HomeLAWS & SCHEMESGovernment SchemesSukanya Samriddhi Yojana 2021 Details

Sukanya Samriddhi Yojana 2021 Details

The Government of India launched the ‘Beti Bachao, Beti Padhao’ scheme back in January 2015. It aims to uplift and bring about a positive change in attitude towards the girl child in the society. Along with this scheme, the Central Government also launched a savings scheme for the girl child called ‘Sukanya Samriddhi Yojana’. The following article provides a thorough explanation of all aspects of this scheme.

What is Sukanya Samriddhi Yojana scheme?

The Sukanya Samriddhi Yojana account plans to ensure that the girl child’s future prospects are safe by aiding her education and marriage financially. Under the Sukanya Samriddhi Yojana account, the parent or guardian of the girl child can open a savings account for her under any post office branch or designated public sector bank. Unlike Kisan Vikas Patra, deposits made under Sukanya Samriddhi Yojana, along with interest and maturity, are exempt from tax under Section 80C of the Income Tax Act. Although, one cannot take out a loan against the Sukanya Samriddhi Yojana account deposit.

Sukanya Samriddhi Yojana

Eligibility criteria for Sukanya Samriddhi Yojana

  • The Sukanya Samriddhi Yojana account can only open for girl children who are under the age of 10 years. Need to submit an age proof to advocate this during the account opening.
  • This account can be opened by the parent or legal guardian of the girl child on behalf of her.
  • Only one account is allowable for one girl child.
  • A single parent can open a maximum of two such accounts in the name of two of his girl children.
  • In the special case of having girl triplets upon the first birth, all three kids can have individual accounts. Need to submit a medical document proof by the hospital for this.
  • Also, in the case of twin girls on the second birth, both kids can have individual accounts. Need to submit a medical document proof by the hospital.

Documents required to open account

  • Certificate of birth – The birth certificate of the girl child, in whose name the account is going to open, from the hospital where she was born or by a government official.
  • Proof of address – An address proof of the parents or the guardian of the girl child, such as Aadhaar card, voter ID card, ration card, electricity bill, telephone bill, passport or driving licence.
  • Identity proof of parent/guardian – An identity proof of the parent or guardian opening the account such as Aadhaar card, voter ID card, ration card, driving license, PAN card or passport.

Once the account is active, it is transferrable to any other bank or post office branch in India. In case both parents of the child expire or are unable to run the account, then the legal guardian has to step in and take charge of the account. Also, the girl child, on whose behalf the account is, can operate the account herself once she attains 10 years of age if she wants to.

Minimum deposit required

  • A minimum of Rs. 250 needs to be deposited in the Sukanya Samriddhi Yojana account each year.
  • The maximum amount of deposit allowable in a financial year is Rs. 1.5 lakhs.
  • The number of deposits made in a month or a year has no upper limit.
  • Deposits can be made through cash, cheque and demand drafts.
  • In case the deposit for a year is missed, then the account is deactivated. To reactivate the account a penalty fee of Rs. 50 per year has to be paid on top of the minimum yearly deposit.

Rate of interest

  • The rate of interest for Sukanya Samriddhi Yojana sees a revision every quarter by the Central Government.
  • Upon launch, the rate of interest for the scheme was 9.2%.
  • As of 1st April 2021, the rate of interest for the scheme in this quarter stands at 7.6%. In the past, it has even been higher than 8%.
  • Its rate of interest is always a fraction higher than the PPF scheme.

Trick to earn more

To earn more in the Sukanya Samriddhi Yojana scheme, one can follow this simple trick. The interest cut off date in this scheme is the 10th of every month. If one is depositing money in this scheme account after the 10th of any month, then they are missing out on the interest earned for that month. Example, A deposits Rs 5000 per month on the 11th of the month. In this case, A is losing a minimum of 240 days worth of interest on his investment.

Thus, one must always aim to deposit his investment before the 10th of every month. Additionally if one is investing on the first of the month then they will get interest on the whole month. To make this deposit process easier, you can also submit a standing instruction to your bank, to transfer a certain amount to your Sukanya Samriddhi Yojana account each month on a given date.

Maturity of Sukanya Samriddhi Yojana account

  • The account validity lasts for a period of 21 years from the date it opens. Post this the account matures. The total amount is paid to the girl child, in whose behalf is the account.
  • If the account is not closed post maturity, the remaining balance will gain interest in the scheme as specified during that period.
  • The account will close automatically if the girl child gets married before the account completes the duration of 21 years.
  • Although the account can receive deposits up to 15 years from the time it opens. For the next 6 years, the account will only earn interest as per the applicable rate during that period.

Premature withdrawal

  • Only the girl child in whose name is the account can withdraw money from the account before it completes the duration of 21 years.
  • This is also only possible when the girl attains the age of 18 years.
  • This withdrawal is capped at 50% of the account balance of the previous financial year. And it is allowable only for the purpose of higher education or marriage of the girl.
  • Furthermore, withdrawal is also allowed in the case of death of the parent or guardian. Or if the girl child has developed a fatal disease and needs the money for her medical treatment.
  • For this withdrawal to happen, the account must have regular deposits for a period a minimum of 14 years.

Premature account closure

This can take place under two circumstances as follows –

  1. If the girl child, in whose name the account was opened, expires then her parents or guardian can claim the remaining account balance. A death certificate is needed as proof in this case.
  2. If the authorities are of the opinion that it is not possible for the depositor to continue the account deposits or that it is leading to difficulties.

Sukanya Samriddhi Yojana (SSY) Vs Public Provident Fund (PPF)

PARAMETERSSSYPPF
1. Minimum
Investment
Rs 250Rs 500
2. Maximum
Investment
Rs 1,50,000Rs 1,50,000
3. Rate of Interest 7.6% compounded annually 7.1% compounded annually
4. Eligibility Legal Guardian/Natural Guardian can open account in the name of Girl ChildAll Indian Citizens can open the account in their own name
5. Tenure21 years (Investment Period up to 15 years)15 years with unlimited extension in 5-year block
6. Tax Deductions Investment – Exempted u/s 80C
Interest and Maturity – Exempted 
Investment – Not Exempted
Interest and Maturity – Exempted
7. Liquidity Not Available Partially available through withdrawal/ loan
8. LoanNot Available Available 
9. Channels of
Purchase 
Only through post office & designated national banksOnly through post office & designated national banks
10. Auto Renewal Not Applicable Applicable 

How to calculate investment?

Use this link to calculate your interest and maturity earned for the investment.

Sukanya Samriddhi Yojana account

To know more about Sukanya Samriddhi Yojana, check out the two videos below:

If you liked this blog, then don’t forget to check out other blogs on government schemes –
Ayushman Bharat Yojana (PMJAY) Eligibility Check Procedure, Finding CSC & Golden Card Application
Atal Pension Yojana Benefits

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Heena Siddique
Heena Siddique
Bibliophile. Turophile. Foodie. Tea enthusiast. Shopaholic. Sitcom addict. Movie buff.

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