Everything About Sukanya Samriddhi Yojana Scheme – A Government Policy for Girl Child!

Looking for a strategy to put money aside for your girlchild’s future schooling and wedding costs? In January 2015, the Sukanya Samriddhi Yojana, a deposit program introduced as part of Prime Minister Narendra Modi’s Beti Bachao Beti Padhao initiative, gained appeal among households with only female children. The program offers several incentives to start saving, including three alluring tax perks, to secure girls’ futures.

A government savings program known as the Sukanya Samriddhi Yojana was developed to help female children. Under this program, a girl’s parent or legal guardian who is 10 years old or younger may establish an account. Although this plan has a higher interest rate, there are significant tax benefits.

What do you mean by Sukanya Samriddhi Yojana?

A small deposit program supported by the government for a female child’s needs is known as the Sukanya Samriddhi Yojana (SSY). It was introduced as part of the “Beti Bachao, Beti Padhao” program. The program includes a section 80C income tax credit. Also tax-free are the refunds.

You may build up a sizable corpus via regular payments over the years, which can then be utilised to support your child’s future aspirations.

Advantages of the Sukanya Samriddhi Yojana Scheme

Good Interest

Compared to other savings plans that guarantee financial stability for girls, Sukanya Samriddhi Account offers a greater rate of return. The government announces the relevant interest rate for each fiscal year; nevertheless, the interest on your assets is compounded annually. Due to the power of compounding, your SSY account’s assets will have increased significantly by the time it matures.

Benefits of Assured Maturity

Your account amount under the Sukanya Samriddhi Yojana, including any accrued interest, would be given to the female child (or policyholder) immediately after maturity. Therefore, the program effectively assists your daughter in being financially independent and empowered whenever she is old enough to make her own life decisions.

Tax Benefit:

Up to Rs. 1.5 lakh per year, SSY offers Section 80C tax deduction benefits.

Flexible Investment:

The annual minimum and maximum deposits are each Rs. 250 and Rs. 1.5 lakh, respectively. Through this scheme, people from different financial backgrounds can invest in this program

SSY funding scheme is a long-term profitable investing strategy since it gives the benefit of yearly compounding. However, even tiny investments will provide enormous returns in the coming times.

The expense of higher education

You may withdraw 50% of the account balance as of the end of the preceding financial year to cover your female child’s schooling costs. You can get this by submitting your admissions documents.

What requirements must be met to create a Sukanya Samriddhi Account?

  • A girl’s father or legal guardian may open the account on her behalf.
  • The girl must be younger than 10 years old.
  • A girl kid is only permitted one account.
  • Only two SSY scheme accounts may be opened per household.

Tax Advantages of the SSY Scheme

Additionally, the SSA has been given several tax advantages to attract investments in SSY:

  • Investments made in the SSY plan are deductible under Section 80C with a limit of Rs. 1.5 lakh.
  • Under Section 10 of the Income Tax Act, the interest that is accrued on this account and is compounded annually is likewise not subject to taxation.
  • Additionally, income tax is not due on the sums received upon maturity or withdrawal.

Major Highlights of the SSY Scheme

Even well-known government programs cannot compare to the profits offered by the SSA account, which also delivers higher returns than any fixed deposits or standard savings accounts offered by banks.

To help you understand the Sukanya Samriddhi Yojana Account (SSA) before you decide to invest, here is a guide.


The first minimum deposit for an SSA account is INR 250, and subsequent payments must be made in multiples of INR 50. A maximum annual investment should not exceed INR 1,50,000. After 15 years have passed since the account was first opened, the deposit matures. Therefore, deposits for a 5-year-old must continue until the youngster becomes 20.

Untimely account closure

In urgent situations and if the beneficiary or account holder (guardian) passes away, the post office or bank will offer early closure of the deposit with interest in exchange for supporting documentation. The account holder may also request a closure if they marry after turning 18 years old.

Eligibility Criteria

A girl under the age of 10 can have her guardian open an account at any bank or post office branch. A maximum of two accounts are permitted in a household with two females or twins or triplets upon presentation of the relevant medical authority’s birth certificates. SSA accounts cannot be opened by non-resident Indians (NRI).

Finality on maturity

After fifteen years, the SSA account matures. Accounts that have not kept a minimum balance of INR 250 during the course of a fiscal year are said to be in default.

Partial withdrawal

If the account user reaches the age of 18 or has completed the tenth grade, they may withdraw up to 50% of their initial deposit.

Account Switching

Banks, post offices, and other financial institutions accept transfers of accounts.

What is the SSY investment process?

Through participating public and private banks and post offices, investors can apply for the SSY Program. A few papers must be submitted, and investors must complete the steps outlined below:

Documents needed to create an account under the Sukanya Yojana

Any participating Post Office branch or bank will let you open an SSY account. To open the account, adhere to the below instructions.

