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360° view on Sukanya Samrudhi Yojana(SSY)?

#LittleSavings
If you have a girl child, you are the right place to open Sukanya Samruddhi Yojana account for your daughter's bright future.

Let's see a 360° view on Sukanya Samruddhi Yojana.

Who can open/eligible for Sukanya Samruddhi Yojana?
Only baby girls are eligible for Sukanya Samruddhi Yojana.

How many SSY accounts can open for a Single Child?
Only one account for one child.

Can both parents open two different accounts for their single daughter in Sukanya Samriddhi Yojna?
No. Only one single account per child. Any decide who can be a guardian.

How many SSY accounts can open in a family?
Only 2 accounts are allowed.

If the twins are born in the second pregnancy, then 3 accounts are allowed.

Or if there are triplets in a single delivery, then 3 accounts are allowed.

Other than these, no more than 3 accounts can be opened. If you have fourth daughter, she cannot avail SSY account. 
Even, for the twins born in two pregnancies.

What about if you have adopted a girl child?
If you have legal documents, you can open an SSY account on her name.

This raises a question, can you be a legal guardian to your brother's daughter? No, unless you adopt a child legally, you are not allowed to open an SSY account.

When can you open SSY?
Right after birth of girl's child and Indian Residents, are eligible to open SSY account.


Quick Video:



What is the best time to open SSY?
It would be good, if you open Sukanya samruddhi yojana right after the Financial Year starts i..e., between 1st April to 10th April.
And investing a lumspum amount within this period, will give huge returns.

What is the age limit to open Sukanya Samruddhi Yojana account?
The age limit is 10 years. A girl with less than 11 years of age, can open an SSY account.

What is the tenure for Sukanya Samruddhi Yojana?
21 years.
If you open account in first year, it will continue till age of 21.
If you open account in fifth year of child, the account matures at 26th age of child.
If you open at age 10, it will mature, when the girl reaches 31 years.

Any partial withdrawals allowed for Sukanya Samruddhi Yojana?
Yes. You can withdraw only 50% of amount in SSY account for child marriage or education after completing 18 years for your child.

In case of marriage, need to submit affidavit stating that the girl child crosses 18 years.

In case of Education, need to submit college admission and fee receipts. 
      This amount can be used to pay the College fees and admission charges.

Whether this amount can be used for any other purposes?
No. Sukanya Samruddhi Yojana is specifically designed for the girl child education or marriage only.

What happens if the girl married before tenure or moved to another country?
Once the girl married before tenure completion or moved to another country along with parents(when lost indian citizenship), the SSY account will be terminated.

When you should intimate to the Post Office or bank if you are getting married for account closure?
1 month before the marriage or 3 months after the marriage, provided 18 years age completion proof.

When you should intimate to the Post Office or bank if you are becoming a Non-Resident Indian?
Within 1 month before your Indian Citizenship Status changes. But it will continue to earn interest till maturity.

Does SSY account can be prematurely closed?
No. It cannot be prematurely closed.

Exceptional cases for premature closing of SSY account?
If the girl dies or having any life threatening diseases or in extreme cases if parents cannot invest funds due to financial stress.

What is the minimum and maximum amount can be invested in Sukanya Samruddhi Yojana?
Previously, the minimum amount to be deposited in SSY is 1000 rupees. 
From 2018, the minimum amount has been reduced to 250 rupees only.

The maximum amount can be deposited is 1.5 lakhs only per annum. You can invest upto 1.5 lakhs in the next year.

Do I need to invest consistently in Sukanya Samruddhi Yojana?
No. The only criteria is that, we need to invest a min amount 250 rupees in one FY for the account running.
Based on the available amounts, you can invest upto 1.5L in FY.

What happens if you fail to deposit minimum amount in Sukanya Samruddhi Yojana?
If you fail to deposit a minimum amount of 250 rupees in an year, from next year the account will be treated as Defaulter and becomes inactive.
You need to pay penalty of 50 rupees to re-use the account.

What is the present interest rate of Sukanya Samruddhi Yojana?
Previously, it is 8.4%. but during covid, the interest rate has been reduced to 7.6%(as of 2020). There was 0.8% cut in the interest rate.

