Sukanya Samriddhi Yojana Post Office

Another major initiative from the Government of India was the Sukanya Samriddhi Yojana, launched in 2015 under the “Beti Bachao, Beti Padhao” campaign. It’s a small savings scheme designed to ensure financial security for every girl child in India regarding education and welfare. It’s one of the most preferred investments with exceptional interest rates and tax benefits for parents or guardians investing in their daughters’ future.

Key Features of Post Office Sukanya Samriddhi Account

Feature	Description
Beneficiary	Girl child below 10 years (Max 2 per family)
Objective	Supports education and marriage expenses after 18 years.
MinimumInvestment	Rs. 250 minimum, in multiples of Rs. 50.
MaximumInvestment	Rs. 1.5 lakh/year
InterestRate	8.2% p.a. (compounded annually)
MaturityPeriod	21 years or marriage after 18

1. Number of Accounts

Coming to them, one of the most unique features of Sukanya Samriddhi Yojana is the cap on the number of accounts that can be opened by a parent or guardian, which is one account per girl child and, at the most, two accounts if there are two girl children in one family. This will help concentrate investment and also prevent misuse.

Under special conditions, that is, with the subsequent twin girls or with the first one if it is girl child’s birth, the third account shall be permitted. But then, documentation about these should be very proper and affidavits should be shown in order to make these valid.

2. Deposits

Deposits into the Sukanya Samriddhi Account can be flexibilized. The minimum initial deposit for opening an account is ₹250, and other subsequent deposits will be in multiples of ₹50. There is a spare rule for a minimum amount of ₹250 to be saved in the account in a year to prevent closure. The maximum amount that can be deposited in a financial year is ₹1,50,000.

This scheme is unique in the sense that deposits towards this account can be made in multiple convenient ways. Account holders can deposit cash, cheque, or demand draft at any post office. Besides this, most of the post offices now have online deposit facilities, hence helping parents to contribute regularly towards their daughter’s future.

3. Tenure

The same goes directly to the ultimate purpose of securing the future of the girl child, which is on a very long investment horizon. Hence, the Sukanya Samriddhi Account shall mature 21 years from the date of opening or on marriage of the girl child after she attains 18 years of age, whichever is earlier.

This extra-long tenure helps to significantly compound interest, which would result in possibly a large corpus coming out by the time the girl comes of age. Another aspect is that it inculcates much-needed discipline in parents and guardians for long-term saving.

4. Eligibility

The Sukanya Samriddhi Yojana is specifically for girl children; therefore, there are strict eligibility criteria:

• The account may be opened for the girl child whether she is born just now or anytime earlier but has not attained the age of 10 years. Only parents—natural or legal guardian (being father or mother or court-appointed)—are authorized to open the account in the name of the girl child, since she is not eligible to open an account on her own.
• The girl child for whom the account stands opened should be a resident of India on the date of opening of the account.

5. Withdrawal

For the integrity and long-term objectives of the scheme, withdrawals from the Sukanya Samriddhi Account are restricted:

Up to 50% of the account balance may be withdrawn when the girl child reaches the age of 18 years. This withdrawal system is allowed toward higher education expenses or the marriage of the girl.

The account is allowed to be prematurely closed in only two extreme reasons: that is, either by death, that is on the event of death of the account holder, or in cases which fall on compassionate grounds.

Matures after 21 years from the date of opening, and the entire amount is convertible to withdrawable money. 

It has to be clearly kept in mind that these conditions prevent early withdrawal, hence the amount saved remains available for the rightful claim of the girl child at the time of needs, that is, higher education and marriage expenses of the girl child.

6. Activation

Activation of Sukanya Samriddhi Account involves no hassles:

Such an account can be opened in any post office, subject to the required documents, which include substantiation for the birth of a girl child and proof of the guardian’s identity.

• Activation of the opened account is impossible until one makes a minimum initial deposit of ₹250.
• The account shall be continued or activated by the depositor annually by depositing a minimum amount of ₹250.

If a minimum deposit is not made in a financial year, that account becomes deactivated; however such inactive account can be activated if the penalty of ₹50 per annum of default shall be paid along with a minimum deposit amount.

Interest Rate on Post Office Sukanya Samriddhi Yojana

Apparently, one of the most exquisitely unique features of Sukanya Samriddhi Yojana has to be the competitive interest rate. The interest rate an SSY account comes with is decided by the government, which rather sounds more decent than many other small saving schemes.

