Post Office Savings Scheme(SSY) For Girl Child In India

Post Office Sukanya Samriddhi Yojana is a savings scheme offered by the government of India. This scheme is specially designed for a family's female child and is a part of the "Beti Bachao – Beti Padhao Yojana". The Post Office Sukanya Samriddhi Yojana is meant for parents of female children to help them secure their daughter's future in the best way. Both the guardian and parent of the girl child can unlock it until she reaches the age of ten. This initiative of the government is an initiative to support the female child, and thus this scheme has received a positive response.

Sukanya Samriddhi Account at the Post Office: Key Features

You need to know about the key features of the Sukanya Samriddhi Account:

• Each family can only have two Post Office Sukanya Yojana accounts, however, if there are twins or triplets, then in such a case three accounts can be opened. The legal guardians or the parents are allowed to create the account for their girl child in case they are under the age of ten.
• A Sukanya Samriddhi Yojana in the Post Office can be opened for as little as Rs. 250 per year and as much as Rs.1.5 lakh per year. Cash and/or checks are accepted forms of payment.
• An SSY account is valid for 21 years or until the girl child turns 18, whichever comes first. A Post Office Sukanya Samriddhi account can remain open for up to 21 years after it is first opened, and once this period has passed, it does not earn interest.
• Only a girl child who is an Indian resident is eligible for this program. A non-resident Indian female child is not permitted to open an SSY account in her name.
• Post Office Sukanya Samriddhi Yojana allows for partial withdrawals once a girl child turns 18. After that, a girl can withdraw 50% of her funds for further education or marriage.
• There is a minimum annual contribution of Rs. 250 required to keep the account alive for at least 14 years. If this criterion cannot be met within one year, the account will be deleted, and it may be reopened only by paying a fee of Rs.50 along with the minimum deposit.

Highlights of Sukanya Samridhi Yojana

Check out the important details of the SSY Scheme in the below mentioned table.

Interest Rates	8% per year
Maturity Period or Age Limit	Till a female kid marries after turning 18 years old, or 21 years.
Period of Investment	account starting date for up to 15 years
Deposit Minimum	Rs 250
Deposit Maximum	Rs 1.5 lakhs
Eligibility	A girl's SSY can be opened in her name by her parents or legal guardian if she is under 10 years old.
Income Tax Refund	Section 80C of the Income Tax Act of 1961 section 80C eligibility (annual maximum of Rs. 1.5 lakhs)

Eligibility for Sukanya Samriddhi Account

The eligibility criteria for opening a Sukanya Samriddhi Account are listed below: 

• SSY accounts can only be opened by parents or legal guardians of a girl child.
• The eligible girl child must be under the age of 10 at the time of account opening.
• Each girl child is limited to one SSY account.
• Each family is permitted a maximum of two SSY accounts intended for individual girl children.
• PAN and Aadhaar are now required for SSY accounts.

Sukanya Samriddhi Yojana Important Details

According to the Finance Ministry's most recent announcement, to register a new SSY account, you must enter your Aadhaar number and PAN. If you have not yet received an Aadhaar, you must present documentation indicating your enrollment in Aadhaar at the time of account opening, such as an enrollment ID, and deliver the Aadhaar number to the accounts office within six months of the account starting date.

• If you currently have a Sukanya Samriddhi Yojana account but have not yet entered your Aadhaar number, you must do so within six months starting on April 1, 2023. Additionally, if you did not provide your PAN upon account establishment, you must do so within two months after the earliest of the following occurrences, i.e., the date on which any of the following events occurs:
  • The account has a balance of more than Rs. 50,000 at all times.
  • In any financial year, the total amount of all credits in the account surpasses Rs.
  • The total withdrawals and transactions from the account for a month surpass Rs. 10,000.
• Your account will become inactive until your Aadhaar number and/or PAN are submitted to the accounts office if you fail to do so within the prescribed time frames of 6 months and 2 months, respectively.

Therefore, a family with two girl children can open one SSY account for each child.

Documents Required for Sukanya Samriddhi Yojana

To open a Sukanya Samriddhi Yojana (SSY) account, it's important to have all the necessary documents ready. These need to be submitted in person to the bank branch or post office where you have applied for the SSY account. Let's take a look at what these documents are:

Birth Certificate: The birth certificate of the girl child is required. This serves as the primary proof of eligibility based on the age criterion of the scheme.