How long you need to deposit to Sukanya Samruddhi Yojana?
Although, the lock in period is 21 years, you can stop depositing into Sukanya Samruddhi Yojana, once it reaches 15 years of account opening.

No deposits required after 15 years and will continue to earn interest without any deposits till 21st year.

What happens if you open SSY account at the first year, fifth year or in 10th year of a child?
First Year:
If you open SSY account in first year of a child, you need to deposit amount till 15 years. 
At the age of 18, you can withdraw 50% of amount for marriage or education.
At the age of 21, your account will be matured and can withdraw whole amount.

So, in case, if you are planning an early marriage, this option is good(presently the norms for perfect age for marriage is 25-30 for a girl).
Or else, since by the age of 18, your child will be in degree (if you join child in schooling at 4 years), you can withdraw 50% for education.

In both ways, you can use the SSY amount for both education and marriage.

Fifth Year:
If you open SSY account in fifth year of a child, you need to deposit amount till 15 years. 
At the age of 18, you can withdraw 50% of amount for marriage or education.
At the age of 26, your account will be matured and can withdraw whole amount.

Since, the at the age of 18, you can withdraw 50%, the amount is minimally less than expected since you started it late.
Instead, at the age of 26, the whole amount can be used for child marriage.

Tenth Year:
If you open SSY account in tenth year of a child, you need to deposit amount till 15 years. 
At the age of 18, you can withdraw 50% of amount for marriage or education.
At the age of 31, your account will be matured and can withdraw whole amount.

Since, by the age of 18, there is very very less amount, and even at the age of 31, this will not helpful for marriage too, you need to start opening SSY account as early as possible before your child turns 5.

Where you can open Sukanya Samruddhi Yojana?
You can open SSY account in any bank or the nearest Post offices by filling a form(available online account opening, if you have already a Savings Account).
Littlesavings- Sukanya samruddhi Yojana
How to check the balance in Sukanya Samruddhi Yojana?
You can check the balance in online for both accounts opened at banks or the post offices using internet or mobile apps.

How to transfer funds to the Sukanya Samruddhi Yojana account?
Since now SSY accounts are available online, you can easily transfer funds from your Savings Account to the Sukanya Samruddhi Yojana account. This is applicable for post office account too.

People trust post offices more than banks on SSY account opening, but need to be in person to open an account.

Can you transfer already opened accounts between banks and post offices or between the banks?
Yes. It made very easy to transfer the accounts between post offices and banks or between the banks, just by filling transfer form.

What are the documents required to open SSY account?
Birth Certificate of your child and Aadhaar Card or ID and Address Proof of the take carer(parents or legal guardian).

Is there any min initial amount to be deposited while opening an Sukanya Samruddhi Yojana?
You need to pay at least 250 rupees to open an account.

On whose name the Sukanya Samruddhi Yojana account will be opened?
The Sukanya Samruddhi Yojana account will be opened on Child's name.
And any one of the parent can submit their proofs as a guardian.

Whether the child can operate SSY account?
Parents or guardians shall operates the accounts till the child attains 18 years age.
After that, she can handle account on her own and can also made deposits.

What any one of the parent die after opening an Sukanya Samruddhi Yojana account?
The other one can be a legal guardian and can operate the account.

Or if both died, the account will be defaulted, but continue to earn interest till matured.

If the girl attains 18 years, she herself can operate the account.

Why to Invest in Sukanya Samruddhi Yojana?
SSY is one of the best and safe tool for the investments. Investing in SSY will help for your child's marriage or higher studies.
        By the time you open SSY, you have some plans for your daughter but you can get maximum benefits from the Sukanya Samrudhi Yojana plan for both children marriage and education.

How to maximize your amount from Sukanya Samruddhi Yojana?
The following tips will help you.
  • Invest amount before 10th of every month.
  • Invest in large amounts in the initial years(before 10th April of FY).

Why we need to invest before 10th of every month in Sukanya Samruddhi Yojana?
You need to deposit the funds before 10th of every month as the interest was calculated based on the lowest balance between the 10th to end of every month.

For Eg, if you invest 10,000 before the 10th of the month, this amount also will take into count for the interest calculation or else, i.e, investing after 10th of the month, this amount will not be taken for interest calculation.

How to invest systematically in Sukanya Samruddhi Yojana?
Follow these steps.
  • Fix your expected amount from SSY.
  • Use the SSY calculator to find, how much to invest to reach the goal. It can be either lumpsum or monthly.
Let's take an example:
I want a maturity amount of 25 lakhs for my girl's education.

Then I find out, how much I need to invest using the calculator.

Lumpsum:
If you invest 6 lakhs as a lumpsum(1 lakh continuously for first 6 years), you can get 25 lakhs at maturity.

Since lumpsum amount of 6 lakhs is not permissible to deposit in SSY possible, recommended for 1 lakh per year.

And after 6 years, you no need to invest any amount to reach 25 lakhs.

Monthly:
I found even 1 lakh per year is not feasible to me. I calculated for per month amount.

If you invest 4K per month till it get matured, you can get 25 lakhs on maturity.

I hope, if you have any assets, which can generate 4K per month, you can divert those funds into Sukanya Samruddhi Yojana.

Since it will not affect your goal.

*These are not real amounts. Please use the calculator to find the exact amounts.
Visit the Money Page for the Caculators.

Shall I invest more than 1.5L into SSY?
No. The maximum amount can be deposited is 1.5 lakhs only.

How to calculate maturity amount for Sukanya Samruddhi Yojana?
Although, there are wide variety of calculators available online, each calculator is showing the different results. This leads so much confusion on the final maturity amount. 

It is advisable to note it here, the interest rate for SSY changes for every quarter. So, don't rely on the maturity amount from calculators. It is only near rounded value.

What are the tax benefits for investing in Sukanya Samruddhi Yojana?
You can avail max tax benefit of 1.5 lakhs per year under 80C(including other investments).

Can my wife and me, shall claim individually tax for SSY?
No. You can claim at one side only.

If I am not a legal guardian, can I claim Tax benefit under 80C?
No. Unless you are a legal guardian or a parent, you cannot claim any tax under 80C.
There are wide questions on the tax claiming. Unless, it it meets above two conditions, you are eligible to claim Tax under 80C.

If the guardian is my wife, shall I(father) claim the tax for SSY?
Yes. If she has not claimed or not working.

What are the taxes to be paid for investing or interest or withdrawals?
SSY is considered as a Small Savings Scheme and avail no taxes anywhere.
Tax exempted at all three stages (EEE).
No tax while investing amount.
No tax on the interest earned.
No tax while withdrawal after maturity.

Compare Public Provident Fund and Sukanya Samruddhi Yojana?
Most of the people will compare both the PPF and SSF for investments.

Like SSY, the PPF is also a long term investment, but can withdraw money and avail loans on PPF.

But the beneficial factor is, SSY interest rates are always more than the PPF accounts.

Shall we open both PPF and SSY on child's name?
Yes. you can open both.

Shall I claim Tax for both PPF & SSY if I invested 1.5 L in each?
No. Under 80C, you can claim total of 1.5 lakhs for the sum of investments in PPF, SSY etc., 
Click here what covers under 80C.

Can I extend Sukanya Samruddhi Yojana after maturity like Public Provident Fund(can extend in 5 year blocks)?
No. you cannot extend. Once matured, you need to withdraw the amount.

Shall we avail loan on Sukanya Samruddhi Yojana account?
No. You cannot avail any loans on SSY.


Final Conclusion on Sukanya Samruddhi Yojana:
Sukanya Samruddhi Yojana has been specially designed, and primarily for the girl child's marriage or education.

Although, you can expect good maturity amount, but one should not completely dependent on SSY account. 

Since, the interest rate is only 1-2% more than inflation rate(7%), it is not a good choice if you are depositing the whole amount(max savings from your income) into SSY.

Final tip: As said earlier, target your maturity amount and calculate the deposit amounts, invest monthly by diverting the funds from assets.






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