Sukanya Samriddhi Yojana Calculator: Eligibility, Age Limit

The Indian government initiated a social campaign on January 22, 2015, to tackle the problem of the declining child-to-sex ratio in our country. “Save girls, educate the girl child” is the message delivered by the Beti Bachao Beti Padhao (BBBP) initiative. The Ministry of Women and Child Development, the Ministry of Health and Family Welfare, and the Ministry of Human Resource Development are collaborating to manage this national project.

Table of Contents

Aims of the Sukanya Samriddhi Yojana (SSY)

To put an end to the practice of sex determination and gender discrimination against children.
To ensure protection and survival of females.
To ensure greater female participation in education and other areas.

Yojana Sukanya Samriddhi Age Limit and Maturity Period

Here are the details of Sukanya samriddhi yojana age limit and maturity period:

SSY Account Opening

There can be one SSY account only for each girl child. Any post office or branch of an authorized commercial bank can open an SSY account. It can be opened daily until the girl child is ten years old.

SSY Beneficiary

Right from when the account is opened until its maturity or its closure, all girl children residing in India could receive benefits under SSY.

Deposits Under SSY

Until the age of 18, the guardian can deposit and administer the account. From the age of 18, the girl child will have to operate the sukanya samriddhi yojana scheme account. The SSY account can have a minimum deposit of Rs. 250, followed by every multiple of Rs. 50, and a maximum deposit of Rs. 1,50,000 for each financial year up to 15 years. Cash, checks, demand drafts, or electronic transfers can all be utilized to make deposits.

Interest on Deposits Under SSY

The details of sukanya samriddhi yojana interest rate 2024 are:

For the second quarter of FY 2024–2025, which is July 1, 2024, to September 31, 2024, the rate of interest is 8.2% p.a. There is no tax on the interest earned on this account.
If the whole deposit in the “Account under default” is not regularized within the time limit, interest will be paid up to the maturity date of the account. If the penalty of Rs. 50 per year of default is paid, an “account under default” can be regularized within 15 years of opening of the account.
After the tenure of the SSY, i.e., 21 years from the date the account is opened, no interest is payable.
Once the girl child is no longer a citizen or resident of India, no interest is levied on any deposit in excess of the ceiling.

SSY Maturity Period

SSY’s maturity duration is 21 years from the date of opening the account or, in case she gets married after she is 18 years old, after 18 years. Contributions should only be made for the initial 15 years, however. The SSY account will then continue to earn interest until maturity.

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Sukanya Samriddhi Yojana Details for Tax Advantages

Also, the sukanya samriddhi yojana scheme has been provided with the following tax benefits to encourage investment in SSY:

Section 80C permits deduction for investment in the SSY scheme to a maximum of Rs 1.5 lakh.
As stated in Section 10 of the Income Tax Act, the interest which accrues in this account and is compounded every year is also exempt from tax.
Moreover, income tax does not apply to proceeds received at maturity or withdrawal.

Advantages of the Sukanya Samriddhi Yojana

The benefits of Sukanya Samriddhi Yojana are:

Low Minimum Deposit: Every fiscal year, you will have to deposit a minimum amount of Rs. 250 into an SSY account. Any amount up to Rs. 1.5 lakh can be deposited at a time that suits you best in every fiscal year. All sections of society seem to feel that the payments are quite modest. The account will be brought back to normal after a penalty of only Rs. 50 is levied on the lost minimum payment of Rs. 250, even if you cannot pay for a year.
Attractive Interest Rate: SSY accounts have one of the highest compound annual interest rates among modest savings plans, at 8.2%.
Tax Advantage: Under the Income Tax Act, Section 80C enables you to avail of a full tax deduction for your initial investment of up to ₹1.5 lakh each year. The maturity amount and interest are exempted from taxes.
Long Tenure: Invest in your daughter’s future by letting her grow up for 21 years or until she gets married after 18 years, whichever is earlier.
Educational Expenses: In order to cover your girl child’s education expenses, you can withdraw 50% of the account balance as of the end of the previous fiscal year. This can only be accessed by providing proof of admission after the girl child has attained the age of eighteen or completed the tenth grade.
Guaranteed Returns: SSY is a government-backed scheme, hence on maturity, returns are assured.
Easy Transfer: The SSY account can be transferred from any post office to a bank or vice versa in India.

Calculation of Sukanya Samriddhi Yojana Interest

The minimum balance in the calendar month—that is, the period between the fifth day of the month and the last day of the month—is utilized to calculate interest for the SSY account.

At the end of each fiscal year, the interest will be credited once.

In general, you can calculate the interest accrued on an SSY account by the formula below:

A = P (1 + r/n) ^ nt

Here:

P represents the initial deposit.

r is the rate of interest; n is the period of years that the interest is compounded.

t = Years

n = number of times interest compounds in a year

A = Total at maturity

If you don’t want to do physical calculations, you can use the sukanya samriddhi yojana calculator for more accurate results.

Samriddhi Sukanya Eligibility for Yojana

Only a girl child’s parents or guardians are eligible to open an SSY account.

While opening the account, the girl child should not be above the age of ten years and she should be living in India.