Guardian's Identity and Address Proof: These could be any government-issued documents that contain the details of the girl child's parent or legal guardian.

Medical Certificate: This document is specifically required if there are multiple girl children born in a single order of birth. It acts as proof to allow the opening of more than two SSY accounts in one family.

Other KYC documents: Submitting an Aadhaar card, Voters ID, or other valid KYC documents is necessary for verification purposes.

Additional Documents: There may be other document requirements as per the specific policies of the post office or bank. It is advisable to inquire about these beforehand to ensure a smooth application process.

How To Open a Sukanya Samriddhi Account In a Post Office?

The government-aided Sukanya Samriddhi plan which was started to encourage a female child's education has already garnered a lot of praise. However many are still unaware of the plan, you can visit the nearest post office to open this type of account. Here's how you can do it:

First, download the form from the government website and then fill it in correctly.

Carry all essential documentation, including photographs of the female child and her parent/guardian along with proof of identification like an Aadhar card and birth certificate.

All of the aforementioned, as well as the application form, should be submitted to the post office.

Benefits of Sukanya Samriddhi Account

The SSY scheme focuses on securing a girl child's future. The important benefits are listed below:

Educational Support: Account holders can withdraw 50% of the previous year's balance to cover educational expenses, ensuring continuous learning support.

Easy Transfer: The SSY account can be conveniently transferred from a bank to a post office, or vice versa, anywhere in India, allowing nationwide accessibility.

Attractive Interest Rates: The SSY scheme offers high interest rates at 8% p.a., outperforming many other government schemes.

Affordable Payments: The minimum annual balance requirement is only Rs. 250. The scheme allows flexibility with deposits up to Rs. 1.5 lakh per fiscal year. A nominal penalty of Rs. 50 is levied on missed payments, ensuring the account remains active.

Assured Returns: As a government-backed scheme, SSY guarantees returns upon maturity, securing the future financial stability of your girl child.

Tax Benefits: Up to Rs. 1.5 lakh in yearly tax deductions are offered by SSY under Section 80C.

The Benefit of Compounding: Sukanya Samriddhi Yojana (SSY), which offers the benefit of yearly compounding, is a fantastic long-term investment strategy. Therefore, even modest investments will provide bigger returns over time.

Deposit Caps for Sukanya Samriddhi Yojana

The Sukanya Samriddhi Account has a minimum yearly contribution of Rs. 250 and a maximum annual commitment of Rs. 1.5 lakh. For up to 15 years after the account is opened, you must invest at least the required amount each year. The account will then continue to collect interest until it matures.

Sukanya Samriddhi Yojana - How to Invest?

Samriddhi Sukanya Investments in Yojana can be made at your neighbourhood post office or at authorised locations of affiliated public and commercial banks. You must provide KYC papers such as a passport and an Aadhaar card, as well as the necessary paperwork and an initial payment via cheque/draft.

Investors must complete the Sukanya Samriddhi Yojana (SSY) Application Form, which is available at a nearby post office or participating public/private sector bank. The SSY New Account Application Form is also available on the websites listed below:

• The Reserve Bank of India's website
• Individual websites of public sector banks (SBI, PNB, BoB, and so forth).
• India Post Official Website
• Participating private sector banks' websites (for example, ICICI Bank, Axis Bank, and HDFC Bank)

While the SSY application form can be obtained from a variety of sources, the fields on the form will be the same regardless of where you obtain it.

Sukanya Samriddhi Yojana Account Transfer

One of the main advantages of the SSY Account is that it may be simply transferred from one area of India to another. You can easily move this tax-saving deposit account for the benefit of a female child from one India Post Office to another or from one approved bank branch to another under current guidelines.

To transfer your SSY account from a post office, fill out and submit the transfer request form to the Post Master of the India Post Office, where your account is now situated. Similar transfer papers are accessible both online and offline if you wish to move a deposit from one specified bank to another.

Calculator for Sukanya Samriddhi Yojana

The value of any investment can only be measured by how much it rises over time. The sample computation below shows the large profits you may obtain by contributing to the Sukanya Samriddhi Yojana.

Consider the following scenario:

The girl is born in 2020, and her parents opened an SSY account for her that year. After 21 years, the account will mature, and the female kid will receive the full maturity sum.

