Sukanya Samriddhi Yojana Benefits & Interest Rates in 2023

The government increased the interest rates for Sukanya Samriddhi Yojana by 40 paise for the quarter April-June 2023 which now became 8%.

Sukanya Samriddhi Yojana:

Sukanya Samriddhi Scheme has been launched by the government of India for the girl child in 2015 by the Ministry of Women and Child Development.
Under the Sukanya Samriddhi Yojana, an account in the name of the girl child has to be opened by their natural or legal guardian from the birth of the girl till she attain the age of 10 years.
The minimum and maximum deposit amount is 250 and Rs.1,50,000 per fiscal year.
If the customers fail to deposit that minimum amount then the penalty of Rs.50 will be imposed.
After the payment of penalty, the account opened under the scheme became reactivated.
The Sukanya Samriddhi Yojana account’s term lasts for 21 years from the date of opening or until the account holder’s marriage whichever is earlier.

Suknya Samriddhi Yojana Interest Rates:

The interest rate for Suknya Samriddhi Yojna for the quarter of April-June 2023 is 8% which has risen up by 0.4% from the last quarter of January-March 2023 which was 7.6%.

Some of the points about the interest rates of Sukanya Samriddhi Yojana:

Interest is payable at the earliest.
Interest is directly transferred to the account of the girl at the end of every financial year.
Interest rate is decided by the government and is changed every quarter.
No interest will be provided if the girl becomes an NRI.

Calculation of Interest of Suknya Samriddhi Yojana:

The formula used to calculate the interest of Sukanya Samriddhi Yojana:

I = P(1+R/100)^N

Where, I = Interest

P = Principle Invested

R = Rate of Return

N = Number of Years

The calculation of interest on Suknya Samriddhi Yojna is done every year.

Eligibility Criteria for Sukanya Samriddhi Yojana:

There are some essentials to open an account under the Sukanya Samriddhi Yojana:

Account of the girl child can be opened by their natural parents or legal guardian.
The girl child ought to be under 10 years at the time of opening account.
The account should be operational till the girl child becomes 21 years old.
The minimum and maximum amount to be deposited in the account is 250 and Rs.1,50,000.
An individual girl child cannot have numerous Suknya Samriddhi Accounts.
Only two Suknya Samriddhi Accounts are permitted per family i.e. one for each.

Deposits made under the Sukanya Samriddhi Yojana:

Deposits in the bank account of the girl child registered under the Suknya Samriddhi Yojna can be made through any of the following:

Online transfer/NEFT.
Demand Draft
Cash
Cheque

How to Open Sukanya Samriddhi Yojana:

To get the benefits of the Sukanya Samriddhi Yojana, the girl child who is below the age of 10 year must have opened their account either with the bank or post office.

Steps to open Sukanya Samriddhi Yojana:

Visit the nearest bank or post office.
Fill the application form of Suknya Samriddhi Yojna which is SSA-1 form.
This form can also be downloaded online.
After filling the form, submit the form with the desired documents which are:

Birth certificate of the girl child.
Identity proof of the parents or guardian.
Address proof.

After submitting the documents, pay the first deposit which is minimum of Rs.250.
SSY account will be opened and passbook will be issued by the bank or post office for the account.

Benefits provided under Suknya Samriddhi Yojana:

High Interest Rates: Suknya Samriddhi Yojna offers high interest rates which is currently 8% in comparison to other government schemes and bank deposits.
Guaranteed Return: Suknya Samriddhi Yojna is a government’s scheme which provides guaranteed return.
Tax Benefits: SSY provides tax deduction benefits under section 80C upto Rs.1.5 lakh annually.
Flexible Investment: Under SSY there is no fixed amount that is to be deposited in the account of the beneficiary but it should be minimum Rs.250 and maximum Rs.1.5 lakh.
Benefit of Compounding: SSY is a scheme of long-term investment as it provides the benefit of annual compounding.
Convenient Tranfer: SSY can be freely transferred from one part of the country to another in case of transfer of parent/guardian.

Withdrawal Rules for Sukanya Samriddhi Yojana:

Sukanya Samriddhi Yojana Account has a maturity period of 21years or at the time of marriage whichever is earlier but it can be withdrawn for the following reasons with certain rules:

Withdrawal for the Education:

The girl child can withdraw from the Suknya Samriddhi Account for her further studies if she reached the age of 18 years and qualified the 10^th standard.
For the purpose of education only 50% of the amount available as of the previous year can be withdrawn.

Premature withdrawal in case of marriage:

When the girl attains the age of 18 years and is getting married, she have to apply one month before or three months after the marriage to withdraw for the purpose of marriage and identity proof and marriage certificate must be submitted by her.

Premature Withdrawal in other cases:

In case of death of the girl chid, the amount can be withdrawn by her parents/guardian after submitting the desired documents.
The account will be closed if the girl is no longer a citizen of India.

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