SSY – Sukanya Samriddhi Yojana: Empowering the Girl Child

Introduction
SSY, also known as Sukanya Samriddhi Yojana, is a government-backed small savings scheme aimed at securing the future of girl children in India. This scheme is a part of the Beti Bachao, Beti Padhao Yojana and provides financial assistance for their education, marriage, and overall well-being. By understanding the features, eligibility criteria, account opening process, deposit options, checking balance, and withdrawal rules, individuals can effectively utilize the benefits of the SSY scheme.

Features of SSY
The Sukanya Samriddhi Yojana offers several attractive features:

1. Flexible Deposit Options
   Parents or legal guardians can open an SSY account with a minimum deposit of Rs. 250 per annum. The maximum deposit limit is Rs. 1.5 lakh per annum, allowing individuals to contribute according to their financial capacity.

2. Competitive Interest Rate
   The interest rate for the scheme is revised quarterly by the government. As of Q1 (April – June) FY 2023-24, the interest rate stands at 8% per annum. This interest is compounded annually, ensuring that the savings grow steadily over time.

3. Long Maturity Period
   The SSY account has a maturity period of 21 years from the date of opening or until the girl child marries after attaining the age of 18. This extended tenure enables the account to accumulate a substantial corpus for the girl’s future needs.

4. Portability and Transferability
   One of the convenient aspects of the SSY scheme is that the account can be transferred anywhere in India from one post office or bank to another. This allows flexibility for individuals who may relocate or wish to manage their accounts through a different branch.

5. Tax Benefits
   Contributions made to the SSY account, the interest earned, and the maturity benefits are eligible for tax exemption under Section 80C of the Income Tax Act, 1961. This provides individuals with significant tax savings and encourages long-term savings for the girl child’s welfare.

6. Premature Withdrawal Provision
   In case of financial emergencies or educational expenses, a premature withdrawal of up to 50% of the investment is allowed after the girl child reaches 18 years of age, even if she is not getting married. This provision offers financial flexibility while ensuring the account’s long-term growth.

Eligibility Criteria for SSY
To open an SSY account, certain eligibility criteria must be met:

1. SSY accounts can only be opened by parents or legal guardians of a girl child.
2. The girl child must be under the age of 10 at the time of opening the account.
3. Only one SSY account can be opened in the name of a girl child.
4. A family is allowed a maximum of two SSY accounts, i.e., one account per girl child.

Note: Exceptions to the two-account limit include cases of twins or triplets born in the first or second order, where multiple accounts can be opened on submission of an affidavit and relevant birth certificates. Additionally, if a girl child is adopted after having a biological girl child, another account can be opened for the adopted girl child, provided she meets the age criteria.

How to Open an SSY Account
Opening an SSY account is a simple process that can be completed by following these steps:

1. Visit any designated bank or post office branch that offers the SSY scheme.
2. Fill out the SSY account opening form and submit it along with the required documents, such as identity proof, address proof, and the girl child’s birth certificate.
3. Deposit the initial amount (minimum Rs. 250) in cash or through a cheque.
4. Collect the passbook provided by the bank or post office, ensuring its safekeeping for future reference.

How to Deposit Money in SSY Account
Contributing funds to an SSY account can be done through various modes of payment, including:

• Cash
• Cheque
• Demand Draft
• Online Transfer
• Standing Instruction

Individuals can choose the mode that suits their convenience and make regular deposits within the minimum and maximum deposit limits. It’s important to note that failing to make any deposit in a financial year will attract a penalty of Rs. 50 along with the minimum deposit amount for account revival.

How to Check SSY Account Balance
To stay updated on the SSY account balance, individuals have the following options:

1. Passbook: Visit any designated bank or post office branch and update the passbook. This allows individuals to check the account balance and track transactions.
2. Online Banking: Register for online banking facilities provided by the bank or post office. This enables individuals to access their SSY account balance and transaction details through net banking or mobile banking platforms.

