Sukanya Samriddhi Yojana (SSY) is a small deposit savings scheme launched in January 2015 as part of the 'Beti Bachao, Beti Padhao' campaign by the Government of India. It enables parents or legal guardians to create a fund for their girl child's future education and marriage expenses. The scheme offers one of the highest interest rates among government-backed savings options and comes with significant tax benefits under Section 80C of the Income Tax Act.

A Sukanya Samriddhi Account can be opened by a parent or legal guardian for a girl child who is below 10 years of age. The account must be opened in the name of the girl child. A maximum of two accounts can be opened in a family (one for each girl child). In case of twins or triplets born together, more than two accounts are permitted with proper documentation proving the birth of multiple girl children. The account can be opened at authorized banks (like SBI, PNB, BOB) or post offices across India.

To open a Sukanya Samriddhi Yojana account, you need: 1) Birth certificate of the girl child, 2) Identity proof of the parent/guardian (Aadhaar card, PAN card, voter ID, etc.), 3) Address proof of parent/guardian, 4) Recent passport-sized photographs of both the child and the guardian, 5) Completed application form available at banks/post offices. For NRIs, additional documents may be required. If opening a second account for another girl child, proof showing the relationship between the children is also needed.

The minimum annual deposit in a Sukanya Samriddhi account is ₹250, and the maximum is ₹1.5 lakh per account per financial year. Deposits can be made in lump sum or in installments (monthly, quarterly, etc.). There's no limit on the number of deposits within a financial year as long as the total doesn't exceed ₹1.5 lakh. The deposit amount should be in multiples of ₹50. You can make deposits for 15 years from the date of account opening, after which no further deposits are allowed though the account continues to earn interest.

If you deposit more than the maximum limit of ₹1.5 lakh in a financial year, the excess amount will not earn any interest and will not be eligible for tax benefits under Section 80C. The excess amount remains in the account but does not contribute to the maturity calculation. You will be notified about the excess deposit, but it will not be automatically refunded. You need to submit a written request to withdraw the excess amount, which will be processed by the bank or post office where the account is maintained.

The interest rate for Sukanya Samriddhi Yojana is reviewed and announced by the Ministry of Finance quarterly. For the first quarter of FY 2024-25 (April-June 2024), the interest rate is 8.2% per annum (compounded annually). This is among the highest interest rates offered by any government-backed small savings scheme in India. The interest is calculated on a yearly basis on the balance in the account. The interest earned is completely tax-free under Section 80C of the Income Tax Act, making it one of the most tax-efficient investment options available.

Interest in SSY accounts is calculated on a yearly basis and compounded annually. The interest is calculated on the lowest balance between the close of the 5th day and the end of the month. For example, if you deposit ₹50,000 on the 10th of a month, interest for that month will be calculated on the balance as of the 5th day (which would not include this deposit). This is why it's beneficial to make deposits early in the month. The interest earned is tax-free and is credited to the account at the end of each financial year.

An SSY account matures exactly 21 years from the date of opening. For example, if an account was opened when the girl was 5 years old, it would mature when she turns 26. Deposits can only be made for the first 15 years from the date of opening, but the account continues to earn interest at the prevailing rate for the entire 21-year period. This structure allows the corpus to grow substantially even after deposits stop. The complete amount (including principal and accumulated interest) can be withdrawn only at maturity unless specific partial withdrawal conditions are met.

Yes, the Sukanya Samriddhi account has a lock-in period. The account matures after 21 years from the date of opening. However, there are provisions for partial withdrawals after the girl child turns 18 years old, specifically for higher education or marriage expenses. These partial withdrawals are limited to 50% of the balance at the end of the preceding financial year. Full premature closure is permitted only if the girl child is at least 18 years old and getting married. The lock-in structure ensures long-term wealth creation for the girl child's future.

Yes, partial withdrawals from SSY accounts are allowed under specific conditions: 1) Withdrawals up to 50% of the balance (as of the previous financial year) are permitted after the girl child turns 18, specifically for higher education or marriage expenses. 2) Documentary proof of education/marriage is required for such withdrawals. 3) Full premature closure is allowed only if the girl child is at least 18 and getting married, or in unfortunate circumstances like the death of the account holder. 4) In case of serious medical emergencies, special withdrawal permissions may be granted on a case-by-case basis with proper documentation.

SSY offers triple tax benefits under the EEE (Exempt-Exempt-Exempt) category: 1) The annual deposit (up to ₹1.5 lakh) is eligible for tax deduction under Section 80C of the Income Tax Act. 2) The interest earned on the account is completely tax-free. 3) The maturity amount (both principal and accumulated interest) is fully exempt from income tax. This makes SSY one of the most tax-efficient investment options available in India. Even after the introduction of the new tax regime, these benefits continue to apply for those who opt for the old tax regime.

Compared to other investments: 1) Interest Rate: SSY currently offers 8.2%, higher than PPF (7.1%) and most bank FDs (5-7%). 2) Lock-in: SSY has a 21-year maturity compared to PPF's 15 years and FDs' 1-10 years. 3) Tax Benefits: SSY falls under EEE category (completely tax-free), while FDs are fully taxable and PPF also offers EEE benefits. 4) Purpose: SSY is specifically designed for girl children's future, while others are general investment options. 5) Investment Limit: SSY allows maximum ₹1.5 lakh annually, same as PPF, but FDs have no upper limit. 6) Risk: All three are equally safe as government-backed/bank investments. SSY is particularly advantageous for long-term planning for girl children.

If you miss making the minimum annual deposit (₹250) in any financial year, your SSY account becomes 'irregular' or inactive. To reactivate it, you need to pay a penalty of ₹50 per year of default, along with the minimum deposit amount for each defaulted year. For example, if you miss deposits for two years, you'll need to pay ₹250 × 2 + ₹50 × 2 = ₹600 to regularize the account. An inactive account continues to earn interest but you cannot make normal deposits until it's regularized. The account can remain inactive for up to 15 years, after which it stops earning interest until regularized.

Yes, an SSY account can be transferred from one bank/post office to another, especially useful if you relocate. The process involves: 1) Submit a transfer application at your current bank/post office with the address of the destination branch. 2) Receive a transfer certificate containing account details and balance. 3) Submit this certificate to the new bank/post office within 30 days to complete the transfer. 4) No fee is charged for transfers between different branches of the same bank/post office. 5) For transfers between different banks or from bank to post office (or vice versa), a service fee may apply. The account number changes after transfer, but all other benefits and history remain intact.

In the unfortunate event of the death of the girl child (account holder), the SSY account will be closed immediately. The balance in the account, including all deposits and accumulated interest, will be paid to the parent or legal guardian who was operating the account. No interest will be payable from the date of death of the child. The parent/guardian needs to submit a death certificate and claim form to the bank or post office where the account is maintained. This is one of the few situations where premature withdrawal of the entire amount is permitted without any penalty.

No, Non-Resident Indians (NRIs) cannot open a new Sukanya Samriddhi account. The scheme is only available to resident Indians. However, if an existing account holder becomes an NRI after opening the account, the account can continue but no fresh deposits will be accepted during the period of non-residency. Once the account holder returns to India and regains resident status, deposits can resume. The account continues to earn interest during the non-resident period on the existing balance. Documentation proving the change to resident status must be submitted to resume deposits.

Yes, many banks now offer the facility to open Sukanya Samriddhi accounts online through their net banking or mobile banking platforms. The online process typically involves: 1) Login to your bank's net banking. 2) Navigate to the 'Open New Account' or similar section. 3) Select SSY account type. 4) Fill in the required details of the girl child and guardian. 5) Upload scanned copies of required documents (birth certificate, ID proof, etc.). 6) Set up initial deposit payment. You will still need to visit the branch later with original documents for verification. Post offices generally require in-person visits to open an SSY account.

When an SSY account completes 21 years from the date of opening (reaches maturity): 1) The account holder (now an adult) can withdraw the entire amount (principal + accumulated interest). 2) A maturity application must be submitted to the bank/post office. 3) If no withdrawal claim is made, the account continues to earn interest at the prevailing SSY rate until a withdrawal request is made. 4) For withdrawal, the account holder needs to submit ID proof, address proof, and the original account opening documents. 5) The maturity amount can be transferred directly to the account holder's bank account. 6) The entire maturity amount remains tax-free irrespective of when it is withdrawn after maturity.