9.1% Sukanya Samriddhi Account – Saving Scheme for Girl Child
Last week, Prime Minister, Mr. Narendra Modi launched Sukanya Samriddhi Account, saving scheme for child, which can be used for girl child education or marriage expenses. This is a small saving scheme which offers 9.1% interest rates for Financial year 2014-15. Amount deposited under Sukanya Samriddhi Account is exempted u/s 80C. What are the features of Sukanya Samriddhi Account ? What are the benefits of this saving scheme intended for girl child? Are there any drawbacks in this Sukanya Samriddhi Scheme? What are the sukanya samriddhi account rules 2014? How to look Sukanya Samriddhi Account Details? How Sukanya Samriddhi Account Interest Rates are compared with PPF account which has sumilar features?
Features of Sukanya Samriddhi Account
- Guardian or parent can open Sukanya Samriddhi Account in the name of the minor girl child till 10 years of age.
- Minimum deposit is ₹ 1,000 and in multiples of ₹ 100 thereon.
- Maximum deposit can be made is ₹ 1.5 Lakhs in a financial year.
- Interest rates are 9.1% for financial year 2014-15. Interest would be decided by central government year on year. Interest on this account is tax free.
- You can open Sukanya Samriddhi Scheme account at any Post Office or at any authorized branches of commercial banks in India.
- Account would be active till girl attains 21 years of age or during marriage after 18 years of age.
- To meet higher education expenses, partial withdrawal is allowed up to 50% of the balance accumulated till the end of the last financial year. This is allowed after girl attained 18 years of age. This provision is kept so that early marriage is prevented before 18 years of age.
- The amount can be deposited through Cash or Cheque or Demand Draft.
- Interest is compounded on an annual basis and would be first credited when a girl attains 14 years of age. The logic behind this is not known.
- Passbook is given where deposits and interest credit transactions would be updated.
- Sukanya Samriddhi Account can be transferred anywhere in India in case girl moves from one city to another.
You may also like: Which are the best child investment Plans in India?
What are the benefits of Sukanya Samriddhi Account Girl Saving Scheme?
- High interest rate of 9.1% for financial year 2014-15. None of the small saving schemes, offer such high interest rates.
- Tax deduction u/s 80C upto ₹ 1.5 Lakhs in a financial year.
- Good for Parents / Guardian who want to save for their child for education or marriage for a long term of 18-21 years and looking for safety of their investment.
- Interest on Sukanya Samriddhi Account is tax free. This was announced on 28-Feb-2015 during budget announcement.
Drawbacks of Sukanya Samriddhi Girl Saving Scheme
Some of the major drawbacks of Sukanya Samriddhi Account are indicated below.
- Lock-in period of this scheme is 21 years or at marriage after 18 years of age. Partial withdrawals for education is allowed at 50% of the accumulated corpus after 18 years of age. Hence it is illiquid investment scheme.
- Returns of 9.1% or future interest may not meet future expenses as the cost of education / marriage expenses has been boosting year on year at higher rate.
- Parent / Guardian can open only 2 Sukanya Samriddhi Accounts. If they have more than 2 girl children, they cannot open more accounts.
- Online money transfer to Sukanya Samriddhi Account is not possible. You have to deposit only through cash / cheque / demand draft.
- There is no guarantee of getting higher interest rates in future. They are fixed every year by Central Government as it does for PPF account.
- In case minimum amount is not deposited in any financial year, you can re-activate by paying a penalty of ₹ 50 per financial year and by depositing any minimum deposits of backlog.
How to open Sukanya Samriddhi Account?
Parent / Guardian can take their address proofs along with a girl child's birth certificate and approach any post office or authorized branches of commercial banks and open this girl saving scheme.
What are the tax benefits available for this Sukanya Samriddhi Account?
- Amount deposited upto ₹ 1.5 Lakhs in a financial year is available as tax deduction u/s 80C.
- Maturity amount is tax free as announced on 28th February, 2015 during budgets.
Also Read: Best Tax Saving Investment Options available u/s 80C for 2015
Sukanya Samriddhi Account Vs PPF Account – Comparison
There are some similarities in both these accounts, hence I thought, I would provide a comparison.
Lock-in period: Sukanya Samriddhi Account is locked for 21 years or at girls marriage after 18 years. PPF account on the other hand has lock-in period of 15 years. PPF scores high in this case.
Interest Rates: Sukanya Samriddhi scheme currently offers 9.1% for this financial year. PPF on the other hand, offers around 8.7%. Both are tax free at maturity. Hence Sukanya Samriddhi scheme scores high in this case.
Partial withdrawals: In Sukanya Samriddhi scheme, partial withdrawal’s are allowed after 18 years of age to the tune of 50% for girl education. PPF on the other hand, partial withdrawal are allowed after 6 years with certain conditions.
