The Sukanya Samriddhi Yojana (सुकन्या समृद्धि योजना) is a significant initiative by the Narendra Modi-led NDA Government aimed at promoting the concept of “Save for every girl child.” This scheme is a part of the “Beti Bachao Beti Padhao” campaign and functions as a small saving scheme.
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SUKANYA SAMRIDDHI YOJANA LATEST UPDATES
On December 29, 2023, there was an increase in the interest rate for the Sukanya Samriddhi Account Scheme. The interest rate was raised by 20 basis points, reaching 8.20%, up from the previous 8%. This move by the government is intended to encourage small savers to invest more in this scheme, which focuses on the welfare and security of girl children. Following the revision, the interest rate for the Sukanya Samriddhi Scheme is now on par with the rate for the Senior Citizens Savings Scheme.
The Sukanya Samriddhi Yojana is designed to motivate parents to save for their girl child, facilitating contributions for their education and marriage expenses.
As of January 1, 2024, the Sukanya Samriddhi Yojana offers an interest rate of 8.20% per annum. This interest is calculated annually and compounded yearly. Individuals can refer to the Sukanya Samriddhi Yojana chart and use the calculator to determine the interest earned. Before making an investment, people have the option to compare all Post Office Schemes for the year 2024.
How to Open the Sukanya Samriddhi Account?
Parents or legal guardians have the option to open an account for up to two girl children. In the case of twins or triplets, an exemption can be granted with the submission of a certificate from authorized medical institutions.
The account can be initiated by parents until the girl child reaches the age of 10.
The account is exclusively under the name of the girl child, and only the guardian is allowed to make deposits on behalf of the girl child.
This account can be opened either at Post offices throughout India or at designated bank branches.
Sukanya Samriddhi Yojana Account Online Forms 2024
Below are the links to download online forms for Sukanya Samriddhi Yojana Account:
3. Application for Transfer of SSY Account (FORM 5) – Sukanya Samriddhi Account Transfer Form
4. Application for Premature Closure of SSY Account (FORM 8) – Sukanya Samriddhi Account Premature Closure Form
5. Application for Closure of SSY Account (FORM 9) – Sukanya Samriddhi Yojana Account Closure Form
Changes in SSY Guidelines 2024
1. Higher Interest Rate for Default Accounts:
If a person fails to deposit the minimum amount of Rs. 250 in a financial year in the Sukanya Samriddhi Yojana account, it will be considered a default account. Under the new rules, such default accounts will now earn the interest rate applicable to the scheme until the maturity date if not regularized by then. In the past, these default accounts earned only the post office savings bank interest rate. Default accounts due to the death of a guardian will still be eligible for interest under the scheme’s new rules.
2. Changes in Rules for Premature Closure of Account:
The new scheme rules permit the premature closure of a Sukanya Samriddhi account in the event of the death of the girl child or on compassionate grounds. “Compassionate grounds” now include situations such as the medical treatment of the account holder for life-threatening diseases or the death of the guardian. The previous rules allowed closure only in cases of the death of the girl child or a change in residency status.
3. Operation of SSY Account:
According to the newly notified rules of the Sukanya Samriddhi Yojana Scheme, the girl child cannot operate the account until she reaches the age of 18, as opposed to the previous rules allowing operation from the age of 10. Under the new rules, the guardian will operate the account until the girl child turns 18. Upon reaching 18, the necessary documents must be submitted to the bank or post office where the account is held.
4. Opening of Accounts for More Than Two Girl Children:
There is a change in the additional documentation needed when opening accounts for more than two girl children. As per the newly notified rules, if accounts are to be opened for more than two girl children, an individual needs to submit an affidavit along with the birth certificates. In contrast, the old rules mandated the submission of a medical certificate by the guardian.
5. Other Changes:
In addition to the mentioned changes, the new rules of the Sukanya Samriddhi Yojana have eliminated certain provisions and provided clarifications. The new rules no longer include the provision of reversing wrongly credited interest in the account, as the scheme interest now applies to all default accounts (rather than the Post Office account saving interest rate). Furthermore, under the new rules, interest will be credited to the account at the end of the financial year.
Here is the complete chart for calculating interest rate of Sukanya Samriddhi Yojana:-
Calculator Sukanya Samriddhi Yojana Account
Salient Features of Sukanya Samriddhi Yojana Account
The Sukanya Samriddhi Account offers an attractive interest rate of 8.20% (from October 1, 2024, to December 31, 2024), regulated by the Ministry of Finance on a quarterly basis.
Key features of the account:
1. The account can be opened in the name of a girl child until she reaches the age of 10.
2. Only one account can be opened for a girl child.
3. You can open an account in Post Offices or designated branches of commercial banks like HDFC Bank, ICICI Bank, PNB Bank, SBI Bank, or any other bank across the country.
4. The birth certificate of the girl child must be produced and submitted during the account opening.
5. The account can be opened with a minimum deposit of Rs. 250, and subsequent deposits can be made in multiples of Rs. 50.
6. Deposits can be made until the completion of 14 years from the account opening date.
7. A minimum deposit of Rs. 250 is required in a financial year.
8. Interest, as notified by the government, is calculated on a yearly compounded basis and credited to the account.
9. The maximum deposit allowed in one financial year is Rs. 1,50,000.
10. One withdrawal is allowed when the account holder turns 18, for meeting education/marriage expenses, at 50% of the balance from the preceding financial year.
11. The account can be transferred anywhere in India to any post office/bank.
12. The account matures on completion of 21 years from the date of opening.
More information about Sukanya Samriddhi Yojana Account
Additional information about Sukanya Samriddhi Yojana:
1. Penalty for Non-Credit of Minimum Amount:
A penalty of Rs. 50 will be imposed if the account is not credited with the minimum required amount.
