The Post Office Sukanya Samriddhi Yojana is a Government of India backed savings scheme designed for the girl child in a family. It is a part of “Beti Bachao – Beti Padhao Yojana” and as initiated to inculcate the habit of savings in parents/guardians of the girl child to build a corpus for her future education and marriage expenses. It can be opened by the parent or legal guardian of a girl child until she reaches ten years of age.
The government’s effort to encourage a girl child’s education and saving for them has received an immensely positive response through the Sukanya Samriddhi and is highly commendable.
Key Features of Post Office Sukanya Samriddhi Account
- A maximum of two Post Office Sukanya Yojana accounts is allowed per family. Opening of three accounts can be allowed in the case of the birth of twins/triplets. The account can be opened by parents or a legal guardian for a girl child until she attains an age of 10 years.
- A Sukanya Samriddhi Yojana in Post Office can be opened with a minimum deposit of Rs. 250 per year and the maximum deposit can go up to Rs.1.5 lakh in a year. Deposits can be made through cash and/or cheques.
- The tenure for an SSY account is 21 years or until the girl child marries after the age of 18. The account can be kept active for 21 years from the date of opening the account opening date. Once this period is over, the Post Office Sukanya Samriddhi account doesn’t earn any interest on it.
- This scheme is only valid for a girl child who is an Indian resident. A girl child with non-resident Indian status is not allowed to have an SSY account under her name.
- ASukanya Samriddhi Yojana in Post Office allows the partial withdrawal facility once the girl child attains the age of 18 years. Post that, 50% of the funds can be withdrawn from Post Office Sukanya Samriddhi account for the purpose of higher education/marriage
- As mentioned earlier, a minimum deposit of Rs. 250 is required per year till at least 14 years to keep the account in an active state. If this requirement is not met in a year, the account will be deactivated and can be reactivated by paying a fee of Rs.50 along with the minimum deposit amount.
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How to open a Sukanya Samriddhi Yojana account in Post Office?
Post Office provides an easy and hassle-free way of opening of SSY account. Individuals that don’t have an account with Post Office can open an SSY account by submitting the following documents:
How to fill Post Office SSY Application Form?
Applicants need to provide some key details regarding the girl child. Details of the parent/guardian who is opening the account/making deposits on her behalf are also required. The following are the key details that are present in the SSY Application Form:
- Name of the Girl Child (Primary Account Holder)
- Name of the biological Parent/Guardian opening the account (Joint Holder)
- Initial deposit amount
- Cheque/Demand Draft Number and Date (used for an initial deposit)
- Date of Birth of girl child
- Birth Certificate details of the primary account holder (Certificate number, date of issue, etc.)
- Photo and address proof Details of Parent/Guardian (Driving License, Aadhaar, etc.)
- Present and Permanent Address (as per ID document of parent/guardian)
- Any other KYC Documents details (such as PAN, Voter ID card, etc.)
Stepwise Process to open an SSY account
- Get the account opening form from the post office or you can download it online from the Indian post office portal. You can check some other Post Office Sukanya Yojana details as well.
- Fill in the required details and submit the documents along with photos
- Deposit the minimum amount
- After opening the account, one can make deposits by cash, cheques or demand draft
Benefits of Sukanya Samriddhi Account with Post Office
- A Post Office Sukanya Samriddhi Yojana account offers a plethora of benefits which is why it has become one of the most popular savings schemes
- An interest rate of 7.6% per annum is compounded as of 2020-21 and credited into the account every year.
- If the amount is not withdrawn after the maturity period of 21 years, it will still keep compounding the interest as per the rates
- The Post Office SSY Account is transferable In case the depositor decides to relocate. the account can be transferred to any other authorized post office in the new location and further actions
- The funds deposited into this account are eligible for a tax deduction as per Section 80C of the Income Tax Act.
Post Office Sukanya Samriddhi Account – Frequently Asked Questions
Ques. Does SSY provide loan facility?
Ans. No, loan facility is not provided under Post Office Sukanya Samriddhi Yojana account.
Ques: Is premature closure of the Sukanya Samriddhi Yojana Account allowed?
Ans: Yes. Premature closure of the Sukanya account is allowed but is subject to certain conditions. This may include reasons such as the untimely demise of the primary account holder or any other conditions where they are unable to continue the account such as financial stress. However, proper permission from the designated authority must be obtained to process the closure and settlement of the account.
Ques. Is the interest earned on SSY taxable?
Ans: No. SSY is a completely tax-exempt investment, therefore the principal amount, the interest earned and the maturity amount are all be exempted from tax.
Ques. Can partial withdrawal be availed in Post Office SSY account?
Ans. Yes, but only after the account holder (girl child) reaches the age of 18. After the account holder reaches the age of 18, partial withdrawal up to 50% of the account balance is allowed, to meet the education expenses or marriage expenses.