Sukanya Samriddhi Yojana (SSY) - 2024
The Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme launched to secure the financial future of the girl child in India. It was introduced under the Beti Bachao Beti Padhao (BBBP) campaign and aims to encourage parents to save for their daughters' education and marriage.
Interest Rate and Compounding
For the financial year 2024-2025, the SSY offers a highly attractive interest rate of 8.2% per annum, compounded annually. This makes it one of the highest-earning small savings schemes available, designed to support the financial planning for girl children.
What is Sukanya Samriddhi Yojana (SSY)?
The Sukanya Samriddhi Yojana is an integral part of the Beti Bachao Beti Padhao initiative. Launched in 2015, it is a collaborative effort by several ministries, including the Ministry of Women and Child Development, Ministry of Human Resource Development, and Ministry of Health and Family Welfare. SSY accounts can be opened at post offices, public sector banks, and some private banks, such as HDFC Bank, ICICI Bank, and Axis Bank. The account matures after 21 years or when the girl marries after turning 18.
Objectives of Sukanya Samriddhi Yojana
- Protection and Survival: Ensuring the safety and survival of girl children.
- Education and Empowerment: Promoting education and empowerment of girls.
- Reduction in Gender Discrimination: Curbing practices like gender-based discrimination and sex determination.
Key Details of Sukanya Samriddhi Yojana
- Interest Rate: 8.2% per annum, compounded annually.
- Minimum Investment: Rs.250 per year.
- Maximum Investment: Rs.1.5 lakh per annum.
- Maturity Period: 21 years (or until the girl marries after turning 18).
- Penalty for Inactivity: Rs.50 if the minimum deposit is not made annually.
Banks Offering SSY Accounts
Several banks and post offices offer SSY accounts, including:
- State Bank of India (SBI)
- HDFC Bank
- ICICI Bank
- Axis Bank
- Punjab National Bank (PNB)
- Bank of Baroda
- Canara Bank
- Union Bank of India
- India Post/Post Office
Sukanya Samriddhi Yojana Interest Rate History
| Duration | Interest Rate (%) |
|---|---|
| January - March 2024 (Q4 FY 2023-24) | 8.20% |
| October - December 2023 (Q3 FY 2023-24) | 8.00% |
| July - September 2023 (Q2 FY 2023-24) | 8.00% |
| April - June 2023 (Q1 FY 2023-24) | 8.00% |
| January - March 2023 (Q4 FY 2022-23) | 7.60% |
| October - December 2022 (Q3 FY 2022-23) | 7.60% |
Conditions for Non-Payment of Interest
- Inactive Accounts: If the minimum annual deposit of Rs.250 is not made, the account becomes inactive, and a penalty of Rs.50 is charged. No interest will be earned unless the penalty is paid.
- Premature Closure: After five years, premature closure is allowed only for medical emergencies or life-threatening situations. In such cases, interest will be paid at the regular savings account rate, which is lower than SSY’s rate.
Features of Sukanya Samriddhi Yojana
| Feature | Details |
|---|---|
| Account Operation | Operated by guardian/parents until the girl turns 10; girl operates it after 18. |
| Deposit Amount | Minimum: Rs.500, Maximum: Rs.1.5 lakh annually. |
| Duration of Deposit | Deposits are required for 15 years, and the account matures after 21 years. |
| Account Transfer | Transferable across banks and post offices in India at no cost with proof of residence change. |
| Mode of Deposit | Deposits can be made via cash, cheque, demand draft, or online transfer. |
Eligibility for Sukanya Samriddhi Yojana
- Who Can Open: Parents or legal guardians can open an SSY account for a girl child until she turns 10.
- Residency Requirement: The girl child must be a resident Indian.
- Number of Accounts: A maximum of two accounts per family, except in the case of twin girls.
Documents Required to Open an SSY Account
- Account-Opening Form: Complete the SSY account-opening form.
- Birth Certificate of the Girl Child: Required for account opening.
- Depositor's ID and Address Proof: Valid proof of identity and address.
- Medical Certificate: Needed in cases where multiple children are born in one order.
- Additional Documents: Other documents requested by the bank or post office.
Frequently Asked Questions (FAQs)
Can the SSY account be opened after the girl child turns 10?
- No, the account must be opened before the girl turns 10 years old.
Is the interest earned on SSY taxable?
- No, the interest earned under SSY is tax-free under Section 80C of the Income Tax Act.
Can I prematurely close the SSY account?
- Yes, premature closure is allowed only after five years in cases of medical emergencies or life-threatening situations.
What happens if I fail to make the minimum deposit?
- The account will become inactive, and a penalty of Rs.50 will be imposed. Interest will only accrue after paying the penalty and reviving the account.
Can I transfer my SSY account from a post office to a bank?
- Yes, you can transfer your SSY account between post offices and banks, provided you produce proof of residence change.
What is the maturity period of the SSY account?
- The account matures after 21 years, or when the girl child marries after turning 18.
How much can I deposit annually in the SSY account?
- The minimum deposit is Rs.500, and the maximum is Rs.1.5 lakh per annum.
Can the SSY account be opened after the girl child turns 10?
- No, the account must be opened before the girl turns 10 years old.
Is the interest earned on SSY taxable?
- No, the interest earned under SSY is tax-free under Section 80C of the Income Tax Act.
Can I prematurely close the SSY account?
- Yes, premature closure is allowed only after five years in cases of medical emergencies or life-threatening situations.
What happens if I fail to make the minimum deposit?
- The account will become inactive, and a penalty of Rs.50 will be imposed. Interest will only accrue after paying the penalty and reviving the account.
Can I transfer my SSY account from a post office to a bank?
- Yes, you can transfer your SSY account between post offices and banks, provided you produce proof of residence change.
What is the maturity period of the SSY account?
- The account matures after 21 years, or when the girl child marries after turning 18.
How much can I deposit annually in the SSY account?
- The minimum deposit is Rs.500, and the maximum is Rs.1.5 lakh per annum.
The Sukanya Samriddhi Yojana is a powerful tool for securing the financial future of girl children in India. With an attractive interest rate and multiple benefits, it encourages parents to save for their daughters' education and marriage while enjoying tax benefits.
