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Sukanya Samriddhi Yojana interest rate 2022, scheme details, benefits and SSY calculator

[ecis2016.org] Get the complete details about Sukanya Samriddhi Yojana benefits, eligibility, documents required and the latest government guidelines.

The government has come up with many schemes for women and girls in India. The Sukanya Samriddhi Yojana is one such scheme for Indian citizens, which provides financial support to families for their daughter’s education and marriage, while allowing income tax exemption and higher interest rates. Launched under the ‘Beti Bachao Beti Padhao’ campaign, the Sukanya Samriddhi Yojana scheme focuses on safeguarding the future of daughters in every family. This central government scheme enables individuals to invest money as a lump sum amount, which can be later used for education or marriage of girls by their families.

Here is all you need to know about the Sukanya Yojana 2022, benefits, details, and other information.

Sukanya Samriddhi Yojana scheme details

Name of the scheme Sukanya Samriddhi Yojana (SSY)
Beneficiaries Every girl child
Launched by Central government
Maturity amount Based on invested amount
Tenure 21 years
Minimum investment Rs 250
Maximum investment Rs 1.5 lakhs

 

The Sukanya Samriddhi Yojana (SSY) is a savings scheme launched by the Government of India that allows a person to open an account before his/her daughter reaches 10 years of age and invest a minimum amount. The minimum amount that can be invested is Rs 250 and the maximum amount is Rs 1.5 lakhs. The investment helps individuals to ensure the financial security of their family by enabling them to fund their daughter’s education or marriage.

Here are some important facts about the scheme:

  • A regular amount should be deposited by parents under the PM Sukanya yojana scheme.
  • As per the earlier guidelines, it was mandatory to invest a minimum of Rs 250 per year to open the Sukanya Samriddhi Yojana. The account would default if the amount was not deposited. However, according to the new rules, the account will not be considered a default, even if the minimum amount is not deposited. Moreover, the interest will be paid at the applicable rate on the deposited amount till maturity.

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Sukanya Samriddhi Yojana interest rate

The government provides an interest rate of 7.6% on investments made under the Sukanya Samriddhi scheme. The interest rate of the scheme had been reduced from earlier 8.4% to 7.6%. Among the many post office schemes with interest rates, this scheme provides an attractive interest rate compared to other investment options such as Public Provident Fund with a 7.1% interest rate and fixed deposits with an interest rate ranging between 4.5% to 5.5%.

Sukanya Samriddhi Yojana: New government rules 2022

Here are some changes introduced by the government in the Sukanya Samriddhi Yojana scheme:

Opening and operation of the Sukanya Samriddhi Yojana account

As per the latest government rule, the girl child is not eligible to take over the operation of her account until she reaches 18 years of age. When the girl child attains 18 years of age, the guardian must submit the relevant documents in the post office.

If an individual is required to submit additional documents to open the account of more than two daughters, one is also required to provide an affidavit with the daughter’s birth certificate.

Closing premature accounts

The Sukanya Samridhi Account can be closed before the maturity period. This can be done in case of the death of the girl child or in a situation where the account holder must undertake treatment for a life-threatening illness or if the guardian has died.

Premature closure is allowed in the event of the death of the account holder upon producing a death certificate issued by the authority concerned. In such cases, the balance will be credited to the guardian of the girl child and the account will be closed.

The account can be closed in a period of five years after opening. In such cases, the interest rate will be charged as per the savings bank account.

Higher interest rate on default account

An account in the Sukanya Samridhi scheme is regarded as a default account when an individual fails to deposit a minimum amount of Rs 250 per year. As per the latest rule notified by the government on December 12, 2019, the same interest rate will be applicable on the amount deposited in such default account as fixed under this scheme.

Sukanya Samriddhi Yojana eligibility

  • A family can invest and get benefits under the Sukanya Samriddhi Yojana (SSY) 2022 for a maximum of two daughters.
  • A family with twin daughters can avail of the PM Kanya Yojana scheme benefits separately for each daughter. In such cases, three daughters will be eligible to get benefits.
  • The scheme benefits are available only for a daughter’s education and marriage and the account can be opened for girls below 10 years of age.
  • One girl child cannot have multiple sukanya samriddhi accounts

 

Sukanya Samriddhi Yojana 2022: Documents required

The following documents are required for opening the Sukanya Samriddhi Yojana account:

  • Application form for opening the account.
  • Birth certificate of the girl child.
  • Identity proofs and address proof of the depositor.
  • Medical certificates, if multiple children are born, in order of birth.
  • Any other documents, as requested by the post office/bank.

