Pradhanmantri Sukanya Samriddhi Yojana(PM-SSY)
The Pradhanmantri Sukanya Samriddhi Yojana was launched by the Government of India on 21st January 2015, as part of the “Beti Bachao Beti Padhao” Campaign.
This scheme encourages parents to save and build a fund for their daughters’ bright future in terms of higher education & extra-curricular activities.
A key benefit of the scheme offers you yearly compound interest on investment value along with tax benefits under sec 80C.
Here we will cover the SSY Scheme in depth:
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Features
| Feature | Terms and Conditions |
|---|---|
| Interest rates | Rate of interest 7.6% Per Annum(with effect from 01-10-2020 ). Calculated on yearly basis, Yearly compounded. |
| Deposit Limit | Minimum INR. 250/-and Maximum INR. 1,50,000/– in a financial year. Subsequent deposits in multiples of INR 50/- Deposits can be made lump-sum. No limit on the number of deposits either in a month or in a Financial year. |
| Eligibility | SSY account can be opened up to the age of 10 years only from the date of birth. A legal guardian can open an account in the name of a Girl child. |
| Maturity tenure | The account can be closed after the completion of 21 years. Deposits may be made in the account till the completion of a period of fifteen years from the date of opening of the account. after that account will continue to earn interest till maturity. |
| Premature withdrawals & closure | SSY accounts can be opened up to the age of 10 years only from the date of birth. A legal guardian can open an account in the name of a Girl child. |
| Tax Benefit | Under Section 80 C of the Income Tax Act, 1961, individuals can claim tax exemption up to Rs 1.5 Lakh from the amount contributed to the Sukanya Samriddhi account. intrigue that accumulates against this record which gets exacerbated yearly is likewise excluded from charge |
Extra Important Features
- Transfer facility is available: SSY account can be transferred from one post office to a bank and vice versa. This is a facility only via off-line.
- A legal Guardian/Biological parent can open an account in the name of the Girl Child. A guardian can open only one account in the name of one girl child and a maximum* of two accounts in the name of two different Girl children.
- There is No nomination facility in this plan, in case of an unfortunate event such as a girl child’s death, the account will be shut and the lumpsum amount as on the given date with interest will be credited to the parent or legitimate watchmen of the record holder.
- Online payment facility is available for Post office through Operable Net-banking and IPPB Saving Account. However, banks also are providing online facilities for depositing the amount.
- NRIs are not allowed to open an account.
Also Read Atal Pension Yojana [APY] in Post Office | Features & Benefits | Application Form
New Rules of Pradhanmantri Sukanya Samriddhi Account
This para will discuss five major changes introduced in the scheme in the year 2020, please refer to the below points:
- SSY account can’t be operated by the girl child till she attains the age of 18 years.
- Premature closure is allowed as per the new rules in case of the death of the girl child or if the account holder is taking medical treatment for life-threatening diseases or the death of the guardian.
- The scheme will provide the highest interest rate till the maturity of the inactive accounts as well. For example, if one fails to pay min deposit of 250/- yearly then one is entitled to the same interest rate till the maturity of the account as compared to other schemes if the installment is not paid then normal saving bank interest gets accrued instead of scheme interest till it regularised by paying 50/- as penalty.
- SSY account can be opened for more than two daughters provided one provides the birth certificate of the girl with the affidavit.
