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Pradhanmantri Sukanya Samriddhi Yojana (PM-SSY) Account | New Rules | Interest Rate

Sukanya Samriddhi Account |Interest Rates|Post Office| SBI

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 benefit under sec 80C.

Here we will cover the SSY Scheme in-depth:

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Features

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FeatureTerms and Conditions
Interest ratesRate of interest 7.6​​% Per Annum(with effect from 01-10-2020 ).
Calculated on yearly basis, Yearly compounded.
Deposit LimitMinimum INR. 25​0/-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.
EligibilitySSY 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 tenureThe 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 & closurePartial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after the Account holder’s attaining age of 18 years.
Normal Premature closure will be allowed after completion of 18 years on the occasion of marriage (1 month before and 3 months from the date of marriage)
Tax BenefitUnder 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
Source – India-Post

Extra Important Features

  1. Transfer facility is available: SSY account can be transferred from one post office to a bank and vice versa. This is facility only via off-line.
  2. A legal Guardian/Biological parents can open an 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.
  3. There is No nomination facility in this plan, in case of unfortunate event such as girl child death, the account will be shut and the lumpsum amount as on given date with interest will be credited to the parent or legitimate watchmen of the record holder.
  4. Online payment facility is available for Post office through Operable Net-banking and IPPB Saving Account. However, banks also are providing online facility for deposit the amount.
  5. NRIs are not allowed to open a account.

Also Read Atal Pension Yojana [APY] in Post Office | Features & Benefits | Application Form

New Rules of Pradhanmantri Sukanya Samriddhi Account

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This para will discuss five major changes introduced in the scheme in the year 2020, please refer to the below points:

  1. SSY account can’t be operated by the girl child till she attains the age of 18 years.
  2. Premature closure is allowed as per new rule in case of the death of the girl child or if the account holder is taking medical treatment for life threatening diseases or death of the guardian..
  3. Scheme will provide highest interest rate till maturity of the inactive accounts as well. For example, if one fails to pay min deposit of 250/- yearly then one is entitle for the same interest rate till maturity of the account as compare to other scheme if installment not paid then normal saving bank interest get accrued instead of scheme interest till it regularised by paying 50/- as penalty.
  4. SSY account can be opened for more than two daughter provided one provide 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 IntervalInterest (% Yearly)
Q4- Jan to March 20217.6
Q3- October to December 20207.6
Q2- July to September 20207.6
Q1- April to June 20207.6
Q4- Jan to March 20198.4
Q3- Oct to Dec 20198.4
Q2- Jul to Sep 20198.4
Q1- Apr to Jun 20198.5
Q4- Jan to March 20198.5
Q3- Oct to Dec 20188.5
Q2- Jul to Sep 20188.1
Q1- Apr to Jun 20188.1
Q4- Jan to March 20188.1
Q3- Oct to Dec 20178.3
Q2- Jul to Sep 20178.3
Q1- Apr to Jun 20178.4
Source Post office

Benefits of Pradhanmantri Sukanya Samriddhi Yojana

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  1. Attractive interest rates – SSY offers the highest rate of interest as compared to other government-backed tax saving schemes even during inactive state.
  2. Transfer facility – SSY account can be transferred from one post office to a bank and vice versa using off-line ways.
  3. SSY Account can be opened for more than two girls in some special condition that can be:
    Girl child is born after the birth of twin or triplet girls, third account cannot be opened.
    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.
  4. 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 provide multiple option to investment with minimum deposit of Rs. 250 in a year (max. Rs. 1.5 lakh per annum).
  5. Tax benefit – Investment under SSY scheme qualifies for the benefit of Section 80C (up to Rs. 1.5 lakh 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

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  1. SSY Account opening form.
  2. Birth Certificate of the girl child.
  3. Two or Three photo of the parent/ legal guardian of the girl child.
  4. Address evidence of the mother or father of the beneficiary like Adhar card,Passport, Voter ID card,Telephone invoice etc.
  5. 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

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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.

  1. You can download the application form / opening form and fill required necessary fields.
  2. You should carry all necessary documents like Birth Certificate,Photograph,Address and ID proof.
  3. One is required to provide cheque/demand draft details along with amount on application form.
  4. Submit the form at designated branch of Indian post office.

Download Application Form

Opening of an account
Account Transfer
Closure
Source-Post Office

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.

  1. You can download the application form and fill required fields.
  2. You should attach all required documents like Birth Certificate,Photograph,Address and ID proof along with application form.
  3. One is required to provide cheque/demand draft/Case details along with amount on application form.
  4. Submit the form at designated branch of State Bank of India.
  5. You can download the “Linking to account to use name” form and submit the form at designated branch of State Bank of India for, Further online transaction.

Also Read National Pension System: Secure Your Retirement without Stress

Download Application Form

Opening of an account
Linking to account to use the name
Source – SBI

Other banks like HDFC,ICICI etc.

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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

FeaturePM-SSYPPF
Interest Rate (Q4- Jan to March 2021)7.6%7.1%
EligibilityUp to the age of 10 years only from the date of birth.15 Year
Deposit LimitMinimum INR. 25​0/-and Maximum INR. 1,50,000/-Minimum INR. 500/-and Maximum INR. 1,50,000/
Tax BenefitUnder Section 80 C of the Income Tax Act, 1961. (up-to Rs 1.5 Lakh)same benefit.
Maturity tenure21 years15 years
Premature withdrawalsAfter the age of 18after 5 budgetary years.
Nomination facilityNoYes
Transfer facilityYesYes
Loan facilityNoYes
Online paymentYesYes

Calculation logic of Account Deposits

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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.
YearAmount DepositedInterest RateInterest EarnedWithdrawal AmountBalanced Amount
11500007.60%114000161400
21500007.60%23666.40335066
31500007.60%36864.960521931
41500007.60%51066.720722998
51500007.60%66347.880939346
61500007.60%82790.2801172136
71500007.60%100482.3601422618
81500007.60%119518.9201692137
91500007.60%140002.4401982139
101500007.60%162042.602294182
111500007.60%185757.8402629940
121500007.60%211275.4802991215
131500007.60%238732.3203379947
141500007.60%268275.9603798223
151500007.60%300064.9204248288
1607.60%322869.8404571158
1707.60%347408.0404918566
1807.60%373811.0405292377
1907.60%402220.6805694598
2007.60%432789.4806127387
2107.60%465681.3606593068
  • Total Amount Deposited- Rs.22,50,000.
  • Amount after maturity- Rs.65,93,068.

Frequently Ask Question

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  1. How to transfer money to sukanya samriddhi account online.
    Post office transaction(Point no 4) & SBI transaction (Point no 5).
  2. How to open sukanya samriddhi account online in sbi ?
    Open a SSY Account in SBI
  3. How to open sukanya samriddhi account online in hdfc, Icici etc. ?
    Open a 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 result 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.


If you like this information, please do share it with your friend and family.
If you require any further information, please feel free to post comments in the box below.
NOTE: Customers are advised to visit the NSI-India site for the latest instructions in the scheme.


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