Post Office Sukanya Samriddhi Yojana Account
Post Office Sukanya Samriddhi Yojana or Sukanya Samriddhi Account is a Government of India-supported savings scheme designed for the girl child in the family. It is a part of “Beti Bachao – Beti Padhao Yojana” and has been initiated to inculcate savings habits among the girl child’s parents/guardians to build a corpus for her future education and marriage expenses. It can be opened by the parents or legal guardians of the girl child till she attains the age of ten years.
The government’s effort to encourage girl child education and saving for them through Sukanya Samriddhi has received immense positive responses and is highly appreciated.
Sukanya Samriddhi Account (SSA) Post Office Key Features
- A maximum of two Post Office Sukanya Yojana accounts are allowed per family. Three accounts may be allowed to be opened in case of the birth of twins/triplets. Parents or legal guardians can open the account till the girl child reaches 10 years of age.
- Sukanya Samriddhi Yojana at the Post Office can be opened with a minimum deposit of Rs. 250 per annually and can deposit up to 1,50,000 rupees in a year. Deposits can be made by cash and/or checks.
- The duration of SSY account is 21 years or till the girl child gets married after 18 years of age. SSA Account holders can keep this account active for 21 years from the date of account opening. After this period expires, the Post Office Sukanya Samriddhi Account will not earn any interest on it.
- This scheme is valid only for a female child who is a resident of India. A girl child with NRI status is not allowed to have an SSY account in her name.
- Sukanya Samriddhi Yojana in the post office allows a partial withdrawal facility after a girl child attains 18 years of age. After that, 50% can be withdrawn from Post Office Sukanya Samriddhi Account for higher education/marriage purposes.
- As mentioned already, the minimum deposit is Rs. 250 per annum is required for at least 14 years to keep the account in active status. If you have not done this then your account will be deactivated and to re-activate need to pay fees of Rs 50 along with a minimum deposit.
How to open Sukanya Samriddhi Yojana Account in Post Office?
Indian Post Office provides a hassle-free and easy way to open an SSA account. Individuals who do not have an account for their daughter with an India post office can open an SSA account by submitting the following documents:
How to fill Post Office SSY Application Form?
Applicants need to provide some important details regarding the girl child. Details of parent/guardian opening/depositing an account on her behalf are also required. The following are the important details in the SSY application form:
- Name of Girl Child (Primary Account Holder)
- Name of biological parent/guardian opening the account (Joint Holder)
- Initial Deposit Amount
- Check/Demand Draft Number and Date (used for initial deposit)
- Date of birth of girl child
- Birth certificate details of primary account holder (certificate number, date of issue, etc.)
- Photo and address proof details of parent/guardian (Driving License, Aadhaar, etc.)
- Current and permanent address (as per parent/guardian ID document)
- Details of any other KYC documents (eg PAN, Voter ID Card, etc.)
Step-by-step process to open SSY account
- Get the account opening form from the post office or you can download it online from the India post office portal. You can also check some other post office sukanya scheme details.
- Fill required details and submit documents with photos
- Deposit minimum amount
- After opening an account, one can deposit through cash, check or demand draft
Benefits of Sukanya Samriddhi Account at Post Office | Sukanya Samriddhi Yojana Scheme | Benefits of Sukanya Samriddhi Yojana
Introduced as part of Beti Bachao, Beti Padhao Yojana initiative, Sukanya Samriddhi Yojana provides several benefits to investors. Some of the key benefits of SSY scheme are as follows:
- Post Office Sukanya Samriddhi Yojana Account offers many benefits hence it is one of the most popular savings schemes
- The interest rate of 7.6% per annum is compounded from 2022-2023 and credited to the account every year.
- If the amount is not withdrawn after the maturity period of 21 years, it will still compound interest as per the rates
- Post Office SSY account is transferable if the depositor decides to relocate. The account can be transferred to any authorized post office at the new location and further steps
- Money deposited into this account is eligible for tax deduction as per Section 80C of the Income Tax Act.
- Higher interest rate- SSY offers a higher fixed rate of return (currently 7.6% per annum for Q4 FY (2022-23)) compared to other government-backed tax saving schemes like PPF.
- Guaranteed Returns- As SSY is a government-backed scheme, it provides guaranteed returns.
- Tax Benefit- Tax-exempt benefits under SSY Section 80C up to Rs. 1.5 lakh per annum.
- Flexible Investment- One can invest a minimum of Rs. 250 in a year and a maximum deposit of Rs. 1.5 lakh in a year. This ensures that people with different economic status can invest in the SSY scheme.
- Compounding Benefit- Sukanya Samriddhi Yojana (SSY) is a good long-term investment scheme as it provides annual compounding benefits. Hence, even small investments can yield good returns in the long run.