SSY Account: Tax Benefits, Withdrawal Rules, Transfer, and Closure

Tax Benefits of SSY Account
Investing in the Sukanya Samriddhi Yojana (SSY) account provides various tax benefits:

• Contributions made to the SSY account are eligible for deductions under Section 80C of the Income Tax Act, 1961, with a maximum limit of Rs 1.5 lakh per annumIf you do not deposit the minimum amount of Rs. 250 in a financial year, your SSY account will become inactive, resulting in the loss of interest earnings. To reactivate the account, a penalty of Rs. 50, along with the minimum deposit amount, must be paid.
• The interest earned on the SSY account is also tax-freeIf you do not deposit the minimum amount of Rs. 250 in a financial year, your SSY account will become inactive, resulting in the loss of interest earnings. To reactivate the account, a penalty of Rs. 50, along with the minimum deposit amount, must be paid.
• The maturity amount received from the SSY account is exempt from taxIf you do not deposit the minimum amount of Rs. 250 in a financial year, your SSY account will become inactive, resulting in the loss of interest earnings. To reactivate the account, a penalty of Rs. 50, along with the minimum deposit amount, must be paid.
• This triple tax benefit of EEE (Exempt-Exempt-Exempt) status makes the SSY account an attractive investment option.

Withdrawal Rules of SSY Account
Withdrawals from the Sukanya Samriddhi Yojana account follow specific rules and procedures:

1. Partial Withdrawal: The account holder can withdraw up to 50% of the available balance at the preceding fiscal year for the girl child’s marriage or higher education expenses. This withdrawal can be made in one lump sum or in installments over a period of five years, according to the prescribed limits and fee/charge conditions.
2. Age-Based Withdrawal: After a girl child reaches the age of 18 or completes 10th standard, she becomes eligible to withdraw money from her SSY account. To initiate a withdrawal, the account holder must submit documents such as university or college admission papers and fee receipts, supporting the purpose of withdrawal.

Withdrawals from the SSY account are governed by the following guidelines:

1. Eligibility for Withdrawal: When a girl child reaches the age of 18 or completes the 10th standard, she becomes eligible to withdraw funds from the SSY account. It is important to note that if the minimum deposit amount of Rs. 250 is not made in a financial year, the SSY account becomes inactive, resulting in the loss of interest earnings. To reactivate the account, a penalty of Rs. 50, along with the minimum deposit amount, must be paid.
2. Withdrawal Limitations: The account holder can withdraw up to 50% of the available balance from the preceding fiscal year for the purposes of the girl child’s marriage or higher education. Similar to the previous point, if the minimum deposit amount of Rs. 250 is not made in a financial year, the SSY account becomes inactive, leading to the loss of interest earnings. To reactivate the account, a penalty of Rs. 50, along with the minimum deposit amount, must be paid.
3. Withdrawal Options: Withdrawals can be made either as a lump sum or in installments once a year for a maximum period of five years. However, the withdrawal amount is subject to prescribed limits and applicable fees/charges. As mentioned earlier, it is crucial to ensure the minimum deposit amount of Rs. 250 is made in each financial year to keep the SSY account active.
4. Required Documents: To initiate a withdrawal, specific documents such as university or college admission papers and fee receipts need to be submitted. These documents serve as evidence for the purpose of the withdrawal and ensure compliance with the withdrawal process. Additionally, it is essential to maintain regular deposits of the minimum amount to prevent the account from becoming inactive and incurring penalties.

Please note that failure to deposit the minimum amount of Rs. 250 in a financial year will result in the SSY account becoming inactive, leading to the loss of interest earnings. To reactivate the account, a penalty of Rs. 50, along with the minimum deposit amount, must be paid.

To withdraw funds from an SSY account, follow these steps:

1. Visit the bank or post office branch where the SSY account is held.
2. Fill out the withdrawal application form and submit it along with the necessary documents, including proof of identity, address, and the purpose of withdrawal.
3. Collect the desired withdrawal amount in cash or via a cheque, or choose to transfer it to another account.