Should you consider Sukanya Samriddhi Account as an investment option for your girl child?
Interest rates are good. However, it may fluctuate every year like PPF rates. Child education / girl marriage expenses are rising every year. Hence 9% returns may not be sufficient in the long run of 18-20 years. If one can take some risk, they can consider investing in ELSS mutual funds (for tax benefit purpose) or equity mutual funds as they provide good returns in long run of 15-20 years. Some amount can be parked in debt schemes like Sukanya Samriddhi Account to gain high interest rates.
Readers, what is your view on Sukanya Samriddhi Girl Child Saving Scheme? Do you feel this is a good scheme promoted by Central Government.
If you like this article, please share this on your Facebook or Twitter. This would be a special gift which you would be giving to our blog.
Suresh
Sukanya Samriddhi Account – Saving Scheme for Girl Child
- 10 Worst Performing Mutual Funds in the Last 5 Years (1.7% to 9.1% CAGR Returns) - April 20, 2025
- SIP Calculator – How Much Time It Will Take to Achieve a 1 Crore Goal with 1,000, 2000, 3,000 and 5,000 SIP? - April 18, 2025
- 3 NPS Funds Delivered Over 22% in 5 Years (Consistent Performance) - April 15, 2025
Discover more from Myinvestmentideas.com
Subscribe to get the latest posts sent to your email.
My Daughter is one month Old… Shall we open through Post office????
why sbi bank need adhar card below 2 years child for sukanya samrudhi account, my daughter age is is 4 month ,is adhar card required for the same age…please suggest
Better option is to open acvount in post office
My Daughter is one month Old… Shall we open through Post office????
From opening Account how long year till would be deposit?
You need to invest every year. Here financial year would count from 1-Apr to 31-Mar
My daughters is 9&10 year old how many years ago to maschort policy
my daughter age 10year first deposited SSA but after 21years +her 10years was deposited = 31years how? i am not understand please tell me explain
hi its not from the opening of the account but when your daughter complete 21 years of age then she can withdraw the same
For three months I am not able to open acnt. where should I go and when ? Will I get this benefits ? Can I really open my a/c for my dearest daughter age of 2 yrs. If true ,tell me suggestion please. ……
If I go to post office or bank ,they always say,now it is stop in this time ,come next month ,next month .. Aug st to till date .where should I go and when ? Will I get this benefits ? Can I really open my a/c for my dearest daughter age of 2 yrs. If true ,tell me suggestion please. ……
can I open an account now, my daugher is 9 1/2 years old.
If I go to post office or bank ,they always say,now it is stop in this time ,come next month ,next month .. Aug st to till date .where should I go and when ? Will I get this benefits ? Can I really open my a/c for my dearest daughter age of 2 yrs. If true ,tell me suggestion please. ……
I have to open ssa account bt m confused where should I open it
1.Once after maturity of this scheme can we take this amount without our daughter signature?
2.if my daughter got married @19 then what?
3. In case if we stop to continue this scheme in middle of the year , then can we get earlier amount back?
Up to how many years need to deposite?
till girl age reach to 14th year
How can I transfer fund to this account thrue net banking…
there are few post offices where you get net banking facility so if you open an account in any of such post office you get net banking.
but i would rather approach you to open an account in Bank( Few national banks offer this facility to open an account) and once you open account , you get net banking facility.
Dear Sir,
my daughter was born in dubai, UAE, but they are India now.
we are eligible for this scheme.
Abdul, NRI’s cannot apply for this scheme. However since your daughter is in India, you are eligible to apply for this scheme.
Thank you very much.. sir
Can I transfer fund to this account thrue net banking?
Yes Bhavesh. Once you open the account, you can transfer online
sir, i have an idea that government gives 1lakh rupees on annual basis to those family ,which has more then 3 girls or beti………………………..i think this on is the best idea to save girls
Hi this account having any bond for 14 years
If I pay 50000 per annum……
What exact amount will I get against 7lakhs which I paid in 14 years…..
Hi for example pay the money 2 years unexpect death by naturl or road death come back the money
Hi… The interest rate of 9.1% gets revised from time to time based on the market rates. So I don’t think there will be a problem with increasing prices for education and marriage in future.
Your thoughts anyone?
my baby born on 07/08/2015 so join in the plan how many age
1 100000 9500 109500
2 100000 10402.5 219902.5
3 100000 20890.7375 340793.2375
4 100000 32375.35756 473168.5951
5 100000 44951.01653 618119.6116
6 100000 58721.3631 776840.9747
7 100000 73799.8926 950640.8673
8 100000 90310.88239 1140951.75
9 100000 108390.4162 1349342.166
10 100000 128187.5058 1577529.672
11 100000 149865.3188 1827394.99
12 100000 173602.5241 2100997.515
13 100000 199594.7639 2400592.278
14 100000 228056.2665 2728648.545
15 100000 259221.6118 3087870.157
16 100000 293347.6649 3481217.822
17 100000 330715.693 3911933.515
18 100000 371633.6839 4383567.198
19 100000 416438.8839 4900006.082
20 100000 465500.5778 5465506.66
If am I deposit 1 lakh per year may I get 54,65,506.66 after 20 years….please Advice…..
