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Sukanya Samriddhi Yojana Scheme & Rules – In Detail

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Sukanya Samriddhi Yojana Account Scheme & Rules

  • Minimum deposit ₹ 250/- Maximum deposit ₹ 1.5 Lakh in a financial year.
  • Account can be opened in the name of a girl child till she attains the age of 10 years.
  • Only one account can be opened in the name of a girl child.
  • Account can be opened in Post offices and in authorised banks.
  • Withdrawal shall be allowed for the purpose of higher education of the Account holder to meet education expenses.
  • The account can be prematurely closed in case of marriage of girl child after her attaining the age of 18 years.
  • Account can be transferred anywhere in India from one Post office/Bank to another.
  • The account shall mature on completion of a period of 21 years from the date of opening of account.
  • Deposit qualifies for deduction under Sec.80-C of I.T.Act.
  • Interest earned in the account is free from Income Tax under Section -10 of I.T.Act.

Click for Scheme Forms

Sukanya Samriddhi Yojana interest rates

Interest Rate Since Inception

PERIODRATE OF INTEREST (%)
03.12.2014 TO 31.03.20159.1
01.04.2015 TO 31.03.20169.2
01.04.2016 TO 30.09.20168.6
01.10.2016 TO 31.03.20178.5
01.04.2017 TO 30.06.20178.4
01.07.2017 TO 31.12.20178.3
01.01.2018 TO 30.09.20188.1
01.10.2018 TO 30.06.20198.5
01.07.2019 TO 31.03.20208.4
01.04.2020 TO 31.03.20227.6

Click here for Scheme Rules

How many years need to pay for Sukanya Samriddhi Yojana?

Under the scheme, the account shall mature on completion of a period of 21 years from the date of opening of account. In case of early withdrawal, withdrawal of upto a maximum of fifty percent of the amount in the account is allowed at the end of the financial year preceding the year of application for withdrawal.

This withdrawal shall be allowed for the purpose of education of the account holder, provided that such withdrawal shall be allowed after the account holder attains the age of eighteen years or has passed tenth standard, whichever is earlier.

Benefits of Sukanya Samriddhi Yojana

1. High Interest

Sukanya Samriddhi Account provides a higher rate of interest than other investment plans that offer financial security for the girl child. Each financial year, the government declares the applicable interest rate for that year, while the interest on your investments is compounded yearly. By maturity, the assets under your Sukanya Samriddhi Yojana account will increase manifold – thanks to the power of compounding.

2. Significant Tax Savings

Your contributions towards the Sukanya Samriddhi Yojana for your daughter’s future are eligible for tax deductions under Section 80C of the Income Tax Act 1961. Thus, you can claim tax deductions up to Rs 1.5 lakh invested in the scheme. The tax-saving benefits are available on the interest earned and the amount received upon maturity or withdrawals.

The Sukanya Samriddhi Yojana is under the authority of the Department of Revenue (DOR) and is one of the more popular investment schemes that come with the exempt-exempt-exempt (EEE) status.

3. Guaranteed Maturity Benefits

At maturity, your account balance under the Sukanya Samriddhi Yojana, including the accumulated interest, will be paid directly to the girl child (or policyholder). Thus, the scheme essentially helps your daughter becomes financially independent and empowered once she is mature enough to make life decisions on her own.

Another benefit of investing under Sukanya Samriddhi Yojana is that your accumulated savings continue to accrue compounding interest even after maturity until it is finally closed by the account holder.

Tax Benefits of Sukanya Samriddhi Yojana

If you have an account under SSY then you are eligible to avail of tax benefits on deposits. Let’s take a look at the tax benefits provided by Sukanya Samriddhi Yojana.

a) Since an SSY account is a type of investment, it is eligible for deductions provided u/s 80C of the Income Tax Act. You can avail of a deduction of up to Rs 1,50,000.
b) The compound interest that is accumulated in your deposit account is also exempt from tax.
c) The withdrawals are also tax-free. Thus, once your account matures you can withdraw the amount without deduction.

Thus, all these benefits make Sukanya Samriddhi Yojana an E-E-E instrument. That is, Exempt-Exempt-Exempt.

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