e., 18 years, she can extract. She is free to withdraw up to half of the total amount in the account. There are, however, a few more requisite documents related to the institutions that she must attach for the successful withdrawal.
1. Is Sukanya Samriddhi’s scheme the best investment for my girl child?
2. What will be the maturity amount in Sukanya Samiddhi Yojana?
1. Your yearly depositions
2. The prevailing interest rate. Since it varies every 3 months, so it’s better to keep it in mind.
3. Discontinuity, if any.
4. The period when you’re opting to close the investment.
Considering the above factors, the calculator takes into account the requisite data. Then finally, after the end of the tenure period, you can get your desired amount. As I’ve already mentioned above, you can even go for manual calculations.
3. How many times can we deposit in Sukanya Samriddhi yojana?
4. Is Sukanya samriddhi better than PPF?
i. Both are in the clutches of the government, thus secure.
ii. Both are meant for quite a very long term of the investment.
iii. Both impose a very high rate of interest as compared to other saving plans in India.
iv. Both provide the benefit of being tax-exempt. However, there lie certain conditions to it.
Now, coming to the differences, for SSY, there lies a certain barrier for the tenure period. That is, it ends within 21 years. However, there lies no such factor for PPF.
Again, SSY holds a greater interest rate than PPY. This again shifts the standards to SSY. Thus, it is hard to compare, but yes, both are the best for safety and security.
6. Can I transfer my SSY from one bank branch to another?
7. Is there any penalty for the discontinuity in annual money submission?
8. Will the interest rate remain the same this year?
9. What is the extraordinary tax benefit proposed by SSY?
10. What is the mode of remittance that I need to follow?
The mode of deposits is almost the same as other schemes. They are-
- By money
- By cheque
- By demand draft
- By net banking or online payment.
In case of a demand draft or cheque, you must mention the name of the manager of the bank where you’ve opened the account. Otherwise, if you opted post-office, name it in the name of the post-master of that office.
11. Is Sukanya Samriddhi Yojana (SSY) the best scheme for my daughter?
By now, you must have known all the information regarding SSY. So, if your daughter is yet small, what are you waiting for? Sukanya Samriddhi is one of the best schemes for the girl child.