• A Sukanya Samriddhi Account offers an interest rate of 8.0% per annum from FY 2023-2024. The interest gets compounded yearly, and due to the very long tenure of the account, the growth of the invested amount is massive.
• Take note as well that the interest rate remains all under review and revision by the government on a quarterly basis. Mainly these have become qualified by Sukanya Samriddhi Yojana since it was introduced, since it maintained one of the highest interest rates among government-sponsored small savings schemes.
• Add to it the power of compounding along with applicable interest rate, and it can justify huge wealth creation for the girl child over the 21-year tenure. If the parent continues to invest ₹1,50,000 annually at the current rate of 8.0%, by the time the scheme matures, the corpus post completion of 21 years may probably cross ₹75 lakhs, the interest rate variations kept in mind. 

Eligibility Criteria to Apply for Post Office Sukanya Samriddhi Yojana

• The earlier the account is opened, gives more time to the investment to grow through compounding.
• Age of Girl Child: The account can be opened for a girl child from her birth to attaining the age of 10 years. That means you get a full 10-year window to begin investing in the future of your daughter. The account can be opened for a girl child from her birth to attaining the age of 10 years. That means you get a full 10-year window to begin investing in the future of your daughter.
• Citizenship and Residency:
  • – The girlchild should be a resident of India at the time of opening of the account.
  • – Non-resident Indians cannot open a Sukanya Samriddhi Account.
  • – In case of change in the residency status of the girl child subsequent to opening of the account, the account may continue though no fresh deposits shall be allowed.

• Account Holder:
  •   – The account is opened in the name of the girl child.
  • – As the account cannot be operated in the name of the minor girl due to legal restriction until she reached 18 years, any one suitable guardian can operate this type of account. In case of parents, both or either one of the parents may act as the guardian of the girl child.

• In case of adopted children, the account can be opened and operated by adoptive parents.
• Guardian Eligibility:
  • – This account may be opened and operated by natural/legal guardian in the name of the minor girl. An account can also be opened by father  of girl child. Natural Guardians are parents, on the death of any one of the natural guardians, the person appointed by the court becomes a natural guardian.
• Number of Accounts
  • ∗ A guardian can open and maintain only one account in a name of one girl child during the scheme period.
  • ∗ Ideally, the scheme should be kept restricted to a maximum of two accounts in a family, i.e., to two girl children from one family.
  • – In case of twin girls or triplets as the second birth or if the first birth itself gives two or more girl children, a third account may be permitted with due documentation.
• Income Criteria:

There are no such restrictions on any income basis for opening of Sukanya Samriddhi Account. Any earning family, be it low, middle, or high earning can contribute to this scheme hence it is all-inclusive and open to all.

• Documentary Requirements:

The girl child has to be necessarily born on or after 08.12.2003 and birth certificate is a must while the guardian—parents or guardian—shall have to prove identity and address proof

In case the child is adopted, adoption deed has to be provided.

• Transfer of Account:

 The account is transferable in case the family shifts to any post office or authorized bank in India.

 This facility just keeps on the continuation of the investment even when residence is changed.

How to Open a Sukanya Samriddhi Yojana Account in Post Office

• Step 1: Select a Post Office

– Locate a nearby post office that delivers the Sukanya Samriddhi Yojana Scheme.

  -: All Head Post Offices and almost all working Sub-Post Offices, both rural and urban, have this facility.

• Step 2: Get an Application Form

  -: You can visit the chosen post office.

– Ask for the Sukanya Samriddhi Account opening form.

  – The form will be available with the post office branch nearly for no charges at all.

Some postoffices offer to download the form for you from the site.

• Stage 3: Complete Application Form

 Fill in all the fields in the application form.

 Make sure the info is supporting with that of the supporting documents provided.

Failure to do so, may result in the delay or rejection of the application.

• Step 4: Collect Documents Required

The following documents should be ready-

The birth certificate of the girl child

Identity proof of guardian- Aadhar card, PAN Card or Voter ID

In case of a different address mentioned in guardian’s identity proof, provide proof of the address of guardian as well.

Furnished two passport-sized photographs of a guardian

Furnished two passport-sized photographs of the girl child

• Step 5: Deposit of First Payment

[Any initial deposit amount]

Minimum initial deposit is ₹250.

