Sukanya Samriddhi Account | New Rules 2020-21 | Interest Rate 2020-21

Sukanya Samriddhi Account Scheme Yojana

Introduction

The Sukanya Samriddhi Yojana (SSY) 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.
Key benefit of the scheme offers you with yearly compound interest on investment value along with tax benefit under sec 80C.

Here we will cover the SSY Scheme in depth:

Sukanya Samriddhi Account Scheme features

FeatureTerms and Conditions
Interest ratesRate of interest 7.6​​% Per Annum(with effect from 01-10-2020 ).
Calculated on yearly basis ,Yearly compounded.
Deposit Limit Minimum INR. 25​0/-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.
EligibilitySSY account can be opened up to age of 10 years only from the date of birth. A legal Guardian can open account in the name of Girl child.
Maturity tenureAccount can be closed after 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 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 month from 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 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.

New rules 2020-2021 of Sukanya Samriddhi

In this para will discuss about five major changes introduced in the scheme in year 2020, please refer 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.

Interest Rate

Time IntervalInterest (% Yearly)
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

  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

Documents Required

  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 Sukanya Samriddhi Account?

Post Office

In this paragraph, I’m going to discuss How to apply for SSY account.
It’s totally an offline process to apply for the SSY account.
Kindly follow below steps to open a 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 a account
Account Transfer
Closure
Source-Post Office

State bank of India

SBI permits the launch of a SSY account in a simple and bother free way.
People who don’t have a account with SBI can also open a SSY account.
Can follow 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.
Download Application Form
Opening of a account
Linking to account to use name
Source – SBI

Other banks like HDFC,ICICI etc.

One should follow the same process like SBI to open the account from other private sector banks. You can download the application form from bank’s website.

Sukanya Samriddhi Vs Public Provident Fund

FeatureSSAPPF
Interest Rate (Q1- April to June 2020)7.6%7.1%
EligibilityUp to 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
On-line paymentYesYes

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.
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

  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 purely debt product and require long term investment so somewhere it does not match the inflation pace and result in inadequate saving for the girl child education or marriage.

And in case interest rates fall which is happening now days very frequently it will not meet your end. Instead if the child is very young go with SIP route in equity market to save enough for your girl child future instead burning a hole in your retirement fund.


If you like this information, Please do share 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 NSI-India site for latest instructions in the scheme.


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