All you need to know about Sukanya Samriddhi Yojana
About Sukanya Samriddhi Yojana
The Sukanya Samriddhi Yojana a scheme started by the Government of India with the objective of supporting the girl child. It was launched by PM Narendra Modi in January 2015 and is conceptualized to provide financial freedom and bright future to the girl child in India. Sukanya Samriddhi scheme is a small savings scheme and part of the “Beti Bachao Beti Padhao” campaign. It supports the educational and marriage needs of girls.
Under this scheme, parents of a girl child can deposit up to Rs 1.5 lakhs in the name of the girl in Sukanya Samriddhi account every year. After the deposit is made it accumulates interest at the prevailing rate and the account matures when the girl gets married or after 21 years, whichever comes first. Any parent of girl child can open the Sukanya Samriddhi account with a deposit of Rs. 1000. The subsequent deposits should be multiples of Rs. 100. A partial withdrawal from the account can be made when the girl turns 18 years old for financing her education or even her marriage. Another important feature of Sukanya Samriddhi scheme is that investments need to be made only for 14 years after which the account will continue to accrue interest till the scheme matures.
Benefits of Sukanya Samriddhi Account
Opening a Sukanya Samriddhi Account can be a useful investment for the welfare of girl child. Few of the benefits of Sukanya Samriddhi account are highlighted below.
1) Hassle free opening – This account can be opened very easily by the parent/legal guardian of the girl child. It can be opened at any of the designated post office or bank branch and involves simple documentation.
2) Low opening amount – Sukanya Samriddhi Account can be opened with a deposit of just Rs 1000. It makes sure that maintaining this account will not put financial burden on the family. The maximum deposit permitted under this scheme is Rs 1,50,000 per year.
3) High Interest rate – This account gets an interest of 8.1% per annum in 2018-19 which is amongst the highest for saving schemes. This interest is compounded annually, building an aggregation of funds at the time of maturity. The high interest rate is one of the major Sukanya Samriddhi Yojana benefits.
4) Various deposit modes – Contributions towards this account can be made either in the form of cheque, cash, demand draft and online transfer (if available).
5)Tax benefit – Deposits made to Sukanya Samriddhi account are eligible for tax benefit under Section 80C of the Income Tax Act, making it a great tax saving option. The interest earned till the time of maturity is also tax-free, ensuring that the girl get the full amount without any deductions.
6) Payment given only to girl – Only the girl child under whose name the account was opened is eligible to withdraw the amount on maturity. This makes sure that the money can be used by the girl as per her wish. It is a unique and important Sukanya Yojana benefit.
7) Transfer option – The account can be transferred to any authorised post office or bank branch in the country, making it easy for the family in case they are relocating.
Eligibility for Sukanya Samriddhi Scheme
1) The account can be opened by the parent or legal guardian of the girl child anytime from her birth till she attains the age of 10 years. A proof of age of girl child must be attached with the application form.
2) Under the rules of the Sukanya Samriddhi scheme, the account can only be opened and operated in the name of a girl child.
3) As per the Sukanya Samriddhi yojana eligibility rules, the parent or guardian of the girl child is eligible to open the account for only two girl children. In the event of birth of twin girls resulting in three girl children, the account for third girl child can be opened.
How to open Sukanya Samriddhi account
A Sukanya Samriddhi Account can be opened in any designated post office branch or authorised bank branches of govt and private banks. In most cases, banks that offer the facility to open a Public Provident Fund (PPF) account also have the facility for Sukanya Samriddhi Yojana. Few banks also provide the facility of Sukanya Samriddhi account opening online.
Documents that are needed to open a Sukanya Samriddhi Account include
1) Fully filled Sukanya Samriddhi Account Opening Form.
2) Birth certificate or age proof of the girl child.
3) Identity proof of the parent or legal guardian. It can be Aadhar card, election ID, PAN card, ration card, driving licence or passport.
4)Address proof of the parent or legal guardian). Any one of the passport, ration card, electricity bill, telephone bill, driving licence can be furnished.