Additional deposits in the multiples of ₹50; a minimum deposit of ₹250 to be made once every year.

• Step 6: Application Submission

Along with the filled application form giving the documents referred to and the initial deposit amount, an individual has to visit the post office.

After heading to the post, submit them to the appropriate postal staff.

• Documents verified, application processed by the staff.

• Step 7: Collect Acknowledgement

  – The post office shall give an acknowledgment receipt to the customer in case they are able to successfully submit the form.

  – This receipt would be some form of evidence concerning the application until the account is formally opened.

• Step 8: Account Activation

– The application will then be processed and an account opened.

– This may approximately take a few working days.

– Once opened, it is activated on the date of receiving the first deposit.

• Step 9: Account Details Given

– The post office provides the account number as well as the passbook.

This passbook should be kept safely. All the ledger entries of transactions and interest accruals will be made in this passbook.

• Step 10: Activation of Standing Instructions
• Setting up of a systematic deposit system in the account
• Payment can be accepted in any post office either in cash, through cheques, or by electronic transfer if the facility is available.
• Regular deposits by the subscriber will enable him to benefit fully from compounding over a long period.

Other points to note:

Online application facility:

Majority of the post offices accept the applications online

*Check in your location if this facility is available for applying speedily.

Transfer of Account

Favored account can be transferred to other post office.

On this point, I had called up customer care. Post office says that if one needs to transfer the account to another post office, then you approach your current post office with a transfer application in a .

Interest Rate Updates :

• Be updated with any changes in the rate of interest, as it keeps getting revised quarterly by the government.

– Tax Benefits:

• Be aware that some of the tax benefits that accrue this scheme are available under Section 80C of the Income Tax Act.

– Withdrawal Rules:

Be aware though, partial withdrawal is allowed after the girl child attains the age of 18 years for related education or marriage purposes.

Maturity:

Note that the account matures in 21 years from the date of opening or when the girl gets married after turning 18, whichever comes first.

Documents Needed to Open a Post Office SSY Account

• Birth Certificate of the Girl Child:

This is said to be the most essential document while opening a Sukanya Samridhi Account.

The birth certificate should be issued by an authority recognized by authorities like a municipal corporation or panchayat.

This would be an evidence for age and justification in support of the girl child.

• Identity Proofs for Guardian/guardians:

– Proof of Identity of Guardian: A valid identity proof needs to be provided by a guardian parent or a legal guardian.

  – Documents which may be produced to avail of admission to the institute are:

 * Aadhaar Card

 * PAN Card

 * Voter ID Card

 * Driving License

 * Passport

 Identity Proof should be Government Issued and Self-Attested with a photograph.

• Address Proof of the Guardian:

 If the address of residence in the identity proof is the same as the current address, that can be accepted as address proof.

 If the residence address mentioned in the Identity proof is different from the current address then additionally, address proof will also have to be submitted:

-Utility bills like electricity bill or water bill or telephone bill

-Bank statement

-Ration card

The address proof would be only recent, not older than 3 months.

• Photographs:

-Two recent passport-sized photographs of the guardian.

-Two recent passport-sized photographs of the girl child.

-Photographs should be clear and taken against a light background.

• Guardian Details:

-In the case where a legal guardian opens the account, the appointment by the court has to be instantly shown as documents of importance.

-In the case of an adoptive parent, the legal adoption papers must be submitted.

• Account Opening Form:

-Completely filled Sukanya Samriddhi Account opening form.

 -Correctly and legibly filled form.

 -Signature of the guardian in the account opening form, which should be free, and it should be the same with the signature on their ID proof.

• Initial Deposit:

 -Proof of initial minimum of ₹250.

 -May be in cash, cheque, or demand draft.

• PAN Card of Guardian:

-Though not mandatory at the time of opening, it is desirable to mention the PAN card.

  – It would be needed for income tax purposes and for deposits above a threshold.

• Proof of Girl Child’s Indian Residency:

  – This is generally automatically satisfied via the birth certificate.

  – If ascertained, any other additional proof of the residency status from the child may be asked.

• Declaration Forms:

– A declaration showing that no other Sukanya Samriddhi Account exists in the name of the girl child.

  – In case it’s the second account for another girl child in the family, a declaration to this effect.

• Additional Documents in Special Cases:

  – In the case of twin girls/triplets: The medical certificate to this effect showing multiple births.

Account in the Name of a Girl Child.