  • Go to the post office or a bank where you would like to create an SSY account.
  • Complete the application form with the required information, and add any supporting documents.
  • Pay the first deposit in cash, by cheque, or by demand draught. From 250 to 1.5 lakh rupees may be received as payment.
  • The bank or the post office will handle your application and payment.
  • Your SSY account will be enabled after processing. To mark the account’s opening, a passbook will be sent.

How Can I Access the SSY Scheme through Online mode?

Downloading the IPPB app on your smartphone is required before you may make any transaction to your SSY account. This program allows you to create recurring requests for a particular amount to be transferred online into an SSY account. Below are the detailed instructions:

  • The IPPB account must receive money from your bank account.
  • In the DOP Products section of the IPPB app, choose the SSY account.
  • You must provide both your DOP client ID and your SSY account number.
  • Choose your preferred installment schedule and payment amount.
  • The IPPB will let you know when the payment procedure has been successfully established.

Name of the Banks that offer the SSY Scheme

Below we have outlined the name of the banks that are covered by SSY – Sukanya Samriddhi Yojana:

  • State Bank of Travancore
  • State Bank of India
  • State Bank of Mysore
  • State Bank of Jaipur and Bikaner
  • State Bank of Hyderabad
  • State Bank of Patiala
  • Andhra Bank
  • Allahabad Bank
  • Punjab and Sind Bank
  • Bank of Baroda
  • Indian Overseas Bank
  • Bank of Maharashtra
  • Dena Bank Indian
  • Central Bank of India
  • Bank UCO Bank
  • United Bank of India
  • Bank of India
  • Syndicate Bank
  • Punjab National Bank
  • ICICI Bank
  • Oriental Bank of Commerce
  • Corporation Bank
  • Union Bank of India
  • IDBI Bank
  • Axis Bank
  • Vijaya Bank

Rules for Withdrawing Money from SSY Account

After investing for a total of 15 years, you may withdraw your money in full or in part. You may also take your money early.

Withdrawal upon investment maturity

When investments mature, principal and interest may be withdrawn. To withdraw, the required paperwork must be provided:

  • Withdrawal request form
  • ID and address verification proof
  • If a girl reaches the age of 18 and has finished her tenth grade, she may withdraw from her current course of study to pursue further education.
  • When requesting a withdrawal, the documentation of admission to an educational institution must be provided. The admissions documentation, including the student ID and admissions card.
  • 50% of the total amount available in the prior fiscal year is the maximum amount that may be withdrawn.
  • You can withdraw the money all at once or in five equal payments.

Investment retraction before expected

When the girl child turns 18 years old, a premature or partial withdrawal of investment is permitted due to the marriage. The application must be submitted one month before the wedding, along with documentation of the girl’s age.

Deposit Maximums for SSY Scheme

SSY Account contributions can range from as little as Rs. 250 per year to as much as Rs. 1.5 lakh every fiscal year. For up to 15 years after the account is opened, you must make annual investments of at least the required minimum. After then, interest will keep accruing on the account until it matures.

SSY Maturity Period/ Duration

A girl participating in the SSY is eligible to do so till she is 21 years old or until she marries after turning 18 years old. But only 15 years’ worth of donations are necessary. After then, interest will continue to accumulate until maturity even if no deposits are made into the SSY account.

Final Words

With the SSY, which encourages female children to save money, the government has provided a helping hand. The investment has a sovereign guarantee and is a good investment due to its EEE status for the needs of your female child. The 21-year lock-in duration can be a huge turnoff for anyone who needs to spend the money sooner. In comparison, the Equity Linked Saving Scheme (ELSS), a tax-saving investment alternative, has a shorter lock-in term of just three years. The best part is that investing in ELSS for the long term gives you the possibility to make double-digit returns.

The SSY is safe and risk-free, so you can invest some of the money you set away for your daughter there.


Who is eligible to create an SSY- Sukanya Samriddhi Account?

You can establish an SSY Account if you are a girl’s parent or legal guardian. You can deposit a certain amount into this account regularly and receive interest every year. By doing this, you’ll be able to build up a corpus that will be useful when your daughter reaches the age of further study or marriage. SSY is a program that the government introduced in 2015.

Is it possible for me to make an early withdrawal from my SSY account?

No. When the girl child has reached the age of at least 18 years, only a partial withdrawal of up to 50% is permitted. Only expenses related to a girl’s wedding or higher education are eligible for this withdrawal.

How long till an SSY Account matures?

After 21 years have passed since the account was opened, or when a girl child who is 18 years old or older marries, the SSY account matures. The account holder must supply a birth certificate as evidence of the female child’s age.

When girl child’s parents can leave the Policy?

When the insured girl child becomes 18 and needs the money for further education, the SSY Account permits a 50% withdrawal of the money deposited. The account does, however, mature when 21 years have passed since the account’s establishment.

Can I invest in the SSY online?

Currently, you may obtain the SSY form online. However, the application and investment must be made at a local post office or certain branches of collaborating public/ private banks.

If my daughter and I relocate abroad, may I still invest in SSY?

The girl child’s SSY account must be terminated if she loses her Indian nationality or turns into an NRI.