Sukanya Samriddhi Yojana – Tax-Free Small Savings Scheme for a Girl Child

by Shiv Kukreja on March 3, 2015

in Investments

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at skukreja@investitude.co.in

“Beti Bachao, Beti Padhao” is the mantra with which Prime Minister Narendra Modi launched Sukanya Samriddhi Yojana on January 22nd this year. Later on, the government issued a notification to allow 80C exemption equal to the amount invested in the scheme up to Rs. 1,50,000, which is also the maximum amount one can invest in this scheme in a financial year.

Now, the Finance Minister in his budget speech has proposed to make the interest component as well as the maturity proceeds as tax-free. I think this proposal has made this scheme to be the best small savings scheme available to the Indian investors. Yes, even better than our golden scheme of Public Provident Fund (PPF). So, what is this scheme all about? Let’s check.

Sukanya Samriddhi Yojana is a small savings scheme which can be opened by the parents or a legal guardian of a girl child in any post office or authorised branches of some of the commercial banks. The girl child is called the “Account Holder” and the guardian is called the “Depositor” in this scheme.

Before I compare this scheme with PPF, let us first check the important features of this scheme.

Salient Features of Sukanya Samriddhi Yojana

Who can open this account? – Parents or a legal guardian of a girl child who is 10 years of age or younger than that, can open this account in the name of the child. For initial operations of the scheme, one year grace period has been provided to make it 11 years of age. With this one year grace period in age, which is valid up to December 1, 2015, you can get this account opened for a girl child who is born between December 2, 2003 and December 1, 2004.

9.1% Tax-Free Rate of Interest – This scheme has been flagged off with a 9.1% rate of interest, higher than that of PPF which stands at 8.7%. But, this rate is not fixed at 9.1% for the whole tenure and is subject to a revision every financial year like all other small savings schemes, including PPF.

Prior to the budget announcement, 9.1% annual return seemed unattractive, but not anymore, as it has been made tax exempt now. Interest amount gets added to your balance amount in the account and compounded either monthly or annually, as per your choice. Monthly interest compounding will be done only on your balance amount on completed thousands.

Duration of the Scheme – The scheme will mature on completion of 21 years from the date of opening of the account. If the account is not closed on maturity after 21 years, the balance amount will continue to earn interest as specified for the scheme every year. In case the marriage of your daughter takes place before the maturity date i.e. completion of 21 years, the operation of this account will not be permitted beyond the date of her marriage and no interest will be payable beyond the date of marriage.

Deposit for 14 years only – Though the scheme has a duration of 21 years, you are required to make contributions only for the first 14 years, after which you need not deposit any further amount and your account will keep earning the interest rate applicable for the remaining 7 years.  

Premature Closure – The account can also be closed prematurely as your daughter completes 18 years of age provided she gets married before the withdrawal. As the maximum permissible age of the girl child is set as 10 years, the scheme effectively carries a minimum duration of 8 years i.e. 18 years of exit age – 10 years of entry age.

Partial Withdrawal – It is also allowed to withdraw 50% of the balance standing at the end of the preceding financial year, but only after your daughter attains the age of 18 years. So, effectively it has a complete lock-in period of at least 8 years, before which you cannot take out any money for any purposes.

Minimum/Maximum Investment – You need to deposit a minimum of Rs. 1,000 in a financial year to keep your account active. Failure to do so will make your account inactive and it could be revived only after paying a penalty of Rs. 50 along with the minimum amount required to be deposited for that year, which currently stands at Rs. 1,000.

Also, you can invest a maximum of up to Rs. 1,50,000 in a financial year. You can make your contribution to this account in as many number of times as you like.

How many accounts can be opened? – You can open only one account in the name of one girl child and a maximum of two accounts in the name of two different children. However, you can open three accounts if you are blessed with twin girls on the second occasion or if the first birth itself results into three girl children.

Nomination Facility – Nomination facility is not available in this scheme. In an unfortunate event of the death of the girl child, the account will be closed immediately and the balance will be paid to the guardian of the account holder.

