Sukanya Samriddhi Account | Details, Features, Transfer, Interest Rate, Maturity

This article gives detail information on Sukanya Samriddhi Account, introduction of Sukanya Samriddhi Account, Salient features including Tax Rebate in Sukanya Samriddhi Account, Minimum Amount in Sukanya Samriddhi Account, Interest rates revisions in Sukanya Samriddhi Account, Tax benefits of Sukanya Samriddhi Account, Reception of Sukanya Samriddhi Account, SSY Closure on maturity Rules 2016, Transfer of Sukanya Samriddhi Account.

Introduction to Sukanya Samriddhi Account

Sukanya Samriddhi Account (Girl Child Prosperity Account) is a Government of India backed saving scheme targeted at the parents of girl children. The scheme encourages parents to build a fund for the future education and marriage expenses for their female child.

The scheme was launched by Prime Minister Narendra Modi on 22 January 2015 as a part of the Beti Bachao, Beti Padhao campaign. The scheme currently provides an interest rate of 7.6% (for Apr-July 2020 quarter) and tax benefits. The account can be opened at any India Post office or branch of authorised commercial banks.

The Sukanya Samriddhi Account Rules, 2016 was rescinded on 12 December 2019 and the new Sukanya Samriddhi Account Scheme, 2019 was introduced.


What is Sukanya Samriddhi Account?

The scheme was launched by Prime Minister Narendra Modi on 22 January 2015 in Panipat, Haryana. The accounts can be opened at any India Post office or a branch of some authorised commercial banks. Initially, the interest rate was set at 9.1% but later revised to 9.2% in late March 2015 for FY2015-16. Interest Rate have been revised for FY 2016-17 to 8.6%.

The account can be opened anytime between the birth of a girl child and the time she attains 10 years age by the parent/guardian. Only one account is allowed per child. Parents can open a maximum of two accounts for each of their children (exception allowed for twins and triplets). The account can be transferred to anywhere in India.

A minimum of Rs.250 must be deposited in the account initially. Thereafter, any amount in multiples of Rs 100 can be deposited. However, the maximum deposit limit is Rs.150,000. If the minimum deposit of Rs.250, (initially which was 1000) is not made in a year, a fine of Rs.50 will be put on.

The girl can operate her account after she reaches the age of 10. The account allows 50% withdrawal at the age of 18 for higher education purposes. The account reaches maturity after time period of 21 years from date of opening it. Deposits in the account can be made till the completion of 15 years, from the date of the opening of the account. After this period the account will earn only applicable rate of interest. If the account is not closed, then it will not earn interest at the prevailing rate. If the girl is over 18 and married, normal closure is allowed.

Salient features including Tax Rebate in Sukanya Samriddhi Account

  • A legal Guardian/Natural Guardian can open account in the name of Girl Child.

  • A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different Girl children.

  • Account can be opened up to age of 10 years only from the date of birth.

  • If minimum Rs 250/- is not deposited in a financial year, account will become discontinued and can be revived with a penalty of Rs 50/- per year with minimum amount required for deposit for that year.

  • Deposits may be made in the account till the completion of a period of fifteen years from the date of opening of the account

  • Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.

  • Account can be closed after completion of 21 years.

  • Normal Premature closure will be allowed after completion of 18 years on the occasion of marriage (1 month before and 3 month from date of marriage)

  • Online Deposit facility is available through Intra Operable Netbanking and IPPB Saving Account.


Minimum Amount in Sukanya Samriddhi Account

Minimum INR. 250/-and Maximum INR. 1,50,000/- in a financial year. Subsequent deposit in multiple of INR 50/- Deposits can be made in lump-sum No limit on number of deposits either in a month or in a Financial year


Interest rates revisions in Sukanya Samriddhi Account

Serial Number Financial Year Date Range Interest Rate Minimum Investment Maximum Investment
1 2014-15 1 April 2014 to 31 March 2015 9.1% 1,000 1,50,000
2 2015-16 1 April 2015 to 31 March 2016 9.2% 1,000 1,50,000
3 2016-17 1 April 2016 to 30 Sep 2016 8.6% 1,000 1,50,000
4 2016-17 1 Oct 2016 to 31 Mar 2017 8.5% 1,000 1,50,000
5 2017-18 1 April 2017 to 30 June 2017 8.4% 1,000 1,50,000
6 2017-18 1 July 2017 to 31 December 2017 8.3% 1,000 1,50,000
7 2017-18 1 January 2018 to 31 March 2018 8.1% 1,000 1,50,000
8 2018-19 1 April 2018 to 30 September 2018 8.1% 250 1,50,000
9 2018-19 1 October 2018 to 31 March 2019 8.5% 250 1,50,000
10 2019-20 1 April 2019 to 30 June 2019 8.5% 250 1,50,000
11 2019-20 1 July 2019 to 31 March 2020 8.4% 250 1,50,000
12 2020-21 1 April 2020 to 30 June 2020 7.6% 250 1,50,000


Tax benefits of Sukanya Samriddhi Account

At the time of launch, only the deposits in the account were eligible for tax deduction under Section 80C of the Income Tax Act, which is Rs.150,000 in 2015-16. However, Finance Minister Arun Jaitley announced, during the 2015 Union Budget, tax exemption on the interest from the account and on withdrawal from the fund after maturity, making the tax benefits similar to that of the Public Provident Fund. These changes were applied retrospectively from 1 April 2015. These benefits will be reassessed annually.


Reception of Sukanya Samriddhi Account

By mid-March 2015, within 2 months of launch, 1,80,000 accounts had been opened under the scheme. Karnataka, Tamil Nadu and Andhra Pradesh reported highest number of new accounts. The number of accounts opened up to October, 2015 under Sukanya Samriddhi Yojana across the country is 76,19,668. The impact is that 76,19,668 girl children got Rs.28.38 billion (US$400 million) deposited in their name.


SSY Closure on maturity Rules 2016

(1) The Account shall mature on completion of a period of twenty-one years from the date of its opening: Provided that the final closure in the Account may be permitted before completion of such period of twenty one years, if the account holder, on an application, makes a request for such premature closure for reasons of intended marriage of the Account holder and on furnishing of age proof confirming that the applicant will not be less than eighteen years of age on the date of marriage:

Provided that no such premature closure shall be made before one month preceding the date of the marriage or after three months from the date of such marriage.

(2) On maturity, the balance including interest outstanding in the Account shall be payable to the Account holder, on an application by the Account holder for closure of the Account, and on furnishing documentary proof of her identity, residence and citizenship.

(3) No interest shall be payable once the Account completes twenty-one years from the date of its opening.


Transfer of Sukanya Samriddhi Account

(1) The Account may be transferred anywhere in India and from or to post offices and from or to Banks and between post office and Bank, free of cost on furnishing of proof of shifting of residence of either the guardian or the Account holder and otherwise, on payment of a fees of one hundred rupees to the post office or the Bank to which the transfer is made.

(2) The process of transfer of the account shall be effected electronically if the post office or the Bank concerned, has access to the facility of CBS.

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