 

Sukanya Samriddhi Yojana benefits

The Sukanya Samriddhi Yojana scheme is a beneficial savings scheme, as it allows a family to open a Sukanya Samriddhi account with a minimal amount of Rs 250. The investments made under the scheme enable the family to save money for their daughters’ education and marriage, thus, ensuring a secure future. In the form of a regular deposit, a family can generate a corpus worth lakhs of rupees. The family will be eligible to utilise the maturity amount once the daughter attains the age of 21.

Currently, the Sukanya Samriddhi Yojana scheme offers an interest rate of 7.6% per annum. Considering an interest rate of 7.6% even in future, the deposited amount under the scheme is likely to double in around 9.4 years. Additionally, the beneficiaries are eligible for income tax exemption.

 

Sukanya Samriddhi Yojana tax benefits

The Sukanya Samriddhi scheme also allows individuals to get tax exemption on deposits made up to a maximum of Rs 1.5 lakhs in a financial year, under Section 80C of the Income Tax Act 1961. The interest rate earned and maturity amount in the Sukanya Samriddhi Account are exempted from tax.

Sukanya Samriddhi Yojana account opening rules

  • One can open the Sukanya Samriddhi account in any authorised post office branch or a commercial branch. Currently, over 25 banks are offering Sukanya Samriddhi Yojana accounts.
  • Moreover, an individual can open the Sukanya Samriddhi Yojana digital account with a simple online procedure using an Aadhar and PAN card. This account has a validity for one year.
  • The birth certificate of the daughter is also required.
  • Beneficiaries of the PM Kanya Yojana will be eligible to operate the account till the daughter reaches 21 years of age or till the time she gets married after attaining 18 years of age.
  • To be eligible for opening the Sukanya Samriddhi digital account, an individual should be 18 years of age.

Sukanya Samriddhi Yojana online form

Those interested in applying for the Sukanya Samriddhi Yojana can download the online form. One should fill the Sukanya Yojana online application form with relevant details and attach the mandatory documents. The online form, along with documents and the preferred investment amount, should be submitted at the post office or bank.

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IPPB app

The India Post Payments Bank or IPPB application has been introduced by the post office, which enables you to carry out smooth transactions using mobile phones. One can transfer money through a simple online process. So, one can transfer funds to different post office schemes, including the Sukanya Samriddhi Yojana scheme.

 

Sukanya Samriddhi Yojana account transfer

Beneficiaries have the choice of transferring the Sukanya Samriddhi Yojana account from one post office to another, or from one bank to another bank. This involves an easy procedure, as explained below.

  • First, one must visit the post office or bank for the Sukanya yojana account transfer. One is required to carry his updated passbook and KYC documents. It is not mandatory for the daughter to be present during the account transfer.
  • Approach the officer concerned and submit the documents requesting the transfer of the Sukanya Samridhi account.
  • The manager concerned will be responsible for closing the account in the old post office and providing the transfer request.
  • Visit the new post office or bank account with the transfer request and submit all documents, including the KYC documents such as identity proof and address identity.
  • The beneficiary of the PM Sukanya yojana will receive a new passbook, which mentions the account balance.
  • Once the procedure is completed, the beneficiary can operate the Sukanya Samriddhi Yojana account from the new account.

 

Sukanya Samriddhi Yojana yearly contribution

The Sukanya Samriddhi Yojana is run by the Indian post office and initiated by the government as a savings scheme for education and marriage of girls. The beneficiaries of the Sukanya Samriddhi Yojana scheme can visit the post office and make their contribution under this scheme. However, the post office, like many banks, has introduced a digital account facility, and one can deposit money in the Sukanya Samriddhi Yojana digital account. The Indian post office runs the Sukanya Samriddhi yojana and provides this facility, allowing people to transfer funds in a few clicks using their mobile phones. The digital facility proves to be highly convenient and saves time as one is not required to visit the post office.