Transfer Rules of SSY Account
Transferring an SSY account is a straightforward process:

• The SSY account can be transferred from one post office or bank branch to another anywhere in India without incurring any charges.If you do not deposit the minimum amount of Rs. 250 in a financial year, your SSY account will become inactive, resulting in the loss of interest earnings. To reactivate the account, a penalty of Rs. 50, along with the minimum deposit amount, must be paid.
• To transfer an SSY account, follow these steps:

1. Visit the current bank or post office branch where the SSY account is held.
2. Fill out the transfer application form and submit it along with the passbook and any required documents.
3. Obtain an acknowledgment slip and proceed to the new bank or post office branch where the account is to be transferred.
4. Submit the acknowledgment slip and any necessary documents, and collect the new passbook.

Closure Rules of SSY Account
Closing an SSY account is subject to specific rules:

• The SSY account can be closed after 21 years from the date of opening or when the girl child marries after attaining 18 years of age, whichever occurs earlierIf you do not deposit the minimum amount of Rs. 250 in a financial year, your SSY account will become inactive, resulting in the loss of interest earnings. To reactivate the account, a penalty of Rs. 50, along with the minimum deposit amount, must be paid.If you do not deposit the minimum amount of Rs. 250 in a financial year, your SSY account will become inactive, resulting in the loss of interest earnings. To reactivate the account, a penalty of Rs. 50, along with the minimum deposit amount, must be paid.
• To close an SSY account, follow these steps:
  

1. Visit the bank or post office branch where the SSY account is held.
2. Fill out the closure application form and submit it along with the passbook and any required documents, such as a marriage certificate if applicable.
3. Collect the maturity amount in cash, via a cheque, or choose to transfer it to another account.

Note: Closure of an SSY account is not permitted one month prior to the scheduled marriage date or after three months from the marriage dateIf you do not deposit the minimum amount of Rs. 250 in a financial year, your SSY account will become inactive, resulting in the loss of interest earnings. To reactivate the account, a penalty of Rs. 50, along with the minimum deposit amount, must be paid..

Premature Closure Rules of SSY Account
Premature closure of an SSY account is allowed only in exceptional circumstances:

• Premature closure is permitted in cases such as the death of the account holder, medical treatment of life-threatening diseases for the account holder or guardian, or extreme compassionate grounds like loss of livelihood due to natural calamitiesIf you do not deposit the minimum amount of Rs. 250 in a financial year, your SSY account will become inactive, resulting in the loss of interest earnings. To reactivate the account, a penalty of Rs. 50, along with the minimum deposit amount, must be paid.If you do not deposit the minimum amount of Rs. 250 in a financial year, your SSY account will become inactive, resulting in the loss of interest earnings. To reactivate the account, a penalty of Rs. 50, along with the minimum deposit amount, must be paid.
• To close an SSY account prematurely, follow these steps:
  

1. Visit the bank or post office branch where the SSY account is held.
2. Fill out the premature closure application form and submit it along with the passbook and any required documents, such as a death certificate, medical certificate, or proof of calamity.
3. Collect the balance amount along with interest at a rate 1% lower than the applicable rate till the closure date, in cash, via a cheque, or choose to transfer it to another account.

By understanding the tax benefits, withdrawal rules, transfer procedures, and closure guidelines of an SSY account, individuals can make informed decisions and effectively manage their investments for the betterment of the girl child’s future.

Conclusion
Sukanya Samriddhi Yojana (SSY) stands as a powerful tool to secure the future of the girl child in India. By providing an avenue for long-term savings with attractive interest rates and tax benefits, the scheme empowers parents or legal guardians to invest in their daughters’ education, marriage, and overall development. With its flexible deposit options, portability, and premature withdrawal provisions, SSY ensures financial flexibility while promoting the financial inclusion and empowerment of the girl child.

Frequently Asked Questions (FAQs) about SSY – Sukanya Samriddhi Yojana