2. Guardians’ Deposit Period:
Guardians are required to deposit amounts for 14 years. No additional deposits are necessary after that until maturity.
3. Premature Withdrawal:
Premature withdrawal of 50% of the accumulated amount is allowed at the end of the previous financial year after the girl child turns 18.
4. Account Closure:
The account can be closed after 21 years, and the money can be withdrawn. If not withdrawn, it will continue to earn interest.
5. Tax Exemption:
As per Section 80C of the Income Tax Act, the investment of Rs. 1.5 lakh per year, including the earned interest, is completely exempted from income tax.
6. Triple E Tax Benefit:
Investment in the Sukanya Samriddhi Yojana scheme is exempted from Income Tax under Section 80C. The scheme offers Tax Benefit under the Triple E regimen, meaning Principal, interest, and outflow are all tax-exempted.
Documents Required for Opening an Account?
When opening a Sukanya Samriddhi Yojana account, you will need the following documents:
1. Birth Certificate of the Girl Child:
– This document serves as proof of the girl child’s date of birth.
2. Address and Photo Identity Proof of the Guardian:
– Provide documents such as PAN Card, Voter ID, Aadhar Card, or any other valid address and photo identity proof for the guardian.
Sukanya Samriddhi Yojana is a flagship scheme of the Indian Post Office and the Modi Government, with a primary focus on the welfare of the girl child.
Furthermore, the interest earned through this scheme is more favorable compared to other Post Office Savings Schemes like Public Provident Fund, Kisan Vikas Patra, National Savings Certificate Scheme, etc.
Summary of Sukanya Samriddhi Yojana Account
Here is the summary of the Sukanya Samriddhi Yojana Account as follows:-
Who can open account
Here are the key points related to opening Sukanya Samriddhi Yojana accounts:
1. By the Guardian for Girl Child Below 10 Years:
– The account can be opened by the guardian in the name of a girl child below the age of 10 years.
2. One Account Per Girl Child:
– Only one account can be opened in India, either in a Post Office or in any bank, in the name of a girl child.
3. Maximum of Two Accounts in a Family:
– This account can be opened for a maximum of two girls in a family. However, in the case of twins/triplets, more than two accounts can be opened.
Deposits
Here are the key features related to deposits in Sukanya Samriddhi Yojana:
1. Minimum Initial Deposit:
– The account can be opened with a minimum initial deposit of Rs. 250.
2. Minimum and Maximum Deposits in a Financial Year:
– The minimum deposit in a financial year is Rs. 250, and the maximum deposit can go up to Rs. 1.50 lakh, in multiples of Rs. 50, either in a lump sum or in multiple installments.
3. Deposit Duration:
– Deposits can be made up to the completion of 15 years from the date of opening the account.
4. Defaulted Account:
– If the minimum deposit of Rs. 250 is not made in an account in a financial year, the account will be treated as a defaulted account.
5. Revival of Defaulted Account:
– A defaulted account can be revived before completion of 15 years from the date of opening by paying a minimum of Rs. 250 plus Rs. 50 as a default fee for each defaulted year.
6. Income Tax Deduction:
– Deposits made in Sukanya Samriddhi Yojana qualify for deduction under Section 80C of the Income Tax Act.
Interest
Here are the key points related to the interest earned in Sukanya Samriddhi Yojana:
1. Prescribed Interest Rate:
– The account will earn interest at the prescribed rate, as notified by the Ministry of Finance on a quarterly basis.
2. Interest Calculation:
– Interest shall be calculated for the calendar month on the lowest balance in the account between the close of the fifth day and the end of the month.
3. Crediting of Interest:
– Interest shall be credited to the account at the end of each financial year, where the account stands at the end of the financial year. This includes cases of transfer of the account from a bank to a post office or vice versa.
4. Tax-Free Interest:
– The interest earned is tax-free under the Income Tax Act.
Operation of Account
-> Account will be operated by the guardian till the girl child attains the age of majority (i.e. 18 years).
Withdrawal
Here are the key points regarding withdrawals from Sukanya Samriddhi Yojana:
1. Withdrawal Eligibility:
– Withdrawals may be taken from the account after the girl child attains the age of 18 or has passed the 10th standard.
2. Withdrawal Limit:
– Withdrawals can be made up to 50% of the balance available at the end of the preceding financial year.
3. Withdrawal Options:
– Withdrawals may be made in one lump sum or in installments, not exceeding one per year, for a maximum of five years. This is subject to the specified ceiling and the actual requirement of fees/other charges.
Premature closure
Here are the conditions for the premature closure of a Sukanya Samriddhi Yojana account after 5 years of its opening:
1. Conditions for Premature Closure:
– The account may be prematurely closed after 5 years of opening under the following conditions:
2. On the Death of Account Holder:
– In the event of the death of the account holder, the account can be closed. From the date of death to the date of payment, the Post Office Savings Account interest rate will be applicable.
3. On Extreme Compassionate Grounds:
– Premature closure is allowed on extreme compassionate grounds, which include:
– Life-threatening disease of the account holder.
– Death of the guardian by whom the account is operated.
4. Complete Documentation and Application:
– Complete documentation and an application are required for such closures.
5. Procedure for Premature Closure:
– To initiate the premature closure of the account, submit the prescribed application form along with the passbook at the concerned Post Office.
Closure on maturity
Here are the conditions for the maturity and closure of a Sukanya Samriddhi Yojana account:
1. Maturity After 21 Years:
– The account shall mature on the completion of 21 years from the date of opening.
2. Closure at the Time of Marriage:
– Alternatively, the account can be closed at the time of the marriage of the girl child after attaining the age of 18 years. The closure can be done either one month before or three months after the date of marriage.
Sukanya Samriddhi Yojana Account Rules – Click Here