 

What is Sukanya Samriddhi Yojana calculator?

The Sukanya Samriddhi Yojana calculator is a convenient digital tool that helps in calculation of the interest earned with the maturity amount in the Sukanya Samriddhi Yojana scheme. One needs to enter the amount of the first deposit, age of the girl child (maximum up to 10 years), duration, and starting year of the expense. The Sukanya Samriddhi Yojana calculator displays the total maturity amount.

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The interest applicable on the investment made under the Sukanya Samriddhi Yojana scheme is 7.6%. The government decides the method of calculating interest in the scheme. The calculation of interest is done on the lowest balance in the Pradhanmantri Sukanya Yojana account between the closing of the fifth day in a month.

The interest rates are subject to change every year as per the government guidelines. Also, the interest amount will be deposited in the account of the Sukanya Samriddhi Yojana scheme beneficiary at the end of the year. Further, the tax deduction as per Section 80C of the Income Tax Act will also be available on the amount deposited in this scheme.

 

How to use the Sukanya Samriddhi Yojana calculator?

If an individual fulfils the eligibility criteria of Sukanya Samriddhi Yojana, then go to the SSY calculator and input the age of the girl and investment amount. Make sure you keep a note of the maximum investment amount, which is Rs.1.5 lakh, and minimum investment amount, which is Rs. 250.

The calculation is based on the formula:

A = P (1+r/n)^nt

Where,

A is the compound interest

P is the principal amount

r is the interest rate for the scheme

n is the number of times the interest compounds in one year

t is the total number of years

Depending on the details provided by you, the Sukanya Samriddhi Yojana calculator will compute the amount an individual is eligible to receive upon maturity. The maturity period for the SSY scheme is 21 years.

One should make a minimum of single contribution per year the completion of 14 years. The SSY calculator will consider that the same amount of deposit is made annually. One is not required to make deposits between year 15 and year 21. However, beneficiaries will get an interest on the earlier contributions made during this period. The Sukanya Samriddhi Yojana calculator also counts the interest generated when providing the final amount.

Example:

Let us assume a yearly deposit of Rs 50,000 is made into the SSY scheme. The interest rate applicable is 7.6%. For a yearly deposit of Rs 50,000 for 14 years, the Sukanya Samriddhi yojana calculator will compute the interest generated as Rs 14,14,196 and the maturity amount as Rs 21,14,196.

Year Financial Year Interest rate Deposit (in Rs) made in the year Interest generated (in Rs) during the year Balance amount (in Rs) at the end of the year
1 2020-2021 7.60% 50,000 3,800 53,800
2 2021-2022 7.60% 50,000 7,889 1,11,689

 

3 2022-2023 7.60% 50,000 12,288 1,73,977
4 2023-2024 7.60% 50,000 17,022 2,40,999
5 2024-2025 7.60% 50,000 22,116 3,13,115
6 2025-2026 7.60% 50,000 27,597 3,90,712
7 2026-2027 7.60% 50,000 33,494 4,74,206
8 2027-2028 7.60% 50,000 39,840 5,64,046
9 2028-2029 7.60% 50,000 46,667 6,60,713
10 2029-2030 7.60% 50,000 54,014 7,64,728
11 2030-2031 7.60% 50,000 61,919 8,76,647
12 2031-2032 7.60% 50,000 70,425 9,97,072
13 2032-2033 7.60% 50,000 79,577 11,26,650
14 2033-2034 7.60% 50,000 89,425 12,66,075
15 2034-2035 7.60% 50,000 96,222 13,62,297
16 2035-2036 7.60% 0 1,03,535 14,65,831
17 2036-2037 7.60% 0 1,11, 403 15,77,234
18 2037-2038 7.60% 0 1,19,870 16,97,104
19 2038-2039 7.60% 0 1,28,980 18,26,084
20 2039-2040 7.60% 0 1,38,782 19,64,867
21 2040-2041 7.60% 0 1,49,330 21,14,196

Sukanya Samriddhi Yojana: How to deposit money in account?

A beneficiary can deposit the amount in the Pradhanmantri Sukanya yojana account through cash, demand draft or through electronic transfer in a post office or bank.

