Sukanya Yojana details – How to make the most out of it?

Sukanya Samriddhi Account - How to make the most out of itSukanya Yojana details – How to make the most out of it?

In an effort to save girl child and also for their better future, the government of India declared a number of campaigns, schemes and provisions. One such campaign is ‘Beti Bachao Beti Padhao’ under which Sukanya Samriddhi Yojana (SSY) was launched in January 2015. Let us recap Sukanya Samriddhi Account, its features, new rules etc., We would also provide certain tips on how to make the most out of Sukanya Samriddhi Account Yojana Details in this article.

Also read: How to get guaranteed Pension Plan with LIC Jeevan Shanti?

What is Sukanya Samriddhi Account Yojana?

Sukanya Samriddhi Yojana is a small deposit scheme meant only for the girl child. Under this scheme, Sukanya Samriddhi Account can be opened anytime from her birth till before she turns 10 years of age. Currently, it is providing 8.5% of interest rate. The amount invested is eligible for exemption in income tax u/s 80C up to Rs 1.5 Lakhs.

Sukanya Yojana details and Key Features

The key features of Sukanya Samriddhi Account are as follows:

The account can be opened in post-office or authorized branches of commercial banks.

One can make ‘n’ number of deposits in a financial year, but the total deposits cannot exceed Rs. 1.5 lakh in a year.

The account can be opened by the natural or legal guardian in the name of girl child from her birth till she turns 10 years of age.

Natural or legal guardian of a girl child can be allowed to open the account for two girl children only. The third account in the name of the girl child can be opened  in the event of the birth of twin girls, as second birth or if the first birth itself results in three girl children

The account will remain operative for 21 years from the date of its opening or till the marriage of the girl after she turns 18 age.

The scheme comes with an exempt-exempt-exempt (EEE) status. The annual deposits qualify for section 80C and the interest and maturity benefits are non-taxable.

How to open Sukanya Samriddhi Account Yojana?

The process of opening Sukanya Samriddhi account Scheme remains almost same with any bank or post office. Here is the common process.

Step-1: Visit any commercial bank or post office

Step-2: Fill the SSA Form

Step-3: Submit the form along with basic documents like a birth certificate of child, Photo ID of parents/guardian, Address proof, Photograph of parent  and girl Child

Step-4 – Deposit cash of Rs 1,000

Your SSA account is opened and you can make further deposits.

How much deposit can be made in Sukanya Samriddhi Account?

The account can be opened with a minimum of Rs 1,000 and after that any amount ranging from minimum Rs 100 and a maximum of Rs. 1.5 lakh can be deposited in the multiples of 100. The total amount deposited in an account cannot exceed Rs. 1.5 lakh in one financial year. 

Deposits can be made in the account till the completion of 15 years from the date of opening the account. For example- an account is opened for an 8 year old girl. Deposits can be made till the girl turns 23. After that, between 23 to 29 years of age, no fresh deposits can be made, but the interest will continue to be earned on the balance of the account.

How the interest is calculated?

The interest rates on Sukanya Samriddhi account is governed by the central government. It fixes the interest rates on the quarterly basis. The interest is deposited in the account on the yearly basis after compounding. The interest is calculated for the calendar month on the lowest balance in an account maintained between the end of the 10th day and the end of the month.

What are premature withdrawal rules in Sukanya Samriddhi Account?

For the purpose of higher education of the girl child, partial withdrawals of up to 50% of the balance of the account are allowed. However, the withdrawal is allowed when the account holder turns 18 years of age. For this purpose, a written application along with documentary proof in the form confirmed admission offer from an educational institute. Further, the withdrawal amount is restricted to the actual demand of fee and other charges as mentioned in the relevant fee slip.

New Rules in Sukanya Yojana details

Since its inception in January 2015, few rules of Sukanya Samriddhi Account have been amended. These new rules came into effect from July 6, 2018.  Let us go, through them.

1) A girl child is eligible for SSY account only when she is a resident of India. Non-residents girl children are not eligible for opening this account. In fact, after opening the account, if the status of the child changes to non-resident, no interest shall be paid from the date of change in citizenship.

2) He minimum amount to be deposited every year has also been lowered to Rs 1,000 per annum.

3) The term of the investment has been increased from 14 years to 15 years.

4) The option of e-transfer has been introduced.

5) In case of default, the penalty provision of Rs. 50 per year, along with the minimum yearly contribution of Rs. 1000 remains the same. But now, if the penalty has not paid the entire deposit, including the deposits made before default will receive interest at post-office savings bank account rate (currently it is 4%). If excess interest has been paid, the entry will be reversed. 

6) Premature closure on grounds of medical exigencies are not allowed now before the completion of five years. If the holder wishes to withdraw before that, he has to settle for an interest rate of a post-office savings bank account.

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Sukanya Yojana details – How to make the most out of it?

One can extract the maximum benefit out of Sukanya Samriddhi Account by following the few basic tips-

1) If the parents are depositing the amount in installments, they should pay before the 10th of every month. By doing so, they get the interest for that month also otherwise the amount deposited gets wasted in that month.

2) If possible, they can deposit the entire amount in one go instead of installments and too before the 10th of April to claim the maximum interest in the financial year.

3) The parents can open the account as soon as the girl child is born without wasting any time. For this, get the birth-certificate of girl child immediately.  This way they can build a good amount for the girl child of maturity.

Conclusion: With its attractive interest rates and no-risk factor, it continues to be one of the best debt investment instrument tools for investors who want to invest for girl child. 

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Sukanya Yojana details – How to make the most out of it

Suresh KP


  1. Hi Suresh,
    I just came from onsite. My daughter is born in USA, by birth she is US citizen. Can I open Sukanya Samriddhi account for her? She is 2.5 years old right now.

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