Nivesh Mantra:- Sukanya Samriddhi Yojana (SSY) – Interest Rate 2024, Tax Benefits, Eligibility, Bank List, Age Limit & Other Details
| Investment value | Minimum value – Rs.250 and Maximum value – Rs.1.5 lakh per annum |
| Current yearly interest rate | 8.2% per annum |
| Maturity value | Would vary depending on the value invested |
| Maturity duration | 21 years from the date of investment |
What is the Sukanya Samriddhi Yojana (SSY)?
In order to majorly address the issue of the declining child sex ratio in our country, the Government of India launched a social campaign on 22 January 2015. The Beti Bachao Beti Padhao (BBBP) campaign sends the message ‘Save girls, educate the girl child’. This is a national initiative jointly run by the Ministry of Women and Child Development, the Ministry of Health and Family Welfare, and the Ministry of Human Resource Development.
BBBP aims at achieving the following:
- To stop gender discrimination against children and abolish the practice of sex determination.
- To ensure the survival and protection of girls.
- To ensure higher participation of girls in education and other areas.
SSY aims at tackling a major problem associated with the girl child – education and marriage. It is focused on securing a bright future for the girl child in India by facilitating the parents of a girl child in building a fund for the proper education and carefree marriage expenses of their child. SSY has introduced the Sukanya Samriddhi Account for this very purpose.
Sukanya Samriddhi Yojana age limit and maturity period
Opening SSY account
A girl child can only have one SSY account. SSY accounts can be opened at any post office or authorised commercial bank branch. It can be opened at any moment between the birth of the girl child and the age of 10 years.
- The account can be transferred anywhere in India from one Post office/Bank to another.
Beneficiary of SSY
Any girl child who is a resident Indian is a beneficiary under SSY from the time of opening the account till the time of maturity/closure.
Deposits under SSY
The guardian can deposit the amount and operate the account till the girl child attains the age of 18. The SSY account shall be mandatorily operated by the girl child after she attains the age of 18 years. The minimum deposit amount for an SSY account is Rs.250 (this amount was previously Rs.1,000), thereafter in multiples of Rs.50, and the maximum is Rs.1,50,000 in every financial year, up to 15 years. Deposits can be made through cash, cheque, demand draft or online transfer.
Interest on deposits
The rate of interest for the FY 2024-2025, i.e. 1 Jan 2024 to 31 March 2024 is 8.2% p.a. The entire deposit in ‘Account under default’ (where a minimum amount of Rs.250 per year has not been deposited), which is not regularised within the prescribed time, would earn interest till the maturity date of the account. ‘Account under default’ can be regularised within 15 years of Account opening on payment of a penalty of Rs.50 per default year.
No interest is payable after the completion of tenure of the SSY, i.e after 21 years from account opening. No interest accrues after the girl child becomes a non-citizen or a non-resident of India. Any deposit made above the maximum cap, i.e. Rs.1,50,000 per year will not earn any interest and can be withdrawn anytime by the depositor
Maturity period of SSY
The maturity period of SSY is 21 years from the account opening or upon her marriage after attaining 18 years. However, contributions have to be made for only 15 years. Thereafter, the SSY account will continue to earn interest until maturity even when no deposits are made into it.
Benefits of Sukanya Samriddhi Yojana
- Low Minimum Deposit:The minimum deposit required to maintain an SSY account is Rs.250 per fiscal year. You can make deposits as per your convenience up to Rs.1.5 lakh per fiscal year. The payments seem very affordable for people from all sections of society. Even if you happen to miss out on paying for a year, a penal charge of Rs.50 will be levied on the missed minimum payment of Rs.250 but the account will be continued.
- Attractive Interest Rate:Currently enjoys an 8.2% per annum compounded interest rate (as of Q3 FY 2023-24) – one of the highest among small savings schemes.
- Tax Benefits:Enjoy full tax deduction on principal invested up to ₹1.5 lakh per year under Section 80C of the Income Tax Act. Both interest and maturity amount are tax-free.
- Long Tenure:Secure your daughter’s future with a 21-year maturity period or until her marriage after 18 years (whichever is earlier).
- Educational Expenses Covered:You can withdraw 50% of the account balance as of the previous financial year’s end to meet the educational expenses of your girl child. This can be availed by submitting proof of admission.
Guaranteed Returns: Since SSY is a government-backed scheme, there is a
guarantee of returns upon its maturity.
Convenient Transfer: The SSY account can be transferred from any post office to a bank or vice-versa anywhere in India.
Tax benefits of Sukanya Samriddhi Yojana
In order to encourage investments in SSY, the SSA has also been provided with certain tax benefits:
Investments made in the SSY scheme are eligible for deductions under Section 80C, subject to a maximum cap of Rs 1.5 lakh.
The interest that accrues against this account which gets compounded annually is also exempt from tax under Section 10 of the Income Tax Act.
The proceeds received upon maturity/withdrawal are also exempt from income tax.
One of the highest among small savings schemes Current yearly interest rate 8.2% per annum.