Documents Required – Birth Certificate of the girl child, along with the identity proof and residence proof of the guardian, are the mandatory documents required to open an account under this scheme. You can approach any post office or authorised branches of some of the commercial banks to get this account opened.

Sukanya Samriddhi Yojana vs. Public Provident Fund (PPF)

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Budget 2015 has made this scheme quite attractive for the investors. If you’ve already exhausted your PPF deposit limit, want to save for your girl child’s marriage or higher education and have spare money to invest in this scheme, then this scheme provides you one more excellent avenue of safe investment with high returns. You can wait for the next financial year’s rate of interest to get announced anytime this month, if it remains higher than PPF, just go for it.

Application Form to open a Sukanya Samriddhi Account

List of authorised commercial banks where you can get this account opened

{ 55 comments… read them below or add one }

Arunavo Mitra December 5, 2015 at 12:34 PM

Sir,

My daughter’s D.O.B -2nd December 2015 is she eligible for these scheme?
If not, any idea to increase the scheme limit?

Reply

Sharmy December 12, 2015 at 10:31 AM

My daughter DOB is 16 September 2005. Whether it is possible to open account in Sukanya scheme.

Reply

Hanit January 6, 2016 at 5:32 PM

Hi Sharmy,

You just missed it by few months. Girl’s age should be less than 10 years to enroll for this scheme.

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PN Lakshmana Reddy September 19, 2016 at 8:44 PM

On the advice of the Post Master, we have opened SSA in the name of my Son’s daughter who is a PIO(person of Indian Origin). The SSA is opened by her Father who is now staying in India with family. After seeing the website of SSA, Govt.of India, a doubt has come to my mind about the eligibility of PIO for SSA . Pl. clarify whether the advice of Post Master is correct and any problems arise at a later date while withdrawing the maturity amount after 21 years.I request to reply my E mail ID soon.
PN LAKSHMANA REDDY

Reply

VEER ARJUN UPADHYAY December 14, 2015 at 3:32 PM

YEARLY PAYMENT CAN BE DONE OR NOT INSTEAD OF EVERY MONTH???

Reply

VEER ARJUN UPADHYAY December 14, 2015 at 3:34 PM

Dear Sir

Is it possible to submit yearly payment instead of Monthly?

Regards

Veer Arjun Upadhyay

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mukesh December 15, 2015 at 2:03 PM

My daughter dob 30 /10/2006 whether it is possible to open account in Sukanya scheme.

Reply

mukesh December 15, 2015 at 2:05 PM

My daughter dob 01/02/13 whether it is possible to open account in Sukanya scheme.

Reply

sachin gupt December 26, 2015 at 10:35 AM

My Daughter DOB is 21/12/2015 can we open account in sukanya Scheme if yes please sugest me from where apply on this

Reply

omprakash sharma December 24, 2016 at 4:39 PM

According to govt rules , you can definitely apply for this scheme . you can go to nearest bank otherwise post office . they will be provide complete information. there is no issue. you can contact to me if you have any issue / problem .

Reply

sachin gupta December 26, 2015 at 10:37 AM

My daughter dob 21/12/2015 whether it is possible to open account in Sukanya scheme if yes so please suggest me where apply this

Reply

suresh marathe December 27, 2015 at 11:42 AM

My daughter DOB is 11 September 2003. Whether it is possible to open account in Sukanya scheme.

Please replay.

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Ajay kailash pandey December 27, 2015 at 4:16 PM

meri beti ka d o b 17november2015hai agar koi achhi scheme hai to btaye

Reply

Rajesh December 29, 2015 at 3:03 PM

My daughter dob 01.04.14 whether it is possible to open account in Sukanya scheme.

Reply

Rajesh December 29, 2015 at 3:10 PM

My Daughter dob 01.04.15 whether it is possible to open account in sukanya yojna

Reply

Sunita Agarwal January 2, 2016 at 9:02 PM

My daughter’s DOB is 1/10/2004.Whether is it possible to open account in sukanya samridhi scheme.

Reply

Sunita Agarwal January 2, 2016 at 9:04 PM

My daughter’s DOB is 1/10/2004.Whether is it possible to open account in sukanya samridhi scheme.

