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Written by - Akshatha Sajumon

March 3, 2022 5 minutes

The Sukanya Samriddhi Yojana initiative aims to improve girls’ lives in India. The Sukanya Samriddhi plan was established to provide a way of saving for every family’s girl child. The SSY is valid for 21 years after the account establishment date or until the girl reaches the age of eighteen years and marries.

Prime Minister Narendra Modi announced the Sukanya Samriddhi Yojana (SSY) initiative as part of the Beti Bachao Beti Padhao campaign, intending to safeguard the future of a female child. The following are the key advantages of the SSY scheme:

  • The interest rate has been lowered from 8.4% to 7.6%.
  • Tax advantages of  up to Rs.1.5 lakh
  • It can be transferred to another account.

Investments in the plan can be utilised for the girl child’s education and marriage. Banks, as well as post offices, can help you open an SSY account. Contributions to the plan are eligible for tax advantages of up to Rs.1.5 lakh per Section 80C of the Income Tax Act, 1961. The SSY scheme’s interest rate has been decreased from 8.4 per cent to 7.6 per cent, and it is multiplied annually. Interest is not due once the scheme’s length is fulfilled or if the girl has become a non-resident Indian (NRI) or a non-citizen. The government sets the interest rate, which is established quarterly.

Eligibility for Sukanya Samriddhi Yojana

The following are the Sukanya Samriddhi Yojana accounts eligibility requirements:

  • A female child’s parent/guardian can create an SSY account on her behalf unless she attains the age of ten.
  • A native Indian female kid is required.
  • Up to 2 accounts for two daughters can be established per household.
  • In the case of twin girls, a new SSY account can also be formed.

To create an SSY account, you’ll need the following documents.

The following are the paperwork needed to create an SSY account:

  • Form for establishing an SSY account.
  • The girl child’s birth certificate must be supplied
  •  at account opening.
  • The depositor must provide proof of identity and residence at the account opening.
  • If more than one kid is born in the same sequence, a medical certificate must be filed.
  • Any other documentation that the bank/post office may require

What happens if you pay a lower or higher amount to the sukanya samriddhi yojana scheme?

  • Lesser amount: The account will default if the minimum standard of Rs.500 is not deposited in a financial year. However, by paying Rs.50, the accounts can be restored to active status.
  • Amount in excess: Any deposit over Rs.1.5 lakh earns no interest. The depositor has the option to withdraw the extra funds at any time.

Withdrawal Rules for Sukanya Samriddhi Yojana

The following are the SSY account’s withdrawal rules:

After the account’s period has been fulfilled, the female kid can withdraw the full sum available in the account, including the interest. The following documents, however, must be submitted:

  • Form for requesting the sum to be withdrawn.
  • Proof of identification, evidence of address, and proof of citizenship papers
  • If the female child has hit 18 and has finished the 10th grade, she may withdraw for further study. However, the money must be used to pay the entry price and any additional fees imposed at the date of admittance.
  • When filing for a withdrawal, documents such as admittance to the college or university, and the fee receipt, must be presented.
  • The maximum sum that can be removed equals 50% of the previous year’s available funds. The money can be taken out in five instalments or one big payment.

Premature withdrawal from an SSY account is subject to certain rules

The following are the laws that allow the account to be closed early:

  • Premature departure from SSY is permitted if the girl reaches the age of Eighteen and is engaged to be married. To be eligible for the benefit, a form must be filed at least a month before the wedding and three months after the wedding. Documents establishing the girl’s age must also be submitted.
  • The accounts will be considered cancelled if the girl child has become a non-citizen or non-resident. Any such shift in status must be reported within one month of the status change by the guardians or the female child.
  • If the female child dies away, the guardian can withdraw the money from the account. The death certificate, on the other hand, must be filed.
  • If the account has been open for more than five years and the bank and post office believes that continuing to keep the account open is causing problems for the female child, the guardians or girl child might choose to close it early.
  • Permission to cancel the account for other reasons will also be granted, but the interest gained on donations will remain the same as interest rates offered by post offices.

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