• 1 lakh in annual investments
• 15-year investment period
• After 15 years, the total amount spent is Rs. 15 lakh SSY. The one-year interest rate is 7.6%.
• Maturity Value after 21 years = Rs. 43,95,380.96 in interest after 21 years = Rs. 3,10,454.12

Withdrawal rules of Sukanya Samriddhi Yojana Account

Withdrawing funds from a Sukanya Samriddhi Yojana (SSY) account requires adherence to specific guidelines to ensure proper utilisation of the savings. To initiate a withdrawal, follow these steps:

Fill out the Withdrawal Form: To begin the withdrawal process, you must complete the withdrawal form provided by the bank or Post Office where the SSY account is maintained. Along with the form, present the SSY account passbook for verification.

Eligibility for Premature Withdrawal: Premature withdrawals can be made under certain conditions, such as for marriage expenses or higher education when the girl child turns 18 years old.

Education Expenses Withdrawal: After the girl child reaches 18 years of age or passes the 10th standard, up to 50% of the previous financial year's balance can be withdrawn to cover educational expenses. You must provide documentary proof, like a confirmed admission offer or a fee slip, along with the withdrawal application.

Frequency of Withdrawal: Only one withdrawal can be made in a year, either in a lump sum or in up to five instalments, based on the actual requirement of fees or charges. 

It's essential to adhere to these withdrawal rules to ensure the SSY scheme fulfils its purpose of securing the girl child's future. By utilising the funds appropriately, you can support her education and other significant life events.

Premature Conditions of Closing the Account

Only a girl kid can complete a premature closure once she reaches the age of 18 to pay for her wedding. However, under certain circumstances, and five years after the account's setting up, it may be prematurely closed under the following circumstances, the account may be closed, and the corresponding sum may be withdrawn:

Account Closure Due to the Accountholder's Untimely Death

If the registered female child dies, the parents or legal guardians are entitled to the account's final balance as well as any earned interest. The funds will be sent promptly to the account's nominee. In addition, the parents or legal guardians must submit essential documentation certifying the account holder's death that the relevant authorities have officially confirmed.

Account Closure Due to Inability to Continue the Account

The Sukanya Samriddhi Account may be liquidated prematurely if the central government issues a directive on the depository's inability to carry forward the account. The closure might also be undertaken if the depositor's contribution to the account is creating financial difficulty. 

Note: It should be remembered that the Sukanya Samriddhi Yojana account would only be closed in exceptional instances, such as life-threatening diseases or medical emergencies.

Furthermore, sufficient clearance from the appropriate authorities must be obtained to effectuate the account closure and settlement. Full application and paperwork are needed for such closure. You are required to visit the relevant Post Office with the appropriate application form and passbook to request an early account closure.

Conclusion

A Post Office Sukanya Samriddhi Yojana account offers several benefits, which is why it's one of the most popular savings options. Every year, beginning in 2020-21, a 7.6% annual interest rate will be compounded and credited to the account.

The interest will compound at current rates if the money is not withdrawn after the 21-year maturity period. If the depositor changes his or her address, the SSY account can be transferred to another Post Office. Alternatively, the account can be moved to any approved post office in the new location.

FAQs

1. What is the Sukanya Samriddhi Yojana scheme? 

SSY is a government-backed savings scheme in India. This scheme encourages parents to save funds for the future education and marriage expenses of their female child.

2. Who is eligible to open an SSY account? 

Parents or legal guardians can open a Sukanya Samriddhi Yojana account for a girl child before she turns 10. A family can open a maximum of two Sukanya Samriddhi Yojana accounts for two different girl children. In the case of twin or triplet girls as the second birth, an additional account can be opened.

3. Where can an SSY account be opened? 

It can be opened at any authorised commercial bank or India Post branch across the country.

4. What is the minimum and maximum deposit amount that can be in an SSY account? 

The minimum deposit required for an SSY account is Rs. 250, and the maximum amount that can be deposited in one financial year is Rs. 1.5 lakh.

5. What happens to the SSY account when the child turns 18? 

Once the girl child turns 18, partial withdrawal of up to 50% of the balance at the end of the preceding financial year is allowed for the purpose of higher education. However, the account will reach maturity and be ready for full withdrawal when the girl turns 21.

Also Read:

Why Does Your Child Need the Best Child Education Plan In India?

Things You Should Know About Child Life Insurance Plans

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.