Sukanya Samriddhi Accounts – SSY
Table of Contents
What is Sukanya Samriddhi Accounts – SSY
Sukanya Samriddhi Account is a Government of India backed saving scheme targeted at the parents of girl children. This encourages parents to build a corpus for education and marriage of their female child. It was launched as part of the ‘Beti Bachao Beti Padhao’ campaign. The investment can be done at India Post Offices.
What is the interest rate on SSY
- Interest rate is 7.6% per annum (compounded yearly) wef 01.04.2020
Tax benefit of investing in SSY
- Amount invested in SSY is allowed as deduction under section 80C upto Rs 1.5 Lacs per annum.
- The returns are tax free. Hence, the interest accrues annually is exempt from tax.
- The proceeds or redemption amount at maturity is exempt from tax.
SSY Investment amount
- Minimum amount Rs 250/- in a financial year
- Maximum amount Rs 150,000/- in a financial year
- Subsequent deposit in multiple of INR 50/-
- Deposits can be made in lump-sum
- No limit on number of deposits either in a month or in a Financial year
Salient features of SSY
- A legal Guardian/Natural Guardian can open account in the name of Girl Child.
- A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different Girl children.
- Account can be opened up to age of 10 years only from the date of birth.
- If minimum Rs 250/- is not deposited in a financial year, account will become discontinued and can be revived with a penalty of Rs 50/- per year with minimum amount required for deposit for that year.
- Deposits may be made in the account till the completion of a period of fifteen years from the date of opening of the account
- Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.
- Account can be closed after completion of 21 years.
- Normal Premature closure will be allowed after completion of 18 years on the occasion of marriage (1 month before and 3 month from date of marriage)
- Online Deposit facility is available through Intra Operable Netbanking and IPPB Saving Account.
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