15 things you must know about Sukanya Samriddhi Yojana Scheme – SSY

A natural or legal guardian can open Sukanya Samriddhi account in the name of a girl child with any branches of India Post or Department of Post office or in a bank. It’s a scheme launched by government as part of ‘Beti Bachao Beti Padhao’ campaign.

Here are 15 key things that you should know about the Sukanya Samriddhi Yojana Scheme:

  1. A person can open only one account in the name of a girl child up to a maximum limit of 2 accounts if they have two different girl children. This means you can’t open two accounts in Sukanya Samriddhi Yojana Scheme for one girl. Account can be operated by the girl child when she turns 10.
  2. Account can be opened up to the age of 10 years from the date of birth of the girl child.
  3. You are required to deposit a minimum of Rs 1,000 up to a maximum limit of Rs 1,50,000 in year. Any amount in the multiplication of Rs 100 can be deposited. A account can be regularised if its not operating by paying a penalty of Rs 50 per year. Please note, there is no limit on number of deposit transactions under Sukanya Samriddhi Yojana Scheme.
  4. Account under Sukanya Samriddhi Yojana Scheme will be operative for 21 years from the date of its opening or till the marriage of the girl child after she turns 18 years. The account under this scheme matures on the completion of 21 years for the date of opening or whenever the girl child is married, whichever is earlier. However, deposits in to the scheme has to be made till 14 years from the date of opening. For instance, if you have opened the account when the girl child is 10 years old, then you can contribute till she turns 24 years (10+14). Account will mature when she turns 31 years or till the marriage, whichever is earlier.
  5. From the date of opening the account, you can deposit till the completion of 15 years, after it the account keep earning interest on the balance amount.
  6. Partial withdrawal upto 50% is allowed for higher education expenses after she turns 18 years.
  7. Deposits into this scheme is eligible for tax deduction under section 80C up to a maximum limit of Rs 1,50,000 along with other eligible investments as specified in this section.
  8. Interest earned on sukanya samriddhi account and maturity proceedings are exempted from tax.
  9. Deposit into sukanya samriddhi account can be made in cash or by cheque or any other mode.
  10. In the event of death of the girl child, on production of death certificate, account can be closed. In such case, the balance if any along with interest till the month preceding the month of the premature closure, will be paid to the guardian of the account holder.
  11. For the purpose of marriage or education, 50% of the balance at the credit of the account at the end of preceding financial year is allowed to be withdrawn after the girl child turns 18 years.
  12. If the gill child sifts to a place, then the account can be transferred. It allow you to transfer the account to anywhere in India.
  13. As per india post website, rate of interest is 8.5% per annum.
  14. NRI can not one a Sukanya Samriddhi Yojana account. However, if she is a resident indian citizen at the time of opening the account, then account can be continued till maturity or closure.
  15. Premature closure is allowed in case of death of the girl child, medical emergency, death of contributors

To know more about Sukanya Samriddhi Yojana, you can visit any branches of the post office or authorised bank in India.

You can also take benefits of public provident fund (PPF) which gives you tax deductions in addition to good risk free return.

If you are a risk taker, then we suggest you to start investing in mutual funds through a SIP. You can take help of a financial advisor to find out best mutual fund schemes in India.

is a fellow member of the Institute of Chartered Accountants of India. He lives in Bhubaneswar, India. He writes about personal finance, income tax, goods and services tax (GST), company law and other topics on finance. Follow him on facebook or instagram or twitter.