A minimum deposit of Rs 1000 is needed to open the Sukanya Samriddhi account at an authorized Post office or bank. There is no limit to the number of deposits that can be done in a year but the cap for maximum amount is Rs 150000 per year. It is important to note that if the depositor misses a deposit for any particular year, he/she will have to pay a penalty of Rs 50. If you wish to open the account online, check the official website of the bank and read how to open Sukanya Samriddhi account online.
How To Open a Sukanya Samriddhi Account in a Post Office?
Post office was the first institution where the facility of Sukanya Samriddhi accounts was made available. After introduction of Sukanya Yojana in post office, now many banks also offer this service but Post office is still a popular and convenient option for opening a Sukanya Samriddhi account. Here is the process to apply for Sukanya Yojana in post office.
Account opening process for post office Sukanya yojana:
1) Download and print the form available on the RBI portal https://rbidocs.rbi.org.in/rdocs/content/pdfs/494SSAC110315_A3.pdf
2) Write all the necessary details in the form.
3) Collect the original and copies of necessary documents that include:
- a) Photographs of the girl child and parent/guardian together.
- b) ID proof of the depositor/parent.
- c) Address proof of the depositor/parent.
- d) Birth certificate or age proof of the girl child.
4) Submit all of the above documents and the application form at the nearest authorized post office.
For any specific query on post office Sukanya Yojana, you can get in touch with staff at the local post office branch.
Sukanya Samriddhi Scheme application form
Parent of a girl child can open a Sukanya Samriddhi Account by visiting his/her local post office or an authorized bank branch and submit a Sukanya yojana form for the same. The Sukanya Samriddhi yojana form can be collected in person at these branches or can be downloaded from the RBI website. The download link is here https://rbidocs.rbi.org.in/rdocs/content/pdfs/494SSAC110315_A3.pdf
This is a common Sukanya Samriddhi yojana form with which the parent/guardian can open the Sukanya Samriddhi account at post office or bank.
The Sukanya Samriddhi account opening form is very simple to fill and asks details like name of depositor and girl child, Date of birth, details of birth certificate, ID details of parent, Address proof, List of KYC documents etc.
Documents needed to open a Sukanya Samriddhi Account
Parents/guardians who wish to open a Sukanya Samriddhi Account for their daughter need to furnish the following documents.
1) Birth certificate – It is mandatory to provide proof of birth of girl child to the bank/post office authorities for opening the account. This birth certificate can be acquired from the hospital where the girl child was born. If the parent is not able to obtain the birth certificate, a certificate of domicile can be taken from the state government officials. If the girl child is already studying in school, a certificate of the date of birth can be obtained from the principal of the school. The birth certificate of the girl child should mention the correct name so that there are no discrepancies when withdrawing the money on maturity.
2)Address proof of parents/legal guardian – The parents/guardian who want to open this account for the girl child are required to provide proof of their residence. This proof could be any government validated ID card like Aadhar, passport, election card, driving license, ration card, utility bill, etc.
3) Identity proof of depositor – The depositor i.e. parents or legal guardians who wish to open a Sukanya Samriddhi Account for their daughter must provide a valid ID proof for getting the application processed. It could be any government issued ID card like passport, Aadhar card, driving license, voter ID card, etc.
The bank or post office will issue a passbook having details about the girl child and the account. This passbook should be updated everytime a deposit is made and it is also required at the time of withdrawal.
Transfer money online to the Sukanya Samriddhi Yojana account
Online money transfer to Sukanya Samriddhi Account can be done if the account is with bank branch and net banking facility is available. Some post offices have become computerised and the online transfer facility may be available there, you can enquire about the same from the branch.
To activate the online transfer to Sukanya Samriddhi account, visit your home branch and submit a letter to link your Sukanya Samridhi Yojana account with your transaction account. You should be able to do online transfer to Sukanya Samriddhi account within 24 hours. For it to work, you must have on-line banking facility enabled either through your personal computer or through your smart phone.
Disadvantages of Sukanya Samriddhi Account
1)Long lock in period: This scheme is not useful for short term investors. The deposited amount matures after 21 years from the date of opening or when the girl child gets married. As per the scheme rules, one has to deposit continuously for 14 years. Another drawback is that the account can only be opened for girls upto 10 years of age.
