Sukanya Samriddhi Yojana or SSY is a government-backed savings scheme. It is also a part of the Beti Bachao, Beti Padhao Yojana for the well-being of a girl child. The scheme encourages parents or guardians to open up to two such accounts for two girl children. These come with a tenure of 21 years or until the girl gets married after 18 years.
In this article, we will cover how to open a Sukanya Samriddhi account. So, let’s begin!
Eligibility to open a Sukanya Samriddhi Yojana account
- Age of girl child should not exceed 10 years
- She should be a resident citizen of India
- The account cannot be opened for more than two girl children in a single family. Provided in case of twins/triplets girls birth more than two accounts can be opened.
- ID proof
- Address proof
- Photographs of the girl child and parent/guardian together
- Birth certificate
- Aadhaar card is very useful for the same
Other than banks, one can open SSY account with the post office.
- Parents or legal guardians of the girl child can open the account at any India Post Office or designated bank.
- The guardian needs to fill up a Sukanya Samriddhi Account Form (SSA-1) available at the post office or designated bank.
- The guardian is required to fill up details like the name of the child and guardian, address, birth certificate details of the child, KYC information