Sukanya Samriddhi Yojana (SSY) Interest Rates November 2024

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Sukanya Samriddhi Yojana is an initiative launched by Prime Minister Narendra Modi, the Central Government, as a part of the “Beti Bachao Beti Padhao” campaign. The sole objective of this tax-saving scheme is girl child prosperity.

Scheme Name	Sukanya Samriddhi Yojana (SSY)
Current Interest Rate	8.00% p.a. p.a.
Minimum Deposit	Rs. 250
Maximum Deposit	Rs. 1.5 Lakhs per annum
Eligibility	Girl Child less than 10 Year Old
Pre Matured Withdrawal	Partially allowed for higher eduction
Maturity Period	21 Years
Tax Benefits	up to Rs. 1.5 lakhs under Section 80C of the Income Tax Act, 1961

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana is a Central Government savings scheme with an intention to secure a girl child’s future. The girl child must be 10 years of age or younger to open an account under this scheme. This scheme carries a higher rate of interest, tax deduction, apply online benefits.

Use Scripbox’s Sukanaya Samriddhi Yojana Calculator 2024 to estimate your returns

SSY Interest Rate 2024

Period	Interest Rates
April 2023 – November 2024 2023	8.00% p.a. p.a.
1st April 2020 – 31st March 2023	7.60% p.a.
1st July 2019 to 31st March 2020	8.40% p.a.
1st Oct 2018 to 30th June 2019	8.50% p.a.
1st Jan 2018 to 30th Set 2018	8.10% p.a.
1st July 2017 to 31st Dec 2017	8.30% p.a.
1st April 2017 to 30th June 2017	8.40% p.a.
1st Oct 2016 to 31st March 2017	8.50% p.a.
1st April 2016 to 30th Sept 2016	8.60% p.a.
01st April 2015 to 31st March 2016	9.20% p.a.
3rd Dec 2014 to 31st March 2015	9.10% p.a.

The interest rate is fixed by the government and reviewed quarterly while compounded annually. Current SSY interest rate for the this quarter is 8.00% p.a..

Eligibility for Sukanya Samriddhi Yojana

The following are the eligibility criteria:

The girl child must be ten years of age or younger.
The guardian or either of the parents of the girl child can open the account.
Only one account can be opened per girl child.
A family can open a maximum of two SSY accounts, i.e. secure two girls under this scheme.
In the case of twin girls, the guardian or parents can open a third account.

How to invest in Sukanya Samriddhi Account Scheme?

You can open the account at a post office, or apply online at a designated branch of a nationalized banks or a private bank.

The application form along with the following documents

Birth certificate of the girl child
Address proof of the applicant parent or guardian
Photo ID of the applicant parent or guardian
KYC proofs i.e Aadhar card, PAN, Voter ID, and Passport

Benefits of Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana scheme was introduced as a part of Beti Bachao, Beti Padhao initiative. This scheme provides various benefits for the girl child –

Investing in SSY provides tax benefit up to Rs. 1.5 lakhs under Section 80C of the Income Tax Act, 1961.
The minimum amount for investment in a year is Rs. 500, giving the parents/guardian a flexibility for depositing money. The maximum that one can deposit in a year towards SSY is Rs. 1.5 lakh.
The government of India backs this scheme. Thus, there is a guarantee of returns for the girl child.
There is a higher fixed rate of return when compared to other government-backed tax savings schemes such as PPF. (the current rate of interest is 8.00% p.a. for FY 2022-23)
One has to stay invested in this scheme up to 18 or 21 years of the girl child, and it gives a benefit of the power of compounding for long term investment.
The maturity proceeds of the SSY account are paid to the girl child along with the accrued interest. This gives financial independence to the girl child at that age.
A unique benefit of SSY is that even after maturity, if the account is not closed by the account holder, interest shall be payable till the final closure of the account.
The parent/guardian operating the SSY account can get it transferred from one part of the country through another (bank/post office) in case of their transfer.

List of Banks Offering Sukanya Samriddhi Yojana (SSY)

State Bank of India
Axis Bank
ICICI Bank
Vijaya Bank
Allahabad Bank
Punjab and Sind Bank
Andhra Bank
Bank of Baroda
Canara Bank
Bank of India
Bank of Maharashtra
Central Bank of India
Corporation Bank
Indian Overseas Bank
United Bank of India
Dena Bank
Indian Bank
UCO Bank
Punjab National Bank
Union Bank of India
Oriental Bank of Commerce
IDBI Bank

Sukanya Samriddhi Yojana (SSY) Withdrawal Rules

You can withdraw the investment amount in the scheme after the completion of 15 years of investment or premature or partial withdrawal.

Withdrawal on investment maturity

On maturity of the investment, the principal amount and interest can be withdrawn. The withdrawal is allowed on submission of the following documents:

Application form for withdrawal
ID proof and address proof
The withdrawal is allowed for higher education if the girl child attains the age of 18 years and completed her 10th standard. The amount withdrawn must be used for paying the admission fee or any other fee charged by an educational institute.
The proof of admission to an education institute must be presented while applying for withdrawal. The proof of admission such as fee receipt, admission card, and student ID.
The maximum amount that can be withdrawn is 50% of the total amount available in the previous financial year. The amount can be withdrawn in 5 installments or at once.