Sir is 9.1℅ p.a or months interest
It is 9.1% per annum
Can NRI open this account for their daughter who lives with them abroad..
No Hari. It can be opened in India by resident Indian
this plan also apply for new born baby?
Kid should be less than 10 years. It applies for new born babies too
HAI , DOB OF MY CHILD IS 6-10-2002, CAN SHE JOIN ………..
Total how much amount we need to diposit and how much total sum assured of this scheme. .
Enter your comment here…sir please riply death parrents / gaurgian or chaild in condition
There is no clarity in the policy in the event of parents’ death. That stands as a major drawback.
Hi Suresh,
Can i invest each year different amounts to the account? For example 1st year i deposit 20000 next year i can deposit only 10000 like that.
Hi I am from uttar pradesh but we are living in gurgaon haryana last 25 year in rent house so can we open this account from here??
Please advise
Suresh,
How the calculation. If i invest 3000 every month hiw much i can Get end of 21 years of age and how many years need to invest
sir how many time means invest start from her dte of birth
my daughter date of birth is 10/10/2010 then how many maximum rupees invest in this sukanya samirdhi scheme and how many time invest in scheme.
If the age at the entry is 9 years, how many years the parents can deposit
Usha, it would be from 9th year to 14th year
Hi Sir Good morning, Totally 5 years ha…….
we can open for Suganya Samriddi Account in IOB? they provide same intrest ha….
Hi suresh if I want to open account what r all the documents required….. Please tell me …..
Hi Indra, There are various documents required to open Sukanya Samriddhi Yojana account. You can refer this article for more info. https://myinvestmentideas.com/2015/03/how-to-open-sukanya-samriddhi-yojana-account-at-post-offices-and-banks/
list of authorised banks may be disclosed
Hi Shanta, Check this article where I have given the list of authorised banks where you can open Sukanya Samriddhi Yojana Scheme. https://myinvestmentideas.com/2015/03/sukanya-samriddhi-account-list-of-authorised-banks-and-download-application-formspecimen-passbook/
full of detaills of sukanyasamridhi yojana because i am very confusion for the scheme
Hi Suresh, I have a doubt. If the age at entry is 10 years, how many more years the parents can deposit. (Is it upto 14 yrs (age) or 21 yrs (age)
Vijay, One can invest upto 14 years of girl age. Means, you can invest 4 years only in this case.
Hi Suresh, I have a doubt. Does Sukanya samriddhi has any insurance coverage? what if something goes wrong with the parents before child completing 14 years of her age, after completing 14 years of her age?
Shubha, This is just a saving scheme and protection scheme. There is no insurance coverage. Regd that you can take term insurance.
Sukanya Investment is welcome. Why government is not committed for fixed interest rates above 9.1% from the day of investment ?.It is also suggested that, government should add same amount of investment made by the parents/guardian, so that, sukanya can get double amount at her marriage time.This will boost invenstment more.
Confusion cleared.It is 21 yrs from tha date of opening the acc.
Plz look into one more important point missed in ur article-one can deposit only upto girl attains 14 yrs age.Thats why interest get credited into acc only after 14yrs.
hi suresh
have confusion over lockin period.The lockin period is
1.completion of 21 yrs from the date of opening this account(Like PPF-15yrs) or
2.completion of 21yrs of Girl’s age.(Ex: If the acc is opened when the girl is 8 yrs,then after 13 yrs acc will get matured as the girl will be completed 21 yrs)
Completion of 21 years of girls age. If one opens at 5 years of girl age, then lock-in is only for 16 years
Why we not support Mr.Modi thought this might be first step of any government that who think about individual family.
this schme definately work if government will pay some pension for girl when she reach to 35 years .
Government will deduct tax at the maturity and will used that money as a pension when she reach to 35 years
Can both SSA and ppf both can be opened on the same girl name?
Yes very much. These two are different schemes.
either none of bank or post office till now dont know about this. what the hell kind of launch from pmo.
It may take some time Pradeep
As you mentioned, unless it is tax free on maturity , it’s definitely not attractive one right.
Hello Suresh. Appreciating for writing this so quickly with less than 5 days from government announcement. Could you also share upon 21 years completion, who can withdrew the money? Parent or Girl Child?
Hi SVK, on 21 years, girl would become major, hence she would be eligible to withdraw money