Sukanya Samriddhi Yojana
The Sukanya Samriddhi Yojana is a savings scheme launched by the Indian government as part of the “Beti Bachao, Beti Padhao” campaign. It is exclusively for the girl child and meant for covering her education and marriage expenses. The assured returns, EEE (Exempt Exempt Exempt) tax exemption, interest rate, and maturity amount are other additional benefits. One can use the Sukanya Samriddhi Yojana calculator to determine the maturity amount and the exact amount that can be saved for a girl’s education and other purposes.
Sukanya Samriddhi Yojana is a savings scheme run by the central government with the goal of securing a girl’s future. Under this scheme, a girl child must be 10 years of age or younger to open an account.
Features Of Sukanya Samriddhi Yojana
- The minimum annual contribution to the Sukanya Samriddhi Account is Rs. 250, and the maximum annual contribution is Rs. 1.5 lakh in a financial year. Investors must invest at least the minimum amount every year for up to 15 years from the date of account opening. Following that, the account will continue to earn interest until maturity.
- Sukanya Samriddhi Yojana has a term of 21 years or till the girl child marries after reaching the age of 18. However, contributions are required for only 15 years. After that, even if no deposits are made into the SSY account, interest will still accrue until maturity.
- If an SSY account holder fails to make the minimum deposit of Rs. 250 in a given financial year, his/her account will be deemed a “Default Account.” This default account will earn the applicable rate of interest until its maturity date. However, the defaulted account may also be reinstated prior to the expiration of 15 years from the date of account opening by making a payment of at least Rs. 250 + Rs. 50 for each year that it was in default.
- A girl child can manage her own account after the age of 18 years. As soon as she turns 18 and provides the post office or bank where the account is maintained with all the required paperwork, she is qualified to operate the account.
- SSY investments are classified as EEE (Exempt, Exempt, Exempt) investments for tax purposes. This means that the principal invested, interest earned, and maturity amount are exempt from taxation. Under the present taxation regulations of the Sukanya Samriddhi Yojana, the tax deduction benefit on the principal amount invested is up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act, 1961.
Premature Closure of Sukanya Samriddhi Yojana (SSY) Account
Premature closure can only be done by a girl child after she reaches the age of 18 for the purpose of marriage expenditures. However, there are certain circumstances in which the account can be closed and the respective amount can be withdrawn:
- The untimely death of the account holder
In the event of the untimely death of a girl child, the parents or legal guardian are allowed to retrieve the account’s balance. Additionally, the parents or legal guardian must provide the pertinent documents attesting to the account holder’s death.
- Inability to continue the account
In the event that the competent authorities issue any instructions regarding the depository’s inability to continue holding the account, the Sukanya Samriddhi Account may be prematurely cancelled. Additionally, the account might be closed if the depositor is experiencing any form of financial strain as a result of making the donation to the account. To process the closure and settlement of the account, necessary authorization from the relevant authorities must also be obtained.
It is to be noted that the account under the Sukanya Samriddhi Yojana would only be closed in exceptional instances, such as life-threatening diseases or medical emergencies.
How is interest calculated on Sukanya Samriddhi Yojana?
The Sukanya Samriddhi Yojana (SSY) calculator uses the compound interest formula to calculate the interest.
A = P(1+r/n)^nt
Where,
A-Compound Interest,
P – Principal Amount,
r – Rate of Interest,
n – Number of times interest compounds in a year,
t – Number of years
Who Can Use the Sukanya Samriddhi Yojana Calculator?
While anybody can use the Sukanya Samriddhi Yojana (SSY) calculator online, in order to invest in the scheme, an individual must be able to meet the requirements listed below.
- The girl needs to be an Indian citizen.
- The girl should not be more than ten years old.
- There is a limit of two SSY accounts per family, and an additional account may be opened in the event of twins or triplets.
- The SSY account scheme allows the child’s guardian or parents to open and manage the account.
To open an SSY account, the family must be able to provide the following documentation.
- Girl child’s birth certificate
- Proof of the depositor’s (parent or legal guardian) identity. They may present either a passport, a PAN card, a driver’s license, or a ration card.
- Proof of residence for the depositor (parent or guardian). A passport, driver’s license, ration card, utility bill, or phone bill are all acceptable forms of identification.
- Any other paperwork that the relevant authorities may require.
The Sukanya Samriddhi Yojana calculator can be used by families who meet the aforementioned requirements and have all the required paperwork. The calculator helps determine the maturity value and provides an estimate of how much they can save for education and marriage-related expenses.
How To Use Sukanya Samriddhi Yojana Calculator?
The Sukanya Samriddhi Yojana (SSY) calculator is very easy to use. One can determine the maturity amount of their investment in the Sukanya Yojana by entering the correct details in the fields.
One only has to enter the following details:
- Investment per year: The amount the depositor intends to put aside each year for his or her girl child is indicated in this field.
- Girl’s age: The age of the girl for whom the SSY account is to be opened should be entered in this section.
- Start year: This field indicates the starting year of the investment.
The Sukanya Samriddhi Yojana calculator returns the following values:
- Maturity year: This field displays the year that the scheme reaches maturity. It matures in 21 years.
- Maturity amount: The final investment value in the Sukanya Samriddhi Yojana is provided in this section.
- Interest rate: Since the government sets the interest rate, investors do not need to be concerned about entering this value.
Consider the following illustration. Mr. Suraj intends to contribute Rs. 10,000 annually to the Sukanya Samriddhi Yojana for his daughter. The investment began when the youngster was only a few months old in 2021. The current interest rate is 7.60%. He now wants to know the return on his investment when it reaches maturity. He would reach maturity in the year 2042 with a maturity sum of Rs. 4,39,538, with the interest earned on an investment of Rs. 1,50,000 being Rs. 2,89,538.
How does the SSY calculator work?
By filling out the Sukanya Samriddhi Yojana Calculator’s essential fields, such as investment per year, girl’s age, and start year. The calculator will assist in calculating the maturity amount and maturity year. The calculator automatically does the computation for you using the most recent SSY interest rate released by the government.
The Sukanya Yojana has a lock-in term of 21 years (tenure to maturity). 7.60% is the current interest rate. The investor must make at least one investment every year for 15 years to keep the account open. From the 15th year, the investor can choose not to make any contributions to the account until the 21st year. Nonetheless, the SSY account will continue to earn returns at the rate of interest applicable to the previous investments.
Assumptions made by the calculator online
- Each year, the exact same amount is invested.
- Between the 15th and the 21st years, no investments were made. Interest is calculated on the contributions that have already been made.
- The interest rate remains constant at 7.60% for the entire 21-year program’s lifespan (current rate announced by the government)
- Annual payments are made on April 1st of each year.
- Monthly payments are made on the first of each month.
- There have been no withdrawals for 21 years
Transfer of Sukanya Samriddhi Yojana Account
One of the primary advantages of the SSY Account is that it can be transferred from one part of India to another. According to current regulations, one can easily transfer this tax-saving deposit account for girl children from one Indian post office to another or from one designated bank branch to another. One must complete and turn in a transfer request form to the competent authorities of the Indian post office where the account is currently located in order to start the transfer of the SSY account from a post office. In the event that one needs to transfer the deposit from one designated bank branch to another, similar transfer forms are available both online and offline.
Advantages of Sukanya Samriddhi Yojana Investment (SSY)
The Sukanya Samriddhi Yojana, which was launched as a part of the Beti Bachao, Beti Padhao Yojana initiative, offers investors a number of advantages. Here are some of the main advantages of this scheme:
- Interest Rate: Compared to other government-backed tax saving programmes like the Public Provident Fund (PPF), Sukanya Samridhi Yojana (SSY) offers a higher fixed rate of return (currently 7.6% annually for Q2 FY (2022-23)).
- Guaranteed Returns: Since SSY is a government-backed scheme, returns are guaranteed.
- Taxation: SSY offers tax benefits up to Rs. 1.5 lakh per year under Section 80C.
- Flexible Investment: The annual minimum and maximum deposits are Rs. 250 and Rs. 1.5 lakh, respectively. This ensures that investors from diverse financial backgrounds can participate in the programme.
- Advantage of compounding: Sukanya Samriddhi Yojana (SSY) is a great long-term investment plan since it offers the benefit of annual compounding. Therefore, even small investments will generate significant returns over time.
- Convenient Transfer: In the event of the transfer of the parent or guardian operating the Sukanya Samriddhi Account, the SSY account can be freely transferred from one region of the country to another.
Sukanya Samriddhi Yojana (SSY) Interest Rates
| Period | SSY Interest Rates |
| 1st April 2022 – 30th June 2022 | 7.60% |
| 1st January 2022 – 31st March 2022 | 7.60% |
| 1st April 2020 – 31st December 2021 | 7.60% |
| 1st July 2019 – 31st March 2020 | 8.40% |
| 1st October 2018 to 30th June 2019 | 8.50% |
| 1st January 2018 to 30th September 2018 | 8.10% |
| 1st July 2017 to 31st December 2017 | 8.30% |
| 1st April 2017 to 30th June 2017 | 8.40% |
Frequently Asked Questions (FAQs)
-
What are the eligibility requirements for investing in the SSY scheme?
The following requirements must be met in order to invest in the Sukanya Samriddhi Yojana:
-
- The girl must be a resident of India.
- The girl must be under the age of ten.
- Only two SSY accounts can be opened per family, and an additional account can be opened if there are twins or triplets.
- The account can be opened by the child’s parents or legal guardian.
-
How to invest in the Sukanya Samriddhi Yojana (SSY) ?
You can invest in this plan through your local post office or authorized branches of partnering public and private banks. Along with the necessary form and initial payment by check or draft, you must submit KYC documents such as your passport or Aadhaar card.
Investors must complete the Sukanya Samriddhi Yojana (SSY) Application Form, which can be acquired by going to a nearby post office or participating public or private sector bank. Alternatively, you can get the SSY New Account Application Form from the following websites:
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- The Reserve Bank of India website
- The India Post website
- Individual websites of public sector banks
- The websites of participating private sector banks
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How to fill in the Sukanya Samriddhi Yojana (SSY) Application Form?
In order to participate in the Beti Bachao, Beti Padhao Yojana, applicants must submit the SSY Application Form with some pertinent information about the girl child whose name the investment would be made. It is also necessary to provide information about the parent or legal guardian who will open the account and make deposits on her behalf. The SSY Application Form includes the following important fields:
-
- Name of the Girl (Primary Account Holder)
- Name of the parent or guardian opening the account (Joint Holder)
- Initial deposit amount
- Check/DD Number and Date (used for an initial deposit)
- Girl child’s birthdate
- Primary account holder’s birth certificate details (Certificate number, date of issue, etc.)
- Parent/Guardian Identification Details (Driving License, Aadhaar, etc.)
- Current and permanent address (as listed on the parent’s or guardian’s ID documents)
- Details about any other KYC documents (PAN, Voter ID card, etc.)
- After the aforementioned information has been entered, the form must be signed and submitted to the account opening authority (Post office/Bank Branch) along with copies of the necessary papers.
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