2) Restriction of maximum two accounts: Another restriction with this scheme is that an individual can open maximum two accounts. He/she is not eligible to open another account if there are three daughters except when there are twins or triplets.
3) Premature Withdrawal: Premature withdrawal is not allowed till the time girl attains an age of 18 years. One should see it as a long term instrument only.
4) Interest Rate could vary: Every year the government decides and announces the interest rate. It could remain same or different compared to last year. The Sukanya Samriddhi Scheme is not risky and provide moderate returns in the long term but returns can be low when compared to equity linked schemes.
Tax benefits of Sukanya Samriddhi Scheme
A contribution of up to Rs. 1.5 lakh in Sukanya Samriddhi Account per year qualifies for income tax deduction under Section 80C of Income Tax Act. The total maturity amount including interest of the Sukanya Samriddhi Scheme will be non taxable. It is the most important tax benefit on Sukanya Samridhi account. In terms of tax benefits, it is similar to Public Provident Fund which also qualifies for Section 80C benefits. It is a great investment option to save for a girl child’s future needs since the maturity amount is tax-free and goes directly in the hands of the girl child.
The Sukanya Samridhi scheme tax benefit was introduced in the Budget of 2015. Before that the maturity amount was tax-free but the interest earned per year was taxable. Now both maturity amount and interest earned are tax-free. Sukanya Samridhi Scheme scores better than PPF since its interest rate is higher.
Transfer of Sukanya Samriddhi Account from Post Office to Bank
The biggest drawback with Sukanya Samriddhi Account in Post Office is that you can’t deposit money using online banking if the Post Office is not connected with CBS facility. Therefore, many people transfer their account from Post office to bank. Also, when people change their location from one city to another, they might need to transfer the branch of post office. Here is the process to transfer Sukanya Samriddhi account from Post Office to Bank.
1) Visit the Post Office where you have Sukanya Samriddhi Account. Make sure to carry the passbook and KYC Documents along with you. If the girl child is managing the account on her own, then she is also required to visit.
2) Sukanya Samridhi yojana transfer from post office to bank can be requested by an application by mentioning the full address of Bank where you would be transferring. You will have to surrender the Passbook as well.
3) After proper verification of your documents and signature, Post Office will arrange to send the original documents like certified copy of the account, specimen signature, Account Opening Application etc. along with a cheque or DD for the outstanding account balance to the new Bank branch address.
4) Visit the Bank where you are transferring the Sukanya Samriddhi Account after they receive the documents from the Post office.
5) You will have to fill and submit the new account opening form of Sukanya Samriddhi Account at the Bank along with KYC Documents. After this process, your Sukanya Samridhi account transfer from post office to bank is complete.
Where can I find the Sukanya Samriddhi Account Calculator?
It is very easy to create your own Sukanya Samriddhi Yojana calculator. You can make a table in the form of data sheet with seven columns to calculate the yearly and monthly contribution.
The format for Sukanya Samriddhi Yojana calculator is explained below:
Column 1: Age of girl- Enter the age of your girl child as on today.
Column 2: Account age- Enter the number of years the account has been open for.
Column 3: Deposit date- Enter the date of deposit of the amount towards the Sukanya Samriddhi scheme.
Column 4: Deposit amount- In this column of Sukanya Samriddhi account calculator enter the amount deposited towards the account.
Column 5: Principal at year end – It will show the amount available in the account at the end of a financial year. It is calculated by adding the total amount at the year end and the amount to be deposited for next year.
Column 6: Total yearly interest- In this column, we will have the interest accrued under the prevailing interest rate.
Column 7: Total amount at financial year end- You can calculate the final amount that you will accumulate at the end of each year by using the formula: Principal Amount + Yearly Interest – E2 +F2
Given below is the representative Sukanya Samriddhi scheme calculator table:
|Age of girl child||Account age||Date of deposit||Deposit amount||Principal amount at year end||Total yearly interest||Total amount at year end|
Please note that interest calculation is compounded yearly. It affects your maturity amount when you do monthly deposits.
