The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme designed to help parents build a financial fund for their daughters. Parents or legal guardians can open an account for an eligible daughter before she turns 10 years old.
The scheme allows families to start saving with a minimum deposit of just ₹250. In simple terms, setting aside around ₹10 a day can help parents build a sizeable corpus over the long term. The account can be opened at a post office or eligible bank, including SBI.
How to Open an SSY Account
To open a Sukanya Samriddhi account, parents need to submit the daughter’s birth certificate along with the application form. The required identity and address proofs of the parents and daughter also need to be provided, along with passport-size photographs of the parents.
For those choosing SBI, the account can be opened by visiting a nearby branch. After submitting the application, documents and the minimum ₹250 deposit, the bank will process the request. Having an existing SBI savings account is not mandatory, provided the applicant is the daughter’s legal parent or guardian and meets the eligibility requirements.
Once opened, the SSY account can also be monitored online. Customers can obtain the required online banking facility and use it to check deposits and the returns accumulated in the account.
Investment Limit and Account Rules
An SSY account can be opened with a minimum deposit of ₹250, while the maximum amount that can be deposited in a financial year is ₹1.5 lakh. Deposits are required during the initial 14 years, while the account has a maturity period of 21 years from the date of opening.
Generally, one account can be opened in the name of each eligible daughter, and parents can open accounts for up to two daughters. Special provisions apply in cases involving twins or triplets, allowing an additional account under the applicable conditions.
The account needs to be opened before the daughter reaches 10 years of age. If the required minimum annual deposit of ₹250 is not made, the account is treated as a default account. However, the existing balance continues to earn interest under the scheme.
Withdrawal, Maturity and Tax Benefits
The SSY account matures after 21 years from the date of opening, subject to the scheme’s applicable conditions. If the daughter gets married after turning 18 but before the completion of the maturity period, the account can be closed as per the rules.
The scheme also allows up to 50% of the accumulated amount to be withdrawn for the daughter’s higher education after she turns 18, subject to the applicable conditions.
Sukanya Samriddhi Yojana also provides tax benefits under Section 80C of the Income Tax Act. The amount received on maturity is tax-free. The scheme is intended to help parents build long-term savings for major financial needs such as their daughter’s higher education and marriage.
The SSY account cannot be continued after the daughter’s marriage once the applicable conditions for closure are met. If the account remains open after maturity, the deposited amount can continue to earn interest until the account is closed, subject to the scheme rules.