Pls reply as fast as you can

Reply

Minni January 11, 2016 at 2:16 PM

Hi

My daughter’s DOB is 01-Feb-2002. Please suggest any other saving scheme is like sukanya samriddi is available.
Now she is 13 years. Can we pay the amount for the years for 3 years in one installment and open the account in sukanya samriddi since the age limit is 10 years

Thanks

Reply

Minni January 11, 2016 at 2:24 PM

Hi

1. My daughter’s DOB is 01-Feb-2002. She is 13 year old now so and not eligible for Sukanya Samriddhi. Please suggest any other scheme like Sukanya Samriddhi is available for her.
2. Since she is 13 years old could we pay the pending amounts of 3 years and open a Sukanya Samriddhi account.

Thanks

Reply

sukesh chander January 17, 2016 at 3:11 PM

god gave me two beautiful baby boy any scheme for boy

Reply

Gajendra pandey January 24, 2016 at 2:54 PM

My daughter dob 04/11/2015 whether it is possible to open account in Sukanya scheme if yes so please suggest me where apply this

My second daughter Dob 25/10/2011 it possible to open account in sukanya scheme plz suggest

Reply

suresh soni January 25, 2016 at 2:40 PM

Sir post office me on line transfer start hua ?

Reply

cmcc February 3, 2016 at 12:56 AM

my daughter is now 7 years old.
que 1 – i pay yearly 1000 and which amt get with which in years ?
que 2 – i pay monthly 1000 and which amt get with which in years ?
please reply……

Reply

Ashok Gohil February 4, 2016 at 9:37 PM

At a time of maturity any TDS will be deducted???

Reply

RAJES KUMAR February 5, 2016 at 6:51 PM

by whom this sukanaya yojana is opened?
or
who is isponsored this schems?

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Raja February 8, 2016 at 9:17 PM

my daughter is studying in USA and we are staying in USA but Indians, will we are eligible for open account

Reply

sai February 19, 2016 at 12:50 PM

My daughter dob 27.05.2015 whether it is possible to open account in Sukanya scheme.

Reply

syediliyas February 23, 2016 at 4:43 PM

Dear sir I want to open.this account , can you tell me the what is the rate of interest in post office and any nationalise banks means I want to know the rate of interest it’s same in post office and banks or different interests in different banks please tell me

Regards

Syediliyas

8050229511

Reply

Rohit Saxena February 24, 2016 at 5:22 PM

Sir, maine apni beti ke naam IOB me sukanya yojna 20-08-2015 ko li thi ab mijhe bank change krna hai to kya krna padega?

Reply

Rohit Saxena February 24, 2016 at 5:30 PM

sir,
maine sukanya scheme august, 2015 me apni beti ke naam se indian ovreseas bank, Lucknow me li thi. Ab mujhe bank change krna hai to kya krna padega?

Reply

Azeem khan February 28, 2016 at 4:04 PM

My daughter age is 2 year can i take this scheme

Reply

NILESH HUNDARE March 7, 2016 at 12:09 PM

Hello sir,

if iam not able to deposit or carry suknya account or i want closed that account then what is the prosses please help me.
and how to take my deposited mony back.

Reply

Latha April 6, 2016 at 11:26 PM

Hi my daughter was born on May 2015 nd I’ve already opened an account in post office at Dec 2015. Nd tisSukanya Samriddhi Yojana plan was started on jan tis year. Nd how could I convert d previous plan to tis new scheme. Kidly guide me.

Reply

Swami devanand gupta May 16, 2016 at 11:46 PM

Sir
Kaya sukanya samridhi yojana me Jo abhitak account open nahi karaye hai.wah bykti new account open kara sakte hai.ya nahi ki yah Ascham chalu nahi hoga .

Reply

Rcsoni July 3, 2016 at 3:04 PM

Sir kaya sukanya samridhi yogana after 14 year who depsoit rs.2000 total amt after 14 year pl calculate amt

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Poonam June 25, 2016 at 2:04 PM

Dear Sir,
I am staying in Dubai and visiting India next month.
Pls want to check if I am eligible for this scheme. I have 3 years old daughter.