How to Check Sukanya Samriddhi Account Balance online
People who open a Sukanya Samriddhi account are given a passbook which is updated in every deposit and can be used to check the account balance. If you want to check the balance in your Sukanya Samriddhi account online, you can make use of the internet banking facility. Please note that in order to do that it is mandatory to link your internet banking account to your Sukanya Samriddhi account. If you have done that, follow the below mentioned steps to check your Sukanya Samriddhi Account Balance online without a passbook.
1) Login to your internet banking account using your username and password
2) After logging in, click on the Sukanya Samriddhi account option.
3) By using your bank account credentials login to your Sukanya Samriddhi account.
4) After you are able to log into your Sukanya Samriddhi account, you will find a tab of Account summary on the dashboard. Click on it.
5) Once you do that, the page will show the Sukanya Samriddhi yojana account balance online and the deposit you have made. If needed, you may take a printout of the e-passbook for your records.
How to Open Sukanya Samriddhi Account Online
There are many public and private sector banks under this scheme. Although the process of getting registered under Sukanya Samriddhi scheme might be bit different from one bank to another but in general the basic process remains the same. With the adoption of digital banking in large scale, more and more applicants want to open an account online while sitting in comfort. Here we have explained the process of opening and availing online Sukanya Samriddhi yojana.
1) Enter the official website of the bank where you are planning to open Sukanya Samriddhi account online. On the home page, click on the relevant tab that will provide you the details related to this scheme.
2) After clicking in the appropriate link a registration form will open on the screen. Here, you need enter all the details of the girl child along with the details of parents or the legal guardian.
3) To verify the filled in details, you will have to provide the Aadhar and PAN card details. Once done, you can submit the registration form by clicking the “Submit” button.
4) After the form has been submitted, you will have to make the first deposit in the account. It can be easily done via net banking. If your net banking facilities are not activated, you will have to go to the nearest branch and deposit the amount via draft, cheque or cash.
Once the transfer is completed via Sukanya Samriddhi account online, you will get the notification about the transfer on mobile via an SMS.
How to do Sukanya Samriddhi e-Payment
When this scheme was launched it was only available in post offices and Sukanya yojana online payment facility was not there. But now you can open SSY account in banks and can easily do sukanya samriddhi account online payment. You need to link your transaction account with Sukanya Samriddhi account by submitting an application at the local branch. Once that is approved, you can easily do Sukanya Samriddhi account online payment using internet banking.
From where can I get Sukanya Samriddhi Khata Form 1?
Sukanya Samriddhi Khata Form 1 is the application form for opening Sukanya Samriddhi account. It can be obtained from any of the authorized branches of post office and banks. It is also available online. Visit the link https://rbidocs.rbi.org.in/rdocs/content/pdfs/494SSAC110315_A3.pdf to download the form.
Can NRIs invest in Sukanya Samriddhi yojana?
The Sukanya Samriddhi scheme has generated a lot of interest in the NRI community abroad but as per the present rules of this scheme NRIs are not eligible to apply for Sukanya Samriddhi account for their daughters. With increasing participation of the NRI community in Indian society and politics, there could be a possibility that in future this scheme is made open for the NRIs. At present, NRIs are not permitted to open a Sukanya Samriddhi Account.
Which is a better investment, Sukanya A/C or an SIP plan?
Few financial experts believe that Sukanya scheme which is debt based is not the best way to save money for a long term. This could be true since equity-based SIP investment options can deliver higher returns. On the other hand, proponents of Sukanya Samriddhi scheme argue that this scheme is well targeted and gives a sense of purpose to the girl child. It helps a family save money for daughter’s education and marriage whereas the maturity amount of an SIP could get squandered.
This best approach would be to have a balanced portfolio in which SSY is used in combination with other investments, such as SIP of equity funds.
How can I claim Sukanya Samriddhi Yojana deposit?
The Sukanya Samriddhi account matures on completing 21 years from the date of opening or whenever the girl child gets married after attaining 18 years of age, whichever is earlier,
To meet important financial requirements like fees of higher education, withdrawal of up to 50 percent of the balance is allowed when the girl turns 18. In addition to the written application a documentary proof in the form of admission offer or a fee slip from the University or college would be required. The withdrawal amount will be approved after analysing the actual fees and other charges required at the time of admission.
