Sukanya Samriddhi Yojana (SSY), Interest Rate 2023 and Other Details

As part of the Beti Bachao Beti Padhao initiative, Prime Minister Narendra Modi introduced the ‘Sukanya Samriddhi Yojana (SSY),’ also known as the ‘Girl Child Prosperity Scheme.’ Launched on January 22, 2015, in Panipat, Haryana, this scheme aims to promote the well-being and education of girl children.

Here are some key details about Sukanya Samriddhi Yojana:

• Investment Range: You can invest a minimum of Rs. 250 and a maximum of Rs. 1.5 lakh per year.
• Interest Rate: The current annual interest rate is 8%.
• Maturity Value: The final amount received at maturity depends on the invested sum.
• Maturity Duration: The scheme matures after 21 years from the date of the initial investment.

This initiative encourages financial planning for the future of girl children and provides an opportunity for families to invest in their prosperity.

Sukanya Samriddhi Yojana

To tackle the declining child sex ratio in our country, the Indian government initiated the Beti Bachao Beti Padhao (BBBP) campaign on January 22, 2015. This nationwide effort, led by the Ministries of Women and Child Development, Health and Family Welfare, and Human Resource Development, promotes the message ‘Save girls, educate the girl child.’

BBBP has three main goals:

1. Eliminate gender discrimination against children and discourage sex determination practices.
2. Ensure the survival and protection of girls.
3. Promote increased participation of girls in education and various fields.

Another significant initiative, the Sukanya Samriddhi Yojana (SSY), addresses a crucial issue concerning the girl child—education and marriage. It focuses on securing a bright future for girls in India by assisting parents in building a fund for their child’s education and marriage expenses. The Sukanya Samriddhi Account has been introduced for this specific purpose.

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Sukanya Samriddhi Yojana Interest Rate

Interest rates for Sukanya Samriddhi Yojana are updated every quarter. Let’s take a look at the historical trend:

1. Oct-Dec 2023 (Q3 FY 2023-24): The interest rate is 8%.
2. July-Sept 2023 (Q2 FY 2023-24): The interest rate remains at 8%.
3. April-June 2023 (Q1 FY 2023-24): The interest rate increased to 8%.
4. Jan-Mar 2023 (Q4 FY 2022-23): The interest rate was 7.6%.
5. April-June 2022 (Q1 FY 2022-23): The interest rate was 7.6%.

If you haven’t deposited at least Rs 250 into your account, known as the ‘Account under default,’ the entire amount will start earning interest in your post savings bank account. However, this interest won’t apply if the default is due to the death of the account’s guardian. Remember to regularize the minimum deposit within the specified time to avoid any issues.

Sukanya Samriddhi Yojana Age Limit and Maturity Period

Open a Sukanya Samriddhi Yojana (SSY) Account

A unique feature of the Sukanya Samriddhi Yojana (SSY) is that only one account is allowed for a girl child. You can initiate the process by opening an SSY account at any post office or an authorized commercial bank branch. This account can be established anytime between the birth of the girl child and her 10th birthday.

Who Benefits from SSY?

Any girl child who is a resident Indian becomes a beneficiary upon the opening of the SSY account, and this status continues until maturity or closure.

Deposits in SSY

The guardian has the responsibility to deposit and manage the account until the girl child turns 18. Post that, the account must be operated by the girl herself.

The minimum deposit for an SSY account is now Rs. 250 (previously Rs. 1,000), and subsequent deposits can be made in multiples of Rs. 50, up to a maximum of Rs. 1,50,000 per financial year for 15 years. Deposits can be made through cash, cheque, demand draft, or online transfer.

Interest Details

For the 2nd quarter of FY 2023-2024 (July 1, 2023, to September 30, 2023), the interest rate is set at 8% per annum. If the account is in default (minimum Rs. 250 per year not deposited), it can be regularized within 15 years from the account opening with a penalty of Rs. 50 per default year.

No interest is payable after the 21-year tenure from account opening. Additionally, no interest accrues if the girl child becomes a non-citizen or non-resident of India. Deposits exceeding the maximum cap of Rs. 1,50,000 per year do not earn interest and can be withdrawn at any time by the depositor.

SSY Maturity Period

The SSY has a maturity period of 21 years from the account opening or upon the girl’s marriage after reaching 18 years. However, contributions need to be made only for the initial 15 years. After that, the SSY account will continue to accumulate interest until maturity, even if no further deposits are made.

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Sukanya Samriddhi Yojana Benefits

1. Affordable Start: Begin your Sukanya Samriddhi Yojana with a minimal annual deposit of Rs.250. You have the flexibility to contribute up to Rs.1.5 lakh per fiscal year, making it budget-friendly for everyone. In case you miss a year, a nominal penalty of Rs.50 applies on the minimum payment of Rs.250, ensuring continuity.
2. Lucrative Interest Rates: Currently, the scheme offers an attractive 8% per annum compounded interest rate (as of Q3 FY 2023-24), ranking it among the top options for small savings.
3. Tax Savings: Avail full tax deduction on invested principal, enjoying benefits under Section 80C of the Income Tax Act for contributions up to ₹1.5 lakh annually. Not only is the principal exempt, but both the interest and maturity amounts are tax-free.
4. Extended Security: Safeguard your daughter’s future with a generous 21-year maturity period or until her marriage post turning 18, whichever comes first.
5. Education Coverage: Withdraw 50% of the previous financial year’s end balance to cover educational expenses for your girl child. Simply provide proof of admission to access this benefit.
6. Reliable Returns: As a government-backed initiative, Sukanya Samriddhi Yojana assures guaranteed returns upon maturity, providing financial security.
7. Easy Transfers: Seamlessly transfer your SSY account between post offices and banks anywhere in India, ensuring convenience and accessibility.