Reply

vikas bindal June 29, 2016 at 9:14 AM

i want to open a ssa for rs 1000 monthly. is it possible to deposit excess amount in serve months and hou benifit calculated for excess deposit

Reply

vikas bindal June 29, 2016 at 9:23 AM

i want to open a ssa for rs 1000 monthly. is it possible to deposit excess amount in serve months and how benifit calculated for excess deposit

Reply

Muhammed Avesh June 29, 2016 at 4:11 PM

Sal me 1000 jama karne par ladki ka 21 year pura hone par kitna paise milega total batao please

Reply

Sanjay Pandit August 25, 2016 at 6:34 AM

My daughter’s age is 8 and I would like to deposit. 5000/- monthly. What Will be the grand total amount for 21 yrs of her age. Plz guide me.

Reply

sachin ratate July 7, 2016 at 1:22 PM

dear sir’

i already open my child account on sukanya samridhi yojana, with manthly 1000 Rs. , so after 21 years i have to get maturity only amount ( as per interest ) plus 60000.000 Rs. or what

Reply

Vipin Kumar September 1, 2016 at 7:44 AM

Dear sir i have a number of queries, which are given as follows.
1. As you said that one have to deposite in this scheme only for the first 14 years, then if i am correct, the capital investment at that time will be equal to the deposite+compound interest of 14 years?

2. Can someone continue depositing in the scheme after the 14 years for getting more interest/benefits?

3. Why are the muturity benefits differ on monthly and yearly basis payments for the same amount?

4. In case of unfortunate death of the child, the amount shall be paid to the parent(s), would it be included of intetest gained till the date.

Reply

reshma October 4, 2016 at 8:17 PM

Sir , i had open sukanya a/ c last year in post office but now i want transfer this to my bank a/ c ??? But agent of post office said that a/ c will not be transferble ?? What to do ???

Reply

Nand Lal January 19, 2017 at 7:37 PM

Sir/Madam,
Meri bchi ks janam 7-7-2016 ko hua hai. Kya hum ish scheme ko join kr skte hai. Ish scheme main kitna paisa lgana hai or kb tk paisa dena hai. 21 years ke baad kitna paisa milega . Pls puri information btaie.

Reply

sushil January 20, 2017 at 4:23 PM

my daughter dob 07.08.2009 please deatils the plan

Reply

Gurmeet Singh February 8, 2017 at 11:54 AM

Dear sir,
We want to open this account in Rajesthan State but my id and Address proof is made from Delhi then We can open this account in Rajesthan if not, then what should we do for it.

Thank you

Reply

Ram Karan Sahu February 27, 2017 at 10:27 PM

Dear sir,
My daughter is DOB 16 April 2010
Pls all information given

Reply

Mohammed Musa April 5, 2017 at 1:19 PM

just i want to know about my daughter she is now 16 years which one for her best policy

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Nitin Sinkar May 4, 2017 at 9:14 PM

I just want to know if father will be died after 3 or 4 year what will benefit my doughter

Reply

Trupti Jogi June 3, 2017 at 3:54 PM

My elder daughter is 11 years so can she get this policy or get me better option against it.

Reply

Rajeshwari. S. June 9, 2017 at 10:55 AM

My daughter DOB is 24 March 2008. Whether it is possible to open account in Sukanya Samriddhi Yojana Scheme.

Reply

Prahlad Sankarabandi June 25, 2017 at 2:09 PM

My daughter’s dob is 01-12-2007, can we apply for sukanya yojana in any bank? Please reply to my query.

Reply

Dharmaraj rajak July 5, 2017 at 9:21 AM

Dear sir
Sukanya yojna ke tahat yadi beech me amount nahi bhar saka to usko nikalne process kya hai please help me

Reply

sunil July 6, 2017 at 9:13 AM

is it possible i can deposit ?30000 one year
nd in next year i deposit ?40000

Reply

sunil July 6, 2017 at 9:14 AM

?30000 in 1st year
nd
?40000 in 2nd year

Reply

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