How can I cash deposit in Sukanya Yojana?
Just like any other deposit account you can transfer money in sukanya Yojana account by below mentioned modes
1) By cash: If the amount is less than Rs 50000, you can deposit the amount by cash. You just need to visit the branch and fill the cash deposit voucher.
2) By transfer through cheque.
3) By online transfer: If you have internet banking enabled, you can transfer the money online. But to be able to do that first you have to link your Sukanya samriddhi account with your transaction account.
How does one open a Sukanya Samriddhi account in any bank?
There are many public and private sector banks authorized by Ministry of Finance for offering Sukanya Samriddhi Yojana (SSY) Accounts. An individual can open the account by submitting the application form and account opening documents at the authorized branch. The process can also be completed online.
Which is a better scheme to invest, PPF or Sukanya Samriddhi Yojana?
Lets compare both schemes on different parameters:
Tenure- Sukanya Samriddhi account has a tenure of 21 years with contributing period of 14 years. On the other hand, PPF has 15 year tenure and you can contribute for entire 15 years.
Interest Rate-For FY 2018-19 Sukanya Samriddhi Account offers an interest rate at 8.1% whereas PPF at 7.6%.
Tax Benefits-Both Sukanya Samriddhi Account and PPF offers tax benefit under Sec.80 C.
Liquidity- Sukanya Samriddhi account has less liquidity than PPF since you are not allowed to withdraw until girl attains the age of 18 years.
So when you compare Sukanya Samriddhi with PPF, you find that SSY offers better interest rate and is specific to the welfare of girl. On the other hand, PPF provides better liquidity and shorter tenure. An individual can choose a particular scheme basis his/her requirement.
Investment Comparison Tools
Comparison of SSY and PPF
|Feature||Sukanya Samriddhi Scheme||PPF|
|1||Objective||Welfare of the girl child, Tax benefit and assured returns||Assured return and tax benefit|
|2||Who is eligible to open the account||Girl child||Any Indian citizen|
|3||Minimum entry age limit||Starting from the birth of the girl child||No age limit|
|4||Maximum entry age limit||10 years||No age limit|
|5||Interest rate (2018-2019)||8.1%||7.60%|
|6||Minimum yearly investment||Rs.1000||Rs.500|
|7||Maximum yearly investment||Rs.1,50,000||Rs.1,50,000|
|8||Number of deposits allowed in a financial year:||No limit||12 deposits|
|9||Tenure of the scheme||14 years||15 years|
|10||Maturity period||21 years||15 years|
|11||Documents for account opening:||Application form, birth proof of the girl child. Residential and ID proof of parents/guardian||Account opening form, Address and ID proof|
|12||Payment Mode||Cash/Cheque/Demand Draft/ Online facility at few banks||Cash/Cheque/Demand Draft & Online
|13||Premature withdrawal||50% allowed when the girl turns 18. It must be used for girl’s education or marriage.||Only allowed in case account holder dies|
|14||Loan Facility||Not Available||Available from 3rd financial year till 6th year|
Comparison of SSY and LIC policy
|Sukanya Samriddhi Account||LIC of India Policy|
|It is a small deposit savings scheme for the welfare of girl child. You will simply deposit the money and get interest as per the latest interest rate applicable.||It is meant to provide life insurance in case of sudden death. You will also get some return on your investment.|
|The maturity period is 21 years from the date of opening.||It depends on the policy term chosen by the policy holder at the time of buying the policy.|
|There is no life cover in case of death of depositor.||In case of death, the family or nominee will get the sum assured value.|
|Premature withdrawal is allowed only after girl child attains 18 years of age||LIC policy can be surrendered after 3 years of premium payment.|
|The return on investment is amongst the best for SSY account and you can deposit till 14 years after opening.||LIC policies are not best in terms of return on investment.|
What are the modes of payment for SSY ?
There are many options to deposit the money in the Sukanya Samriddhi Account like cash, cheque, demand draft or online transfer. In case you are depositing via cheque or demand draft, you must write the name of the account holder and account number on the back of cheque. The cheque/ demand draft must be addressed to the manager or the postmaster. The date of deposit of cheque is considered as date of encashment.