Premature withdrawal of investment

A premature or partial withdrawal of investment is allowed on the occasion of the marriage once the girl child attains the age 18 years. The application must be filed 1 month before the marriage along with age proof of the girl child.

Alternate to Sukanya Samriddhi Yojana (SSY)

The Sukanya Samriddhi Yojana (SSY) scheme is an initiative by the government to secure the future of a girl child. Children’s mutual funds are funds that serve the same purpose of securing a child’s future. This mutual fund carries a higher interest rate than other mutual funds.

Children’s mutual fund

The children’s mutual fund can be made by the legal guardian or parents of the minor child to secure the future of the child. The funds are invested in both equity-oriented mutual funds and debt-oriented mutual funds. The ratio of the investment depends on the scheme chosen by the parents. If the funds are invested more than 60% in equity securities, it is termed as equity-oriented mutual funds. If the funds are invested more than 60% in debt instruments, it is termed as debt-oriented mutual funds.

Difference Between Sukanya Samriddhi Account and Children’s Mutual Fund

Particulars	Sukanya Samriddhi Account	Children’s Mutual Fund
Eligibility	Only a girl child	Both girl child and boy child
Age Limit	10 years of age or younger	18 years of age or younger
Limit on accounts	Maximum 2 accounts per family	No such limit
Returns	Interest earned reviewed quarterly by Government	Interest earned linked with the market
Tax Benefit	No Tax	No tax implication until the redemption of the fund. On redemption benefit of indexation is available.
Risk	No Risk (Backed by Government)	High Risk (Market Fluctuation)

Conclusion

Both schemes have their own features and benefits along with limitations. While SSY under the Beti Bachao Beti Padhao scheme is risk-free and offers tax benefits, an equity mutual fund offers higher returns. Not to mention, both schemes will offer a good option for investment in the long term. An investor can divide their funds and invest in both the schemes to avail the maximum benefit and manage the limitations of risk.

Frequently Asked Questions

Which bank is best for Sukanya samriddhi Yojana?

There are many banks that are authorized to offer Sukanya Samriddhi Yojana. Also, one can open an SSY account at a post office. However, one has to physically visit an authorized bank or post office to open an SSY account. There is no online facility for SSY account opening by any bank or post office as of now. But once the account is opened after the submission of all documents, one can set a standing instruction online.
It is important to note that, if a deposit is not made every year, the account will fall under “Account under the default”. Hence, one can visit the nearest authorized bank or post office for opening a Sukanya Samridhi Yojana account based on their convenience.

Can parents withdraw money from Sukanya samriddhi account?

The parent/guardian can withdraw their money from the Sukanya Samriddhi account as and when they need it. However, the girl child has to be 18 years of age before the parent/guardian withdraws money from her account. Furthermore, the parents can withdraw only 50% of the total corpus for fulfilling the purpose of higher education or marriage of the child. Also, proof of admission if required if the amount is withdrawn for higher education purposes.

Who can open Sukanya Samriddhi Scheme?

Sukanya Samriddhi Scheme can be opened by a guardian in the name of the girl child. The girl child must be of age less than 10 years. SSY can be opened for a maximum of 2 girl children in a family. However, in the case of twins or triplets girls’ birth, the guardian is allowed to open more than two SSY accounts.

What is the maximum age limit for the Sukanya Samriddhi Yojana?

The maximum age limit for the SSY scheme is 10 years or less for the girl child.

Can non-residents open Sukanya Samriddhi Yojana?

No, a non-resident cannot open an SSY account. However, after returning back to India they can open an SSY account.

Can I withdraw Sukanya Samriddhi Yojana before maturity?

Yes, you can make a premature withdrawal before maturity from your SSY account. However, you can make a premature withdrawal after the completion of 5 years from the date of account opening. Moreover, additional conditions must be met before making a withdrawal. Premature withdrawal is allowed on the death of an account holder or on extreme compassionate grounds. A premature withdrawal is also allowed on the life-threatening disease of the account holder, on the death of the guardian who operated the account.

Can I shift Sukanya samriddhi account from one bank to another?

Yes, you can shift your Sukanya samriddhi account from one bank to another. You must ensure that the passbook is updated. You need to submit a transfer application to the bank with which you currently hold your Sukanya Samriddhi account.

How can I transfer my Sukanya samriddhi account to another city?

You must ensure that the passbook is updated. You need to submit a transfer application to the bank with which you currently hold your Sukanya Samriddhi account.

What is the minimum amount required to open an SSY Account?

The minimum amount required to open an SSY Account is Rs 250 every financial year.

What is the maximum deposit amount in an SSY Account?

The minimum amount required to open an SSY Account is Rs 1.5 lakhs every financial year.

What is the maturity period of an SSY Account?

The SSY account is matured after completing 21 years from the date of account opening or at the time of marriage of the girl child who is 18 years of age or more. The account holder must present proof of the girl child’s age by submitting a birth certificate.

What are the tax benefits of an SSY account?

The account holder is eligible to receive a tax deduction of upto Rs 1.5 lakhs under section 80C of the Income Tax Act, 1961.

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