Sukanya Samriddhi Yojana Tax Benefits

To promote investments in the Sukanya Samriddhi Yojana (SSY), the government offers attractive tax benefits:

1. You can enjoy deductions under Section 80C for the money you invest in the SSY scheme, with a maximum limit of Rs 1.5 lakh.
2. The interest earned on your SSY account, which compounds annually, is tax-free under Section 10 of the Income Tax Act.
3. When you withdraw or your account matures, the proceeds are exempt from income tax.

Sukanya Samriddhi Yojana Calculation

The interest on your Sukanya Samriddhi Yojana (SSY) account is determined based on the lowest balance in a given month, specifically between the fifth day and the month’s end. This interest is credited annually, at the end of each financial year.

To calculate the interest on your SSY account, you can utilize the formula:

A = P(1+r/n)^nt

Here’s a breakdown of the variables:

P = Initial Deposit
r = Rate of interest
n = Number of years the interest compounds
t = Number of years
A = Amount at maturity

Since the interest compounds annually, manual calculations may be complex. Our Sukanya Samriddhi Yojana Calculator simplifies this process. Just input details like the yearly investment amount, the girl child’s age, and the account start year to get the maturity amount. This tool makes managing your SSY account hassle-free.

Sukanya Samriddhi Yojana Eligibility

To open a Sukanya Samriddhi Yojana (SSY) account, only parents or legal guardians of a girl child are eligible. The girl child must be a resident Indian and below the age of 10 when the account is opened. Families are allowed to open only one SSY account for each girl child, with a maximum limit of two accounts per family (one for each girl child).

However, there are special cases where more than two accounts can be opened. For instance, if a girl child is born before the birth of twin or triplet girls, or if triplets are born initially, then a third account can be opened. On the other hand, if a girl child is born after the birth of twin or triplet girls, a third SSY account cannot be opened.

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Sukanya Samriddhi Yojana Application Form

To apply for the Sukanya Samriddhi Yojana, follow these simple steps:

Step 1: Address the application to the Postmaster/Manager, providing details of the Post Office/bank branch and postal address.

Step 2: Affix the applicant’s photograph on the right side.

Step 3: Under ‘I/We,’ specify the applicant’s name, followed by Sukanya Samriddhi Yojana in the space provided.

Step 4: Input the deposit amount in both numerical and written form, and indicate the mode of payment—cash, cheque, or DD. For cheques or DDs, record the number and date.

Step 5: Include the name and date of birth of the depositor (i.e., the girl child).

Step 6: Provide the guardian’s name, date of birth, Aadhaar number, and PAN number.

Step 7: Input the address and contact details.

Step 8: Specify the type of account and provide details from the depositor’s birth certificate.

Step 9: Include information about the attached KYC documents.

Step 10: Sign the form along with your name.

Step 11: Enter nomination details.

Step 12: If the applicant is illiterate, obtain the signatures of two witnesses.

Step 13: Conclude the nomination section with the date, place, and signature.

Sukanya Samriddhi Yojana Online Payment

To conveniently manage your Sukanya Samriddhi Yojana (SSY) payments online, simply follow these easy steps using the IPPB app:

1. Start by transferring funds from your bank account to your IPPB account.
2. Open the IPPB app and navigate to DOP Products, then select Sukanya Samriddhi Yojana.
3. Input your SSY account number and DOP customer ID.
4. Choose the payment amount and the duration of installments.
5. Receive a notification from IPPB confirming the successful setup of your payment schedule.
6. Stay informed with notifications each time the app transfers money for your SSY account.

Download the IPPB app now for seamless online payments towards your SSY account.

Sukanya Samriddhi Yojana Documents Required

To complete the process for your Sukanya Samriddhi Yojana (SSY) application, visit the post office or bank branch where you applied. Bring along physical copies of the necessary documents:

1. Birth certificate of the girl child
2. Guardian’s identity and address proof
3. Medical certificate confirming the birth of multiple girl children in a single order
4. Additional KYC documents like Aadhaar card, Voters ID, etc.
5. Any other documents specified by the post office or bank.

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Sukanya Samriddhi Yojana FAQs

Q.1. What is the investment range for Sukanya Samriddhi Yojana?
Ans. The minimum annual investment is Rs. 250, with a maximum cap of Rs. 1.5 lakh.

Q.2. What is the interest rate for SSY?
Ans. As of Q3 FY 2023-24, the annual interest rate is 8%.

Q.3. When does the SSY mature?
Ans. The scheme matures after 21 years from the date of the initial investment.

Q.4. How to open an SSY account?
Ans. Open an account at any post office or authorized bank branch between the birth and 10th birthday of the girl child.

Q.5. What are the tax benefits of Sukanya Samriddhi Yojana?
Ans. Enjoy full tax deduction under Section 80C, tax-free interest, and exempted proceeds on withdrawal or maturity.