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Generally when we want to invest money on any investment scheme , we always asks our friends and relatives that where we can invest ? and they suggests the investment schemes which they like most. Then we invest as per their suggestions, that is good as we consider them as our well wisher , But here I want to mention one thing, if we know end to end information of each investment schemes at least it will help us to understand if that investment scheme is good for us or not.
Hence it is better to have a complete idea about each investment scheme where we invest. Therefor this blog will help you to know end to end information of many Indian investment schemes available right Infront of you.
In this blog post I will be explaining my analysis on Sukanya Samriddhi Account. This will be a complete guide on Sukanya Samriddhi Account. Please read till end of the blog post to know the complete information about this Sukanya Samriddhi Account. Lets get started.
Table of Contents
- What is Sukanya Samriddhi Account ?
- History of Sukanya Samriddhi Account
- How Does Sukanya Samriddhi Account Work ?
- Features of Sukanya Samriddhi Account
- Who can Open Sukanya Samriddhi Account ?
- How Many Sukanya Samriddhi Account can be opened for one Girl Child ?
- Where can you open account ?
- What are the documents required to open SSA ?
- What is the Deposit Limit of SSA
- Deposit Period of SSA
- What are the Income Tax Benefits of SSA
- How to Deposit Money into SSA ?
- In-Active SSA account.
- Interest Rate of Sukanya Samriddhi Account.
- Compounding Frequency of Sukanya Samriddhi Account.
- Maturity Period of Sukanya Samriddhi Account scheme
- Partial Withdrawal from Sukanya Samriddhi Account
- Premature closure of Sukanya Samriddhi Account
- Nomination Facility for Sukanya Samriddhi Account
- Passbook for Sukanya Samriddhi Account
- Duplicate Passbook Sukanya Samriddhi Account
- SSA Maturity Amount projection Table
- FAQ about Sukanya Samriddhi Account
What is Sukanya Samriddhi Account ?
Sukanya Samriddhi Account (SSA) is a saving scheme introduced by Govt. Of India. SSA is a girl child prosperity scheme and it aims mainly for the higher education and marriage of a girl child.
History of Sukanya Samriddhi Account
SSA Scheme was launched by the Govt. of India on 22-January-2015. It was launched under the campaign “Beti Bachao, Beti Padhao” meaning ” Save Girl Child and Educate Girl Child” .
How Does Sukanya Samriddhi Account Work ?
- Open SSA account in a Bank or post office in the name of the girl child.
- Deposit the amount (From Rs. 250 to Rs. 1.5 Lakhs) every year for the first 15 years.
- After 15 years, you no need to deposit the amount from 16th year to 21st year.
- Your account will continue to earn the yearly compounded interest rate % announced by the Government of India from time to time.
- After completion of 21 years. the account will get mature and the girl child can withdraw the entire maturity amount. Account will be closed after maturity.
- If the girl child gets married before completion of 21 years from account opening , then the entire accumulated balance can be withdrawn.
Features of Sukanya Samriddhi Account
- SSA is exclusively for girl child.
- Introduced by Govt. of India.
- Safe and Guaranteed Return.
- Income Tax Benefits.
- Currently High interest rate compared to other saving schemes.
- Partial Withdrawal facility for the higher education of the girl child.
- Full withdrawal facility for the marriage of girl child.
Who can Open Sukanya Samriddhi Account ?
- Parents or legal guardian of a girl child can open the SSA account in the name of the girl child.
- SSA Account can also be opened in the name of Adopted girl child.
- Age of the girl child should be less than 10 years at the time of account opening. That is, from new born baby to less than 10 years of age.
- The girl child is the account holder in this saving scheme and the parent or Guardian is called the depositor in this scheme.
- Parent or legal guardian will operate the account till the girl child becomes 18 years of her age.
How Many Sukanya Samriddhi Account can be opened for one Girl Child ?
- There Should be only one SSA account in the name of a girl child.
- Maximum of 2 accounts can be opened in the name of two different girl child.
- You can open more than two accounts if you are blessed with more than 2 girl child on the first birth.