- Convenient transfer- SSY account can be freely transferred from one part of the country to another (bank/post office) in case of transfer of parent/guardian maintaining Sukanya Samriddhi account.
Premature closure of Sukanya Samriddhi Yojana account
Only a girl child of 18 years of age can do premature closure for the purpose of marriage expenses. However, the account can be closed and the respective amount withdrawn under certain special cases:
Closure of SSY account due to premature death of account holder
If the registered girl child dies unfortunately, the parents or legal guardians are entitled to claim the final amount and accrued interest in the account. The amount will be transferred to the account nominee immediately. Also, parents or legal guardians are required to get the relevant documents verifying the death of the account holder duly attested by the concerned authorities.
Closure of SSY account due to inability to continue account
Sukanya Samriddhi Account can be prematurely closed if there is any direction from the Central Government regarding the inability of the depositor to carry forward the account. Closure may be processed in case the contribution to the account causes any kind of financial stress to the depositor. Further, proper permission should be obtained from the competent authorities to process account closure and settlement.
It is worth noting that account closure under Sukanya Samriddhi Yojana is provided only in extreme cases like terminal illnesses or medical emergencies.
How to Invest in Sukanya Samriddhi Yojana
You can invest in Sukanya Samriddhi Yojana through your nearest post office or designated branches of participating public and private banks. You have to submit KYC documents like a Passport, Aadhaar Card etc along with an initial deposit through the requisite form and cheque/draft.
Investors need to fill out the Sukanya Samriddhi Yojana (SSY) application form, which can be obtained by visiting the nearest post office or participating public/private sector bank. Alternatively, you can also download the SSA Account Application Form from various sources such as:
- Reserve Bank of India website
- The India Post website
- Individual websites of public sector banks (SBI, PNB, BoB, etc.)
- Websites of participating private sector banks (eg ICICI Bank, Axis Bank and HDFC Bank)
- Although there are multiple sources for downloading the SSY application form, the fields in the form remain the same regardless of the source.
Tax implications of Sukanya Samriddhi Yojana (SSY).
From a tax perspective, SSY investments are designated as EEE (Exempt, Exempt, Exempt) investments. This means that the principal invested, interest earned, and maturity amount are tax-free. Under the existing tax rules of Sukanya Samriddhi Yojana, the benefit of a tax deduction on the principal amount invested under Section 80C of the Income Tax Act, 1961 is Rs 1.5 lakh per annum.
Sukanya Samriddhi Yojana Account Transfer
The major advantage of an SSY account is that it is easily transferable from one part of India to another. Under the existing rules, you can easily transfer this tax-saving deposit account from one Indian post office to another or from one designated bank branch to another for the benefit of a girl child.
To initiate the transfer of your SSY account from a post office, you need to fill out and submit a transfer request form with the postmaster of the Indian post office where your account is currently located. Similar transfer forms are available online and offline if you want to transfer a deposit from one designated bank branch to another.
FAQ’s
Question: Can I take loan on SSY account balance?
Answer No. A loan facility on the SSY account balance is currently not available. Instead, you can avail loan option against PPF.
Question: Is premature closure of Sukanya Samriddhi Yojana account allowed?
Answer Yes. Premature closure of Sukanya account is permitted under certain circumstances. This may include compassionate grounds due to terminal illness, unexpected death of the primary account holder, etc. However, the decision to allow such closure is on a case-by-case basis.
Question: Can I continue to invest in SSY if my daughter and I move to another country?
Answer SSY account has to be closed if the girl child is NRI or loses Indian citizenship.
Question: What is the penalty if I miss the minimum annual payment of my SSY account?
Answer Penalty will be imposed. 50 minimum amount Rs. 250 will not be credited in the account during the financial year.
Question: Is there tax on SSY account interest?
Answer No. SSY is a fully exempt (EEE) investment so the principal amount invested, interest earned and maturity amount are all tax-exempt.
Question: Can we get loan from SSY Account?
No, loan facility is not provided under Sukanya Samriddhi Yojana account.
Question: Is premature closure of Sukanya Samriddhi Yojana account allowed?
Yes. Premature closure of Sukanya account is allowed but subject to certain conditions. This may include reasons such as untimely death of the primary account holder or any other circumstances where the account cannot be continued such as financial stress. However, due permission should be obtained from the designated authority to process account closure and settlement.
Question: Is interest earned on SSY taxable?
No. SSY is a fully tax-exempt investment, so the principal amount, interest earned and maturity amount are exempt from tax.
Question: Can Post Office get partial withdrawal in SSY account?
Yes.