 

Sukanya Samriddhi Yojana withdrawal rules

The Sukanya Samriddhi Yojana scheme beneficiaries can withdraw 50% of the amount invested in the scheme once the daughter reaches the age of 18 years for her higher education. The withdrawal can be made in one go or in instalments.

The maturity of the PM Sukanya Yojana account is not related to the age of the girl child. However, the account holder is eligible to withdraw the amount only after the girl turns 18.

 

Sukanya Samriddhi Yojana: How to check an account balance?

The beneficiaries investing in the Sukanya Samriddhi Yojana can obtain the passbook online and offline mode. Moreover, there is a provision to check the account balance under the Sukanya Samriddhi Yojana scheme. One can open an account in any bank offering Sukanya Samriddhi Yojana accounts.

After opening the account, one can check the account balance under the Pradhanmantri Sukanya yojana scheme through the passbook. The balance can be checked online as per the procedure explained below:

Step 1: Request the bank to provide you with the Sukanya Yojana login details for your account. One should note that there are only a few banks that provide the login credentials.

Step 2: Once the login credentials are obtained, the beneficiary will be required to visit the bank’s internet banking website and sign into the account.

Step 3: On the homepage, click on the Confirm Balance option. The amount available under the Sukanya Samriddhi Account will be displayed on the screen.

 

Sukanya Samriddhi Yojana: How to revive default account?

The beneficiary of the Sukanya Samriddhi scheme is required to invest a minimum amount of Rs 250 in the account. If the person fails to invest this amount, he or she is said to be a defaulter and the account default. The process of account revival can be done for 15 years from the date of opening the account.

To revive the account opened under the Pradhanmantri Sukanya Yojana scheme, one is required to make the minimum investment of Rs 250 for all the years during which the investment was not made. Also, a penalty of Rs 50 per annum must be paid.

 

Sukanya Samriddhi Yojana account reopening procedure

If the beneficiary fails to deposit the minimum amount of Rs 250 per year, the Sukanya Samriddhi Yojana account will be closed. However, it is possible to reopen the closed account by following the procedure explained below:

The beneficiary is required to visit the post office or bank. The individual must fill and submit the account revival form along with the outstanding amount.

For example, if the minimum amount, i.e., Rs 250, was not deposited for two years, then, a total of Rs 500 with a penalty of Rs 50 per year, that is Rs 100 for two years, must be paid. Hence, the amount that is to be paid to reopen the account after 2 years, is Rs 600.

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Sukanya Samriddhi Yojana (SSY) guidelines, terms and conditions

  • The Sukanya Samriddhi Yojana account must be opened in the name of the daughter.
  • A maximum of two accounts can be opened per family.
  • One can make an investment under the scheme for up to 15 years from the date of opening the account.
  • The account must be opened before the daughter reaches 10 years of age.
  • The Sukanya Samriddhi Yojana account is operated by the parents till the girl attains 18 years.
  • The account can be closed, in case of death of the account holder, or if the individual becomes a non-resident Indian (NRI).
  • It is necessary to provide important documents such as Aadhar number and PAN number for opening the account.
  • A minimum investment of Rs 250 per annum should be made in the account. Otherwise, the account will be considered to be in default.
  • An interest rate of 7.6% is applicable under the Sukanya Samriddhi Yojana scheme. The interest rate is decided by the government on a quarterly basis.
  • Upon completion of the scheme or if the girl becomes a non-citizen or NRI, then, interest is not given in this situation.
  • In India, one is eligible to avail of loan from a PPF account. One cannot avail the Sukanya Samriddhi Yojana loan like PPF schemes. However, if the girl child attains 18 years of age, withdrawal is allowed up to 50%, and the amount can be used for her education and marriage.
  • Only one account for a girl child in a family can be opened under the PM Kanya yojana.

 

FAQs

What is Sukanya Samriddhi Yojana deposit limit?

A maximum investment of Rs 1.5 lakhs can be made under the Sukanya Samridhi scheme.

How many years you need to pay for Sukanya Samriddhi Yojana?

Investments under the Sukanya Samriddhi Yojana scheme can be made up to 15 years from the date of opening the account.

Source: https://ecis2016.org/.
Copyright belongs to: ecis2016.org

Debora Berti

Università degli Studi di Firenze, IT

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