Government of India has stressed on the importance of a girl child under its initiative ‘Beti Bachao Beti Padhao’. Under this initiative, the Government has launched various schemes for the welfare and betterment of the girl child. The Sukanya Samriddhi Yojana (SSY) is one such scheme launched by the Government to promote savings for the future of the girl child.

The Sukanya Samriddhi Yojana is a fixed income saving scheme which can be chosen by parents of a girl child. This is a long term saving scheme which runs for 21 years where parents make annual contributions to build a substantial corpus for their daughter. Since the return is guaranteed, the SSY scheme offers a secured corpus for the girl child’s higher education and/or marriage.

Opening an SSY Account

You can subscribe to the Sukanya Samriddhi Yojana scheme by opening an SSY account in the name of the girl child. This account can be opened either at a bank or at the nearest post office. The Reserve Bank of India has authorized 28 banks of India to offer individuals the facility of opening an SSY Account. So, here’s a list of banks offering Sukanya Samriddhi Account –

List of banks offering SSY accounts to individuals –

  1. State Bank of India
  2. State Bank of Travancore
  3. State Bank of Mysore
  4. State Bank of Hyderabad
  5. State Bank of Bikaner and Jaipur
  6. State Bank of Patiala
  7. Allahabad Bank
  8. Andhra Bank
  9. Punjab and Sind Bank
  10. Bank of Baroda
  11. Canara Bank
  12. Bank of India
  13. Bank of Maharashtra
  14. Corporation Bank
  15. Central Bank of India
  16. Indian Overseas Bank
  17. Dena Bank
  18. Indian Bank
  19. UCO Bank
  20. Syndicate Bank
  21. United Bank of India
  22. Punjab National Bank
  23. Union Bank of India
  24. Oriental Bank of Commerce
  25. IDBI Bank
  26. Vijaya Bank
  27. Axis Bank
  28. ICICI Bank

If you hold a savings account with any of these banks, you can open a Sukanya Samriddhi Yojana Account without any hassles and minimal paperwork. If you, however, don’t have a savings account with any of these authorised banks, you can open an SSY account with any of them. To open the SSY Account, there are two methods which are as follows –

  • Offline method

Under this method of opening an SSY Account, you would have to visit the branch of the bank with which you want to open the account. At the branch, avail the SSY application form and fill in the details of your daughter. Submit the form along with the relevant documents and the amount of deposit. Once the documents and the submitted form is verified by the bank, the SSY Account would be opened.

  • Online method

The online method of opening the SSY Account is offered by many banks wherein you can apply for the account online through the bank’s website. Just visit the official website of the bank and fill up the SSY application form online. Make the deposit online through digital payment modes and the SSY account would be opened. If you have a savings account with any of these banks, you can log into your net banking account and open an SSY account from there also.

Eligibility criteria to open an SSY Account

Whichever bank you choose, the following eligibility criteria should be fulfilled to open an SSY account –

  • You should be a parent or a legal guardian of a girl child
  • The age of the girl child should be below 10 years on the date of opening the account
  • The girl child should be a resident Indian
  • There would be only one account in the name of one girl child
  • You would have to make a minimum deposit of Rs.250 to open and maintain the account
  • The birth certificate of the child on whose behalf the account is being opened and the KYC documents of the depositor should be submitted along with the SSY Account opening application form

Important aspects of the Sukanya Samriddhi Yojana 

Before you open an account with any of the authorized banks, here are some important aspects of the scheme which you should know about –

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  • The scheme has a tenure of 21 years or till the girl child gets married after turning 18 years of age, whichever is earlier
  • Deposits into the SSY Account should be made every financial year for 15 years from the date of opening the account
  • The minimum deposit amount to keep the account active is Rs.250 and the maximum deposit allowed in one financial year is Rs.1.5 lakhs
  • Deposits made towards the SSY account are allowed as a deduction under Section 80C of the Income Tax Act, 1961 up to a limit of Rs.1.5 lakhs
  • Interest earned and the maturity proceeds are also tax-free in nature
  • If the girl child dies during the tenure of the scheme, the SSY Account would be closed immediately and the balance would be paid to the parent or guardian
  • Partial withdrawals are allowed @50% of the accumulated balance only for the higher education of the child or for medical reasons. These withdrawals are allowed only after the child attains 18 years of age
  • You can transfer the SSY Account from one branch of the bank to another
  • You can also opt to open the SSY Account through a post office
  • The interest in the PPF Account is fixed by the Government. It is also reviewed every quarter and might change. For the quarter starting 1st October 2020, the interest on the scheme is 7.1% per annum compounded annually. This rate of interest remains the same across all banks

So, if you have a daughter, start planning for her future by investing in the Sukanya Samriddhi Yojana scheme. You can earn guaranteed returns and also create a tax-efficient corpus for funding the higher education or marriage of your daughter without a financial strain.

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