- You can also open more than two accounts if you are blessed with 2 or more girl children on the second birth provided that you had only one girl child from the first birth.
Where can you open account ?
You can open SSA account in
- Authorised Banks.
- Post office.
What are the documents required to open SSA ?
The following documents are required to open SSA account.
- Birth Certificate of the girl child.
- Identity Proof of the Parent or guardian .
- Address proof of the Parent guardian.
What is the Deposit Limit of SSA
- Minimum Deposit Amount Rs. 250 per financial year.
- Maximum Deposit Amount Rs. 1.5 lakhs per financial year.
- Deposit Amount should be multiplies of Rs. 50.
- There are no limits on the number of deposits made in a month or in a financial year.
Deposit Period of SSA
- Deposit Period is only for the first 15 years. That means you need to deposit every year from the account opening date till the completion of 15 years.
- Though this scheme has a maturity period of 21 years, you are required to make deposits for the first 15 years only.
- After 15 years , you can not deposit any amount into the account.
- After 15 years your account will be keep earning the yearly compounded interest as per the interest rate announced from the time to time by the Government Of India for the remaining 6 years.
- The deposit Period was 14 years when the scheme was launched . But in March-2016, this was updated to 15 years.
What are the Income Tax Benefits of SSA
- Investments made in the SSA scheme are eligible for deductions under Section 80C, subject to a maximum capital of Rs 1.5 lakh.
- The interest that accrues against this account which gets compounded annually is also exempt from tax under Section 10 of the Income Tax Act.
- The Amount received upon maturity/withdrawal are also exempt from income tax.
How to Deposit Money into SSA ?
You can deposit into your SSA account in one of the following ways.
- Cash : Date of deposit will be same day.
- Cheque : Cheque drawn in favour of the Post Master of the Post Office or the Manager of the Bank where the account is opened. Date of deposit will be the date of encashment of the cheque.
- Demand Draft (DD) : DD drawn in favour of the Post Master of the Post Office or the Manager of the Bank where the account is opened. Date of deposit will be the date of encashment of the DD.
- Online Transfer : Bank or Post office should using CBS ( Core Banking Solution ). Date of deposit will be date of deposit of money into the account.
In-Active SSA account.
- If you don’t deposit the minimum amount of Rs. 250 in a financial year , then the account will become default or in-active account.
- To make the account active , you have to pay a penalty of Rs. 50 for each year of default and minimum deposit of Rs. 250 for each year default.
- For example, if your account is in-active for 4 financial years, then to make it active , you have to pay a penalty of Rs. 200 and along with you have to deposit minimum deposit amount Rs. 1000 (250 x 4).
- To make the account active you have the time period of 15 years from the date of account opening.
- Even if you don’t make your account active within 15 years of account opening , then entire deposit amount (Amount deposited even before the date of in-active account) will earn interest as per the interest rate applicable to the scheme from time to time till maturity date.
Interest Rate of Sukanya Samriddhi Account.
- Current annual interest rate is 7.6%.
- The Interest Rate is not fixed and it will be announced by the government from time to time.
- From 01-April-2016 onwards, the interest rate has been announced on a quarterly basis. It used to be on a yearly basis earlier.
Compounding Frequency of Sukanya Samriddhi Account.
- SSA scheme follows “yearly” compounding frequency.
- Interest is calculated on a monthly basis and credited into the account at the end of the financial year.
- Monthly interest is calculated on the lowest Balance between the close of 5th day and end of the month.
- For example, you have Rs. 10000 in the account on the 5th day of the month and you deposited another 10000 on the 20th of the month. At the end of the month, your account will have Rs. 20000 but the interest will be calculated for Rs 10000 only.
- It means that if you deposit on or before 5th , then you will earn interest for that month.
- So the best time to deposit in Sukanya Samriddhi Account scheme is on or before 5th of the month.
Maturity Period of Sukanya Samriddhi Account scheme
- Maturity period is 21 years from the date of account opening.
- SSA account will mature on completion of 21 years from the date of account opening.
- On Maturity , the entire 100% balance including interest will be paid to the girl child and the account will be closed.
- To get the maturity amount , the girl has to submit identity proof , address proof and indian citizenship.
- No Interest will be paid after maturity. If you forget to close the account after 21 years , then interest will not be paid after the maturity.
- If the girl is planning to marry before the maturity period of 21 Years, then the girl can request the concerned Bank or Post office to close the account and pay the maturity amount.
- Such Account closure request can be made a month before the marriage or within 3 months after marriage.
- Such account closure request should be made with the submission of age proof to prove that the girl will be 18 years of age or more on the date of marriage.
- The concerned Bank or Post office will pay the account balance along with interest till the date of request for closure, to the girl child and close the account.
- Note that it is not compulsory to close the account following the marriage of the girl child. You have the option to keep the account open beyond marriage till the completion of 21 years from account opening date.
Partial Withdrawal from Sukanya Samriddhi Account
- Partial withdrawal facility is allowed when the girl child reached 18 years of age or has completed 10th standard, whichever is earlier.
- Partial withdrawal facility is allowed only for the purpose of education of the girl child.
- For this withdrawal you need to submit the proof of “admission Offer” or fee slip to be paid to the educational institution.
- Your eligibility withdrawal limit will be the lowest of the following 2 things
- Maximum of 50% of the outstanding balance at the end of the financial year just before the year of withdrawal.
- Actual admission fees or fee slip to be paid to the educational institution.
- For example, your eligible withdrawal limit may be Rs. 2 Lakhs. But , the college admission fees and subsequent year fees may be around Rs. 1 Lakh. In this case , you can withdraw a maximum of Rs. 1 lakh only.
- You can withdraw as a onetime lump sum amount or one withdrawal per year for a maximum of 5 years. Yearly withdrawal amounts need to be equal.
Premature closure of Sukanya Samriddhi Account
You can close the SSA account before maturity under the following situations.
- Death Of girl child.
- Girl child becomes NRI or citizen of another country.
- extreme difficulties in maintaining the account .
- For any other reasons.
Nomination Facility for Sukanya Samriddhi Account
- Nomination Facility not available in this scheme.
- If the girl child dies , the account will be closed immediately and the balance along with interest will be paid to the parent or the legal guardian of the girl child.
Passbook for Sukanya Samriddhi Account
When you open SSA account , you will be given a passbook. This is similar to the one issued by the Bank or post office when you open a savings bank account. The passbook will contain the following details.
- Account number
- Date of account opening
- Name of the girl child
- Address of the girl child
- Name of the parent or guardian
- Address of the parent or guardian
- Relationship of parent or guardian with the girl child.
You need to take the passbook when you deposit , receive interest , withdraw and close the account.
You also have the option to maintain the account completely in “Online Banking” method if the bank or Post office provides CBS (Core Banking Solutions) facility.
Duplicate Passbook Sukanya Samriddhi Account
Duplicate Passbook facility is available. you can apply for duplicate passbook in case of loss or damage of the original passbook. You need to pay a fee of Rs. 50 to get the duplicate passbook.
SSA Maturity Amount projection Table
Let us take an example of a monthly SSA investment and see how much maturity amount a girl child is going to get after the maturity.
|Deposit Period in years
|Total Deposit in Rs.
|Total Interest earned in Rs.
|Maturity Amount after 21 years in Rs.( Total deposit + Interest Earned )
FAQ about Sukanya Samriddhi Account
Is there any loan facility available from Sukanya Samriddhi Account ?
No , there is no Loan facility is available in this scheme.
Is there option of account transfer for Sukanya Samriddhi Account ?
Yes Account transfer facility is available. You can transfer the SSA account from one post office to another post office . One bank to another bank. from post office to bank and vice versa.
Account transfer is free of cost if the girl child or the parent or guardian is shifting house from one place to another place.
If you want to transfer for other reasons, then you have to pay Rs. 100 to the Bank or Post Office to which you want to transfer the account.
I am NRI can I open the Sukanya Samriddhi Account?
NRI (Non Residential Indian) are not eligible to open the account.
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