Also Read SBI Bank Pension Plan – ADS | NPS | APY | Special Term Deposit
Interest Rate of Pradhanmantri Sukanya Samriddhi Yojana
| Time Interval | Interest (% Yearly) |
|---|---|
| Q4- April to June 2023 | 8.2 |
| Q4- Jan to March 2021 | 7.6 |
| Q3- October to December 2020 | 7.6 |
| Q2- July to September 2020 | 7.6 |
| Q1- April to June 2020 | 7.6 |
| Q4- Jan to March 2019 | 8.4 |
| Q3- Oct to Dec 2019 | 8.4 |
| Q2- Jul to Sep 2019 | 8.4 |
| Q1- Apr to Jun 2019 | 8.5 |
| Q4- Jan to March 2019 | 8.5 |
| Q3- Oct to Dec 2018 | 8.5 |
| Q2- Jul to Sep 2018 | 8.1 |
| Q1- Apr to Jun 2018 | 8.1 |
| Q4- Jan to March 2018 | 8.1 |
| Q3- Oct to Dec 2017 | 8.3 |
| Q2- Jul to Sep 2017 | 8.3 |
| Q1- Apr to Jun 2017 | 8.4 |
Benefits of Pradhanmantri Sukanya Samriddhi Yojana
- Attractive interest rates – SSY offers the highest rate of interest as compared to other government-backed tax saving schemes even during the inactive state.
- Transfer facility – SSY accounts can be transferred from one post office to a bank and vice versa using offline ways.
- SSY Account can be opened for more than two girls in some special conditions that can be:
The girl child is born after the birth of twin or triplet girls, third account cannot be opened.
The girl child is born before the birth of twin or triplet girls, or triplets are born at first then a third account can be opened. - Flexibility with security – SSY is an Indian government investment plan. which provides Safety & Security of your amount without any risk. The scheme is flexible and provides multiple options to invest with a minimum deposit of Rs. 250 in a year (max. Rs. 1.5 lahks per annum).
- Tax benefit – Investment under SSY scheme qualifies for the benefit of Section 80C (up to Rs. 1.5 lahks annually) of the Income Tax Act, 1961 from 1.4.2007.
Authorized Banks List for Opening Account
- ICICI Bank
- HDFC Bank
- Axis Bank
- Punjab National Bank
- Canara Bank
- Union Bank of India
- IDBI Bank
- Canara bank
- Indian Bank
- Dena Bank
- State Bank of India with all subsidiary banks like SBM,SBH
- Bank of Maharashtra
- Punjab & Sind Bank
- Indian Overseas Bank
- UCO Bank
- Bank of India
- Bank of Baroda
- Vijaya Bank
- Central Bank of India
Also Read Government of India Pension Scheme for Old Age or Parents – Guaranteed Pension
Documents Required
- SSY Account opening form.
- Birth Certificate of the girl child.
- Two or Three photo of the parent/ legal guardian of the girl child.
- Address evidence of the mother or father of the beneficiary like Adhar card, Passport, Voter ID card, Telephone invoice etc.
- Id proof of the guardian or parents of the beneficiary like PAN card, Ration card, Driving license etc.
How to Open a Pradhanmantri Sukanya Samriddhi Yojana Account?
Post Office
In this paragraph, I’m going to discuss How to apply for an SSY account.
It’s an offline process to apply for the SSY account.
Kindly follow the below steps to open an account.
- You can download the application form/opening form and fill in the required necessary fields.
- You should carry all necessary documents like Birth Certificate, Photograph, Address and ID proof.
- One is required to provide cheque/demand draft details along with the amount on the application form.
- Submit the form at the designated branch of the Indian post office.
Download Application Form
| Opening of an account |
| Account Transfer |
| Closure |
State bank of India
SBI permits the launch of an SSY account in a simple and bother-freeway.
People who don’t have an account with SBI can also open an SSY account.
Can follow the below steps to open an account.
- You can download the application form and fill required fields.
- You should attach all required documents like Birth Certificate, Photograph, Address and ID proof along with the application form.
- One is required to provide cheque/demand draft/Case details along with amount on application form.
- Submit the form at the designated branch of State Bank of India.
- You can download the “Linking to account to use the name” form and submit the form at the designated branch of the State Bank of India for, Further online transactions.
Also Read National Pension System: Secure Your Retirement without Stress
Download Application Form
Other banks like HDFC,ICICI etc.
One should follow the same process as SBI to open an account from other private sector banks. You can download the application form from the bank’s website.