For this purpose, the birth certificate of the girl child shall be provided.

Or

– In case of adopted girls: Adoption deed-court order

Sukanya Samriddhi Account Facility with Post Office

• High Interest Rate:

-One of the highest interest rates among Government backed small savings schemes.

-Continues at a rate of 8.0% per annum for 2023-2024.

-Interest rates are liable to probably revision and change every quarter by the Government.

• Tax Benefits

– Contributions in Sukanya Samriddhi Account is exempt from tax under Sec 80C of IT Act.

– Interest accrued as well as maturity proceeds are tax-free in the hands of depositor

This triple tax benefit makes the scheme very attractive since it’s EEE – Exempt, Exempt, Exempt.

• Government Backing
  • The scheme is targeted on small girl children, and the Government of India provides its backing to the scheme in that way.
  • This comes with a government guarantee, providing full peace of mind for parents/guardians.
• Long-Term Saving:
  • The account tenure is 21 years from the date of opening.
  • Long-term tenure ensures the accumulation of substantial wealth through compound interest.

• Girl Child Welfare Oriented:

This was exclusive for the welfare and education of girl children. It supports the “Beti Bachao, Beti Padhao” government-promulgated scheme.

• Flexibility in Deposits: The minimum amount of contribution in this account shall be ₹250, whereas the maximum contribution that can be made in a single year is ₹1,50,000. Deposits in this account shall be allowed as lump-sum or in installments. This facility helps the financial condition of families.

• Partial Withdrawal Facility:

  – One can withdraw up to 50% of the balance after the girl child turns 18.

– This amount can be withdrawn to meet higher education or marriage.

 – Provision of financial support at important decision-making stages in a girl child’s life processes.

• High Accessibility:

 – Can be opened from any post office within India.

• Scheme reach is further extended even to the remotest areas owing to this very extensive network of post offices.
• Low Minimum Investment:

In this scheme, the minimum initial deposit to be made is ₹250. Thus, it can easily be availed by families of all economic strata.

• No Market Risk:

 Unlike market-linked investments, wherein minimum return is assured irrespective of the state of the market, in this scheme, returns are guaranteed. Thus, rule out the fluctuations normally associated with the market.

– This will secure to her a safe and predictable financial future.

• Loan Facility:

– On the attainment of 18 years of age, a loan facility of up to 50% of the balance at the end of the previous financial year.

  – It could be utilized for education or any other emergency needs.

  ***

• Transferability:
• The account can be transferred to any post office in India in case of a transfer of the family.
• This provides continuity of the investment even when residence changes.
• Enforces Financial Discipline:
• The scheme, being of a long nature with a requirement for regular deposit, ensures habit formation in families for saving and planning of finances from an early stage.
• Multiple Accounts Allowed:
• Any family is allowed to open a maximum of two accounts—that is, it can enroll a maximum of two girl children.

In case of twins or triplets, even a third account may be allowed.

• Maturity Options:

  – The account matures 21 years from the date of opening or when the girl gets married after turning 18, whichever is earlier.

  – This gives flexibility according to the life cycle events of the girl.

• Continuation After Marriage:

In case of early marriage, the account can be continued, but after thorough filling of certain conditions.

 No financial loss in respect of: saying no financial loss, meaning no matter what the reason or ground is, a marriage that unfortunately takes place before a girl steps into the actual world where she wishes to stand with the support of good education could be compensated out of what is saved under this scheme.

• No Attachments:

 Court attachment—this account will not be attached by any process of law.

 legal disputes against the family are safeguarded of the girl’s money

• By providing a significant corpus for higher studies, it enables families to keep on investing in the educational pursuit of daughters.
• Contributing to Financial Inclusion:

Unlike the above, the scheme empowers an increasing number of families to become part of the formal financial system.

It creates tremendous awareness among people related to long term savings and investment.

Conclusion

The Sukanya Samriddhi Yojana is such a scheme that provides comprehensive benefits with easy documentation, hence on a platter to grow to be one of the most formidable tools in securing the financial future of a girl child in India. It brings financial security and acts as a contributor to the change in societal attitudes toward the girl child. Attractive returns and tax benefits, along with an investment focus on the long term, go a great way toward making it methodical. This shall be effectuated through the wide network of post offices, therefore making the scheme accessible to families across the country and hence affording the goal for this initiative of saving to be an inclusive one, as envisioned by the government: empowering the girl child.