A girl child can only have one account.
A family is only allowed two SSY accounts, one per girl kid.
If a girl child is born as a twin or triplet at the first or second birth of a family, more than two girls can be made into a Sukanya Samriddhi account.

How to open a Sukanya Samriddhi Yojana Post Office Account?

You can open a sukanya samriddhi yojana post office account, follow these steps:

In order to open an account, visit the bank or post office branch.
Submit supporting documents and fill out the application form with relevant information.
Pay the first amount through demand draft, cheque, or cash. The amount may be between Rs. 250 and Rs. 1.5 lakh.
Your payment and application will be accepted by the post office or bank.
Your SSY account will be opened after accepting the payment and application. To mark the opening of the account, a passbook will be issued.

How to fill Sukanya Samridhi Yojana form?

Follow the steps below to fill Sukanya Samriddhi yojana form:

Write the post office/bank branch name and postal address under “To the postmaster/manager” section.
Paste your photograph in the space provided.
Write the name of the applicant next to “I/We” and mention the sukanya samriddhi yojana in the following space.
Enter the amount you are depositing in numbers and words and then choose the payment mode.
If you are using a cheque or DD, mention the number and date in the space provided.
Mention the depositor’s name and date of birth.
Write the guardian’s name, date of birth, Aadhaar number, and PAN details.
Mention the address and contact number.
Write the account type and birth certificate details.
Enter the details of the documents required for KYC.
Now, fill in the nomination details.
You need to get signs of 2 witnesses in case the applicant is not educated.

Sukanya Samriddhi Yojana Documents Required

In order to submit the documents and papers, you have to go downstairs to the bank branch or post office where you submitted your SSY application. A copy of each of the following documents has to be submitted:

The birth certificate of the girl child
Proof of identity and residence of the guardian
A medical certificate to certify the birth of multiple girls in one birth order
Other KYC papers such as voter IDs and Aadhaar cards, etc.
Any other documentation banks or post offices may need.

Sukanya Samriddhi Yojana Online Payment

For sukanya samriddhi yojana online, you need to download the IPPB app to your mobile. You can use this app to create standing orders that will transfer a specific amount to your SSY account online. This is the step-by-step process:

Step 1: Transfer money to the IPPB account from your bank account.
Step 2: Choose the Sukanya Samriddhi Yojana account under the DOP Products / Services menu on the IPPB app.
Step 3: Enter the customer ID and your SSY account number.
Step 4: Choose how much you wish to pay and for how long the installments will run.
Step 5: IPPB will inform you whether the payment routine setup was successful.

Sukanya Samriddhi Yojana closure on Maturity

When the girl child attains 21 years of age, the account is said to be matured. At this juncture, the balance available in the SSY along with the interest, if any, is disbursed on an application for withdrawal, production of identification and proof of address and citizenship certificates.

Sukanya Samriddhi Yojana Early Closure

An early closure shall be permitted only on the following conditions:

If a girl child is 18 years old, she can apply (Form-4) stating why she wishes to marry, accompanied by her age-proof documents, one month prior to and three months subsequent to the wedding.
The guardian will receive the remaining balance in the SSY with interest on the death of the girl child on the production of the death certificate.
The guardian will receive the balance of funds in the SSY along with interest in the event of death of the girl child upon submitting the death certificate.
medical treatment in case the guardian dies or the girl child develops a life-threatening sickness.
considered to be closure on the occurrence of a change of status of a girl child, like when she ceases to remain in India or ceases to be an Indian citizen.
The girl child or her guardian within one month from the change in status is to inform the other party regarding the change.
After five years have lapsed since the opening of the SSY, the guardian or girl child can apply for an early closure if the bank or post office is satisfied that the operation or continuance of the SSY is resulting in undue hardship to the girl child (e.g., death of the guardian or medical conditions of the girl child).
The entire deposit would get only the rate of interest on the post office savings bank if the SSY was closed for any other reason once this account was opened.

Conclusion

The Sukanya Samriddhi Scheme (SSY) is a scheme specifically meant to empower girls and secure their future. As this scheme also acts as a clever tax-saving tool, all parents of girl children should consider investing in it. In ten years from the birth of a girl child, parents can open an SSY account in her name. Her wedding and education expenses will be partly met by the maturity returns from SSY.

FAQs

1. If the SSY account is withdrawn, will the amount at maturity be taxable?

No, the maturity value of the SSY account is exempt from tax; it is not taxable.

2. How much can be deducted from the deposit in an SSY account? How can a deduction be claimed?

For the sum invested in the SSY account, you can claim up to Rs. 1.5 lakh deduction under Section 80C.

3. How do I view my Sukanya Samriddhi Yojana account balance?

When you open a SSY account in a bank or post office, you will be issued a passbook. You can get the latest information on the account balance stamped on the passbook by visiting the bank or PO branch where the account is maintained.

4. What is the formula to calculate the interest on sukanya samriddhi Yojana?

The formula to calculate the interest on sukanya samriddhi Yojana is A = P(1 + r/n).

5. What is the eligible age to apply for sukanya samriddhi Yojana?

When the girl child attains the age of 18 years, she can manage her SSY account. However, parents can open the SSY account for the girl child at an early age.