Pradhanmantri Sukanya Samriddhi Yojana Vs Public Provident Fund
| Feature | PM-SSY | PPF |
|---|---|---|
| Interest Rate (Q4- Jan to March 2021) | 8.2% | 7.1% |
| Eligibility | Up to the age of 10 years only from the date of birth. | 15 Year |
| Deposit Limit | Minimum INR. 250/-and Maximum INR. 1,50,000/- | Minimum INR. 500/-and Maximum INR. 1,50,000/ |
| Tax Benefit | Under Section 80 C of the Income Tax Act, 1961. (up-to Rs 1.5 Lakh) | same benefit. |
| Maturity tenure | 21 years | 15 years |
| Premature withdrawals | After the age of 18 | after 5 budgetary years. |
| Nomination facility | No | Yes |
| Transfer facility | Yes | Yes |
| Loan facility | No | Yes |
| Online payment | Yes | Yes |
Calculation logic of Account Deposits
The SSY uses the following formula to generate results:-
CI = PA (1 + ROI/No) ^ NoY
CI – Compound interest.
PA – Principal amount.
ROI – Rate of interest.
No – Number of times interest compounds in a year.
Y – Number of years.
Calculation with Rs.150000 Contribution
- Fixed Interest- 7.6% (with effect from 01-04-2020 ).
- Tenure- 15 years (Maximum).
- Payment Frequency- Yearly.
| Year | Amount Deposited | Interest Rate | Interest Earned | Withdrawal Amount | Balanced Amount |
|---|---|---|---|---|---|
| 1 | 150000 | 7.60% | 11400 | 0 | 161400 |
| 2 | 150000 | 7.60% | 23666.4 | 0 | 335066 |
| 3 | 150000 | 7.60% | 36864.96 | 0 | 521931 |
| 4 | 150000 | 7.60% | 51066.72 | 0 | 722998 |
| 5 | 150000 | 7.60% | 66347.88 | 0 | 939346 |
| 6 | 150000 | 7.60% | 82790.28 | 0 | 1172136 |
| 7 | 150000 | 7.60% | 100482.36 | 0 | 1422618 |
| 8 | 150000 | 7.60% | 119518.92 | 0 | 1692137 |
| 9 | 150000 | 7.60% | 140002.44 | 0 | 1982139 |
| 10 | 150000 | 7.60% | 162042.6 | 0 | 2294182 |
| 11 | 150000 | 7.60% | 185757.84 | 0 | 2629940 |
| 12 | 150000 | 7.60% | 211275.48 | 0 | 2991215 |
| 13 | 150000 | 7.60% | 238732.32 | 0 | 3379947 |
| 14 | 150000 | 7.60% | 268275.96 | 0 | 3798223 |
| 15 | 150000 | 7.60% | 300064.92 | 0 | 4248288 |
| 16 | 0 | 7.60% | 322869.84 | 0 | 4571158 |
| 17 | 0 | 7.60% | 347408.04 | 0 | 4918566 |
| 18 | 0 | 7.60% | 373811.04 | 0 | 5292377 |
| 19 | 0 | 7.60% | 402220.68 | 0 | 5694598 |
| 20 | 0 | 7.60% | 432789.48 | 0 | 6127387 |
| 21 | 0 | 7.60% | 465681.36 | 0 | 6593068 |
- Total Amount Deposited- Rs.22,50,000.
- Amount after maturity- Rs.65,93,068.
Frequently Ask Question
- How to transfer money to sukanya samriddhi account online.
Post office transaction(Point no 4) & SBI transaction (Point no 5). - How to open sukanya samriddhi account online in sbi ?
Open SSY Account in SBI - How to open sukanya samriddhi account online in hdfc, Icici etc. ?
Open SSY account in HDFC,ICICI etc.
Conclusion
It’s a pure debt product and requires long-term investment so somewhere it does not match the inflation pace and results in inadequate savings for the girl child’s education or marriage.
And in case interest rates fall which is happening nowadays very frequently, it will not meet your end. Instead, if the child is very young go with the SIP route in the equity market to save enough for your girl child’s future instead of burning a hole in your retirement fund.
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NOTE: Customers are advised to visit the NSI-India site for the latest instructions in the scheme.