Sukanya Samriddhi Yojana (SSY) is the central government scheme that focuses on the betterment of girl-child in India. Through this scheme, the Indian government aims to provide social justice and economic welfare of a girl to support her education and marriage. Under this scheme, parents of a girl child or her legal guardians can build a corpus for her future.

Opening of SSY Account

Any natural/legal guardian of a girl child less than 10-years old can open an SSY account for up to two girl children by visiting the nearest post office branch or selected banks. However, the government may allow three SSY accounts under special circumstances. That is in the case of a triplet, or in case of 1 girl child plus twin girls. You can open the SSY account with an initial deposit of Rs. 250. After opening your SSY account, you must deposit a minimum of Rs. 250 every year, and you can deposit up to Rs. 1.5 Lakhs per account.

Features of SSY Account

  • You can open only one SSY account per girl-child.
  • You must submit the birth certificate of the girl-child while opening the SSY account.
  • Once opened, you can transfer the SSY account to a different bank or post office.
  • You can withdraw from the SSY account only once when the girl attains an age of 18 years towards her marriage or education.
  • You can withdraw only up to 50% of the account balance in the preceding financial year.

Rate of Interest and Tenure of SSY Account

The SSY account has a tenure of 21 years from the date of opening of the account. However, if the account holder gets married before completing the tenure, the account matures. The Indian government regulates the rate of interest for the SSY account. At present, the SSY account gets an interest of 8.4%.

Closure of SSY Account

Your SSY account matures on completion of its tenure of 21 years. On maturity, you can get the balance in your account, including the accumulated interest, on showing the documents. There is also a provision of premature maturity under the following conditions:
  • Marriage of the girl-child after she becomes 18 years old.
  • The account-holder becomes a non-resident or gives up her citizenship of India.
  • Death of the girl-child.

Tax Benefits for SSY Account

Under section 80C, depositors can claim tax deductions up to Rs. 1.5 Lakhs in a financial year for deposits in the account. Being a triple benefit scheme, you can enjoy Sukanya Samriddhi Yojana tax benefits on the following components:
  • Deposits made on the SSY account by the natural/legal guardian.
  • Interest accrued on the balance amount in the SSY account.
  • Amount received on maturity from the SSY account.
The Sukanya Samriddhi Yojana provides an excellent opportunity to build a corpus for your girl child. Since its inception, the rate of interest on this scheme has been one of the highest among different government schemes. More importantly, being a triple exempt government scheme, you can enjoy maximum tax benefits while ensuring financial independence of your girl-child.

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DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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