SBI Sukanya Samriddhi Yojna: Features, Tax Benefits, and Interest Rate

SBI Sukanya Samriddhi Yojna (SSY) scheme was launched by government of India under its campaign Beti Bachao Beti Padhao. The scheme seeks to empower the girl child and encourage parents of the girl child to save enough corpus for her so that she does not face any hurdle in higher education and marriage. Presently, if you open an account under this scheme, you can fetch an interest rate of 7.6% for the quarter ending March 31, 2022. Check some of the key details of the scheme:

1. Tax Benefits

An account holder of SSY scheme can enjoy tax benefits under section 80C of the income tax Act, 1961. Additionally, the returns and the maturity amount will be exempted from tax. SSY also provides highest tax free returns with sovereign guarantee and is available with exempt-exempt-exempt (EEE) status. The maturity benefits remain exempted from tax.

2. When the account can be opened?

Parents can open the Sukanya Samriddhi Yojna account for their girl child any time after her birth till the girl child turns 10-years-old. Parents can open the account in any post office or authorized branch of commercial banks. Parents can open only one account for one girl child and a maximum of two accounts for two girl children.

Parents must deposit the birth certificate of the girl child in whose name the account has been opened at account opening time in nearest post office and bank along with other documents namely identity proof and address proof of depositor.

3. Minimum and maximum deposit limit

The account can be opened with a minimum of Rs 250 and the total amount deposited on single or multiple occasion should not go beyond Rs 150,000 in a particular financial year. One can make deposit in the account till 15 years from date of opening. If the girl child is 9 years old, deposit must be made till she turns 24 years old. The account will turn defaulted in case parents fail to deposit the minimum amount of Rs 250 in a single financial year.

However, parents can revive such account before 15 years completion simply by paying Rs 250 along with Rs 50 as penalty. Between 24 to 30 age when the account matures, it will keep earning interest on balance.

4. Documents needed to open the account

Parents need to submit Applicant's photograph, Aadhaar number of guardian, PAN of guardian, girl child's birth certificate, KYC documents like address proof and identity proof.

5. How interest rate calculation is done on the deposit?

Government announces interest rate on the scheme at the end of every quarter. When the scheme was launched in 2014, the interest rate was 9.1% , 9.2% in 2015, 8.6% From April 1, 2016 -June 30, 2016, 8.5% From October 1, 2016-December 31, 2016 and now it is 7.6%.

6. How SSY account operates?

It is operated by the guardian till the child turns 18 years old. After she turns 18, she can operate the account simply be depositing required KYC documents.