The Sukanya Samriddhi Yojana was introduced under the campaign ‘Beti Bachao Beti Padhao’ with the objective to secure the financial future of the girl child. The current rate of interest offered by Sukanya Samriddhi Yojana is 7.6% compounded annually. Sukanya Samriddhi Yojana is a long-term savings scheme that can be opened in any designated private or public bank and post-offices. Let’s read further to know in detail about Sukanya Samriddhi Yojana.
What is Sukanya Samriddhi Yojana?
SSY is a long-term savings scheme that allows the parents or guardians of the girl child to invest systematically in the scheme to secure the financial future of the girl child. The scheme is specifically designed to ensure the financial security of the girl child in the long term. Parents who have a girl child below the age of 10 years are eligible to invest in SSY. The scheme provides financial protection to the child until she attains the age of 18 years.
Sukanya Samriddhi Yojana Interest Rate 2022-23
The investment made towards SSY can be used to financially secure the future of the girl child. The SSY interest rate is determined every quarter and is considered one of the highest among various investment options. The current Sukanya Samriddhi Yojana interest rate for FY 2022-2023 is 7.6% compounded annually. Let’s take a look at the interest rates of SSY year-wise.
|Oct-Dec 2021 (FY 2021-22)||7.6%|
|July-Sep 2021 (FY 2021-22)||7.6%|
|April-June 2021 (FY 2021-22)||7.6%|
|January-March 2021 (FY 2021-22)||7.6%|
|Oct-Dec 2020 (FY 2020-21)||7.6%|
|July-Sep 2020 (FY 2020-21)||7.6%|
|April-June 2020 (FY 2020-21)||7.6%|
|January-March 2020 (FY 2020-21)||8.4%|
|Oct-Dec 2019 (FY 2019-20)||8.4%|
|July-Sep 2019 (FY 2019-20)||8.4%|
|April-June 2019 (FY 2019-20)||8.5%|
|Jan-March 2019 (FY 2019-20)||8.5%|
|Oct to Dec 2018 (FY 2018-19)||8.5%|
|Jul-Sep 2018 (FY 2018-19)||8.1%|
|Apr-Jun 2018 (FY 2018-19)||8.1%|
|Jan-March 2018 (FY 2018-19)||8.1%|
The best part about the Sukanya Samriddhi Account interest rate is that it offers a higher rate of interest in comparison to all other saving schemes. Therefore, with this government savings scheme, one can certainly ensure their girl child’s future and meet her financial requirements in the future.
How Sukanya Samriddhi Interest Rates on Deposits Calculated?
Sukanya Samriddhi Yojana is a government-backed savings scheme in India that is specifically designed for the benefit of girl children. The interest rate on deposits made under this scheme is determined by the government and may change from time to time. Currently, the interest rate on Sukanya Samriddhi deposits is 7.6% per annum.
This interest rate is calculated on a quarterly basis and is paid out on the deposits made during the quarter. The interest earned on Sukanya Samriddhi deposits is tax-free, which makes it an attractive savings option for many parents. It is important to note that the interest rate on Sukanya Samriddhi deposits is subject to change, and you should check the current rate before making a deposit.
Read More: Sukanya Samriddhi Yojana Calculator
Sukanya Samriddhi Yojana Scheme Premature Withdrawals Rules
Sukanya Samriddhi Yojana is a savings scheme launched by the Government of India for the benefit of the girl child. The scheme allows premature withdrawals under certain circumstances, such as for the higher education of the girl child or in case of financial hardship.
- Premature withdrawals allowed for certain circumstances (e.g. education, medical treatment for girl for whom account was opened)
- Rules for premature withdrawals may vary, check with bank for more information
- Account must have been open for at least 5 years before premature withdrawals allowed
- Premature withdrawals may be subject to restrictions or penalties
- Girl for whom account was opened must request withdrawal and provide proof of need
- Maximum withdrawal is 50% of account balance and must be used for approved purpose
- Account holder may be required to provide additional documentation for premature withdrawal request
Eligibility Criteria to Open Sukanya Samriddhi Yojana Account
The following are the eligibility criteria to open an SSY account:
- The account can be opened by a parent or legal guardian of the girl child
- The girl child must be below the age of 10 years
- Only one account is allowed for a girl child
- A family can open 2 SSY accounts in case of a twin girl child
Features of Sukanya Samriddhi Yojana
Let’s take a look at some of the salient features of the Sukanya Samriddhi Yojana:
- The parent or guardian of the girl child can operate the account until the girl reaches 18 years of age
- The girl must operate the account once she reaches 18 years of age
- An individual can start investing in the Sukanya Samriddhi Yojana account with a minimum amount of Rs. 250 and can invest up to a maximum of Rs. 1.5 lakh in a financial year. The contribution can be made in multiples of 100
- The maturity tenure of the SSY account is until the girl reaches the age of 21 years or once the girl gets married after 18 years of age
- The SSY offers tax benefits in EEE format i.e (exempt, exempt, exempt). The contribution made toward the scheme up to the maximum limit of Rs.1.5 lakh under Section 80C of the IT Act. Moreover, the interest earned on the contributed amount and the maturity amount is also tax exempted.
- The SSY account can be opened in the name of a single girl child. Only two accounts are allowed per family i.e. for each girl child.
Benefits of Sukanya Samriddhi Yojana
Along with providing financial security to the girl child, there are various other benefits offered by Sukanya Samriddhi Yojana. Let’s take a look at these benefits in detail:
Simple Process of Account Opening
An individual can open an SSY account in a simple and hassle-free way with a minimum deposit of Rs. 250 and can invest up to a maximum of Rs. 1.5 lakh in a financial year. With a contribution amount so low, the account can be opened by any individual falling in any income bracket.
Apart from securing the financial future of the girl child, the major benefit offered by the SSY account is that one can avail of triple tax benefit under the scheme. This means that the contribution made towards the scheme up to the maximum limit of Rs.1 .5 lakh, the interest earned on the contributed amount and the maturity amount is tax exempted under Section 80C of the Income Tax Act.
As compared to any other investment scheme available in the market, the Sukanya Samriddhi Yojana offers a high-interest rate of 7.6 %. The interest rate of SSY is revised every quarter. With such a lucrative rate of interest, it allows the individual to gain a high return on investment in the long term.
Helps to Create Financial Backup for the Girl Child
Pradhan Mantri Sukanya Samriddhi Yojana helps an individual to create a financial back-up for the girl child from the beginning. Moreover, the scheme also helps finance the higher education of the girl child given that 50% of the balance can be withdrawn from the account after the girl turns 18 years of age.
Once the girl reaches the age of 18 years, the account holder can make a premature withdrawal from the account to finance the higher education of the girl child. Moreover, after completion of the 5 years from the date of account initiation, premature withdrawal is allowed in case of any medical emergencies or the unfortunate demise of the parent. However, it is mandatory to submit the application form for the same.
Documents Required to Open Sukanya Samriddhi Yojana
Here is the list of documents that should be kept handy while opening a SSY account:
- Sukanya Samriddhi Yojana account opening form
- Birth certificate of the girl child
- Address proof and identity proof of the depositor
- Any other documents requested by the bank and post-office
- A medical certificate is required to be submitted in case twins or triplets are born under one order of birth