This is a government backed savings scheme for the welfare of girl child. It can be opened by parents of a girl child below the age of 10 years. The scheme has a tenure until the girl child attains the age of 21 years or until the girl child gets married, whichever is earlier. 

The present rate of interest on Sukanya Samriddhi Yojana (SSY) is 8.5%. Only two SSY accounts are allowed for a family. SSY account can be opened in any of the designated banks or post office branches.

Eligibility for SSY Account

The following are the key eligibility criteria for opening a SSY Account as part of the Beti Bachao, Beti Padhao Yojana:

1. Sukanya Samriddhi account can be opened only in the name of girl child by her parents or legal guardians.
2. The girl child has to be below the age of 10 at the time of account opening.
3. Multiple Sukanya Samridhhi accounts cannot be opened for a single girl child.
4. Only two SSY accounts are allowed for a family i.e. one for each girl child.
   

How to invest in the Sukanya Samriddhi Yojana ?

One can invest in this scheme through your nearby post office or designated branches of participating public and private banks. You will need to submit KYC documents like Passport, Aadhar Card etc. along with the application form and initial deposit by cheque/draft. 

SSY Application Form

The Sukanya Samriddhi Yojana Application Form for new account can be obtained by visiting a nearby post office or participating public/private sector bank. Alternately, you can also download the Application Form from the RBI website.  

Benefits of Investing in Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana (SSY) introduced as part of the Beti Bachao, Beti Padhao Yojana initiative, provides investors with a range of benefits. Some of the key benefits of this scheme for benefit of girl child are as follows:

• Provides tax deduction benefit under Section 80C up to Rs. 1.5 lakh annually
• Flexible investment option with minimum deposit of Rs. 250 in a year (max. Rs. 1.5 lakh per annum)
• Guaranteed returns instrument backed by the Government of India (sovereign guarantee)
• Higher fixed rate of return (currently 8.5% per annum for Q4 FY 2018-19) as compared to other  government-backed tax saving schemes such as PPF.
• Long term investment hence provides the benefit of compounding
• Can be freely transferred from one part of the country to another (bank/post office) in case of transfer of parent/guardian operating the Sukanya Samriddhi Account.
  

Tenure

Sukanya Samriddhi Yojana has a tenure equal to the time the girl child is 21 years of age or upon her marriage attaining the age of majority (18 years) whichever is earlier. However, contributions only need to be made for 15 years. Thereafter the account continues to earn interest until maturity even if no deposits are made into it.

Taxation

From a taxation perspective, SSY investments are designated as an EEE (Exempt, Exempt, Exempt) investment. This means that the principal invested, the interest earned as well as the maturity amount are tax free. 

Premature closure of SSY Account

Premature closure can only be done by a girl child on attaining the age of 18 years for the purpose of marriage expenses.

 Loan

Under existing rules, there is no option of availing a loan on the basis of the balance available in a Sukanya Samriddhi Account. 

Transfer of Sukanya Samriddhi Yojana Account

One of the key benefits of the Sukanya Samriddhi Yojana Account is the fact that it is easily transferable from one part of India to another. Under existing rules, you can transfer this tax saving deposit account for benefit of girl child from one India Post Office to another or from one designated bank branch to another with ease. To initiate transfer of your SSY account from a post office or bank, you will have to fill out and submit the ‘transfer request form’ with the Post  Office or bank branch where your account is currently located.