Sukanya Samriddhi Yojana Deposit Rules

Sukanya Samriddhi Yojana is the most popular risk-free saving scheme for the financially secure future of girl children in the country. In this regard, knowledge of rules pertaining to SSY deposits assumes significance. This present article is an in-depth look into the intricacies of Sukanya Samriddhi Yojana deposit rules and gives valuable insights to parents and guardians.

Requirements for Opening an Account in Sukanya Samriddhi Yojana

Eligibility criteria—

• A Girl Child below the age of 10 years
• Only one account per single girl child; two accounts can be opened in the case of two girl children in a single family
• Account holder has to be an Indian citizen

Required Documents:

• The birth certificate of the girl child
• Proof of identification of parent-guardian: Aadhaar card, PAN card or Passport
• Proof of address
• Two passport sized photographs of child and one of guardian

Sukanya Samriddhi Yojana: Know the Minimum and Maximum Deposit Limits

Annual Deposit Range:

• Minimum: ₹250 per financial year
• Maximum: ₹1,50,000 per financial year

Key Points:

– Deposits in multiples of ₹100

– No limit on number of deposits during a financial year

– Aggregate deposit not to exceed ₹1,50,000 in a year

Deposit Frequency and Methods in in Sukanya Samriddhi Yojana 

Flexible Deposits:

– Lump-sum deposits

– Regular monthly or quarterly deposits 

Methods for Deposits:

– Cash at post offices or banks

– Cheque or Demand draft

– Online transfer facility available only in a few banks

Sukanya Samriddhi Yojana: Interest Rates and Computation

Present Interest Rate:

• 0% per annum (W.E.F 2024, Likely to Change)

Computation of Interest Rate:

• Yearly,
• Compounded yearly,

Credited at the end of each financial year

• Penalty for Default in Deposits

Grace Period:

• 12 months from the end of the financial year

Penalty Amount:

• ₹50 yearly on accounts where deposits are less than ₹250

Revival of Account:

• Pay minimum amount adjoined with penalty for regularizing the account
• Deposit Period and Maturity of Account

Account Period:

• 21 years from the date on which such account was opened

Conditions for Maturity:

• Account matures when it completes 21 years or in the case of marriage of the girl child after attaining the age of 18 years, whichever is earlier

Deposit Period:

• Deposits have to be made for a period of 15 years, from the date of opening of the account

Partial Withdrawal in Sukanya Samriddhi Yojana: Eligibility and Conditions

Eligibility:

• Allowed after the account holder has completed 18 years of age

Withdrawal Amount:

• 50% of balance at the close of the previous financial year

Purpose:

• Higher education-related expenses or marriage

Proof to be furnished:

• Proof of admission to a higher educational institute or marriage certificate
• Premature Closure Norms

Premature Closure Allowed:

– Upon death of the account holder

– On compassionate grounds (serious illness or financial loss)

Procedure:

• Application to the post office or bank where the account is held

Death certificate or medical documents to be submitted

• Account Transfer and Portability

Transfer of Account from One Post Office to Another:-

• Free of cost
• Application to be submitted at present post office

Transfer of Account from one Bank to Another :-

• Can be made between approved banks
• It may involve some nominal charges

Transfer from Post Office to Bank -vice-versa :-

Permitted provided proper documentation

Sukanya Samriddhi Yojana: Tax Benefits and Implications

Tax Deduction

Investments eligible for deduction under Section 80C of Income Tax Act

Maximum deduction of ₹1,50,000 per financial year

Tax-Free Returns:

Interest earned and maturity amount are tax-free

Online Management and Digital Initiatives 

Online Account Access:

• Available for accounts opened in nationalized banks
• Check balance, deposit status, and interest calculations

Digital Payments:

Some banks allow online deposits through net banking or mobile apps

Special Provisions for NRIs and PIOs

NRI/PIO Eligibility:

Can open accounts for their girl children who are Indian citizens

-Account to be opened and operated through a power of attorney holder in India

Documentation:

-Requires additional proof of NRI/PIO status

Effect of Marriage of Account Holder

Prior to attaining the age of 18 years:

-The account shall be closed immediately

-Interest payable only up to the month preceding the month of marriage

After attaining the age of 18 years:

-The account may continue till maturity

-Option to close the account without penalty

Deposit Rules for Guardian with Disabilities

Special Provisions:

– Guardian with specified disabilities can open and operate accounts

– Relaxed norms for account operation and signature requirements

• Future of SSY Deposit Rules

Possible Amendments:

– Interest rates may be hiked to keep it still lucrative

– More digital integration for smoother depositing and management of the account

– Upper age limit for opening the account to be increased (under consideration)

Conclusion

Rules on Sukanya Samriddhi Yojana deposits open avenues for safe, profitable savings for girl children in India. Parents or guardians must know these rules so that appropriate decisions may be taken and maximum benefits derived from the scheme. Due to the flexibilities in deposits, attractive interest rate, and tax benefits, SSY does become one of the very fundamental building blocks to develop the financial future of a girl child. It has been under perpetual development and thus plays an important role in giving financial inclusion and empowerment to girls throughout the country unanimously.