Written by : AK Agrawal

An experiences Chartered Accountant and Techno-Functional consultant working in industry for over 10 years dealing with multinational corporate clients. He is loves reading latest trend of technology trend.

Sukanya Samriddhi Yojana – All You Need to Know

AK Agrawal
AK Agrawal, Chartered Accountant

Dec 2, 2021 01:11

Nurturing and providing financial support for a girl is often tangled with gender stereotypes and discouragement in many parts of India. To escape from these dark shadows of discrimination, the government of India has announced several schemes and projects. The aim is to bring the breeze of development to each corner of the nation and to financially support families with economic fluxes. That being said, this blog is a comprehensive guide about the Sukanya Samriddhi Yojana and all you need to know about availing of the scheme.

What is Sukanya Samriddhi Yojana?

Adhering to this, Sukanya Samriddhi Yojana is a campaign designed to empower and enrich girl children in Indian society. The scheme literally translates into ‘Girl Child prosperity scheme’ and is proclaimed by the Prime Minister of India in association with the Beti Bachao Beti Padavo scheme. According to it, you will be able to save a lump sum amount for providing a brighter future for a girl child, despite your financial instabilities. In addition to this, the scheme directly addresses problems and perceptions about the education and marriage of girl children.

This scheme provides a high interest rate of 8.4% to 7.6% and comes with complementary tax benefits of up to Rs 1.5 lakhs under 80c. The tenure of the account is 21 years from the date of opening of the account or until the marriage of the girl after she attains legal age.

Eligibility criteria and features of Sukanya Samriddhi Yojana

The major criteria to unlock the scheme are;

  1. While opening the account, only the parents or the legal guardians are allowed, for a girl child of age below 10 years.
  2. At the time of opening the account, the child should be less than 10 years old, and the account will mature at 21 years of age.
  3. During withdrawal, the money is released to the person in whose name the account was created. Apart from this, minor relaxations in rules are created for children who are born after 2nd December 2003.
  4. In case of withdrawals, partial deductions are allowed, up to 50% for the purpose of higher education or marriage.
  5. Multiple accounts are not allowed to operate at the same time. The depositor can only open one account in the name of a girl child.
  6. The number of accounts that a family or legal guardians can open is limited to two girl children. In other words, you can only open accounts for 2 of your girl children.

Major features of Sukanya Samriddhi Yojana

  1. The investment commences at Rs 250 and will go up to Rs 1,50,000 per year.
  2. The maximum amount you can deposit in the SSY scheme is Rs. 1,50,000.
  3. If you haven’t deposited the minimum amount of Rs.250, you are entitled to pay a penalty of Rs. 50.
  4. Deposits can be made till the completion of 14 years, from the date of opening.
  5. It is possible to transfer the account in the future.
  6. A passbook will be issued to the depositors.
  7. If the beneficiary gets married before the maturity date, then the account will be automatically closed.

Sukanya Samriddhi Yojana interest rate

The current interest rate of Sukanya Samariddhi Yojana is reduced from 8.4% to 7.6%. The interest will be terminated once the girl becomes a Non-resident Indian (NRI) or a citizen of another country. However, the rate of interest is decided by the Government of India and is determined on a quarterly basis.

DurationRate of Interest
April 2020 onwards7.6
1 January 2019 – 31 March 20198.5
1 October 2018 – 31 December 20188.5
1 July 2018 – 30 September 20188.1
1 April 2018 – 30June 20188.1
1 January 2018 – 31March 20188.1
1 July 2017 – 31 December 20178.3
1 October 2016 – 31 December 20168.5
1 July 2016 – 30 September 20168.6
1 April 2016 – 30 June 20168.6
From 1 April 20159.2
From 1 April 20149.1

How to calculate Sukanya Samriddhi Yojana?

The customers who have invested in the scheme can unveil the benefits once the amount attains maturity. You can calculate the allowance that you might receive using the SSY calculator. Nevertheless, you need to ensure that you have met all the eligibility criteria that are mentioned above to deduct the amount. In accordance with the details filled in by the customer, the calculator is employed to determine the amount you can gain. It is obligatory to make at least one contribution in a year till the maturity date. The calculator will assume the depositor has made the same amount throughout the year and consecutively calculate the benefit. No deposits are necessary between 15 to 21 years of a girl child. The complete maturity amount along with interest accrued can be unlocked at the time of withdrawal.

What if you have made a less or excess amount to the scheme?

  • Lesser than the threshold – If you are not paying a minimum of 500 in a year, the account will be categorized as a default account. Nevertheless, you can activate the account by paying a fine of Rs. 50.
  • Greater than the threshold – If you have exceeded the limit of Rs. 1,50,000, then the amount will not be added to the interest rate. You can withdraw the excess money anytime you want.

What is the difference between the SSY Scheme and a Fixed Deposit

Investing in SSY and fixed deposits have its own merits and demerits. Let us take a sneak peek into the major difference between these two accounts.

  1. Sukanya Samriddhi Yojana is created to make a long-term investment, whereas Fixed Deposits can be opened for short-term or long-term benefits. FD prevents your money in times of economic downturn and helps you amplify your benefits for future utilization.
  2. Any Indian citizen can open FD; Unfortunately, the SSY scheme can be only initiated for a girl child.
  3. FD can be opened online, while the SSY scheme can be opened only through offline methods.
  4. You can have more than one FD account, but only a single SSY account can be opened in the name of a girl child.
  5. FD requires a minimum of Rs. 100 to start with, but for the SSY scheme, the minimum amount is Rs. 250.

Secure the future of your girl child with Gotaxfile

Despite being a government scheme, the Sukanya Samriddhi Yojana scheme has several limitations. If you are looking forward to starting investing for the future of your child, then Gotaxfile can back with the necessary guidance and facilitate a smooth deposition. You might lose track of the account or have tax-related queries and worries. Our skilful professionals will support you with the necessary consultation and guidance to efficiently manage your account. Get in touch with our mavens to know more!

AK Agrawal
AK Agrawal, Chartered Accountant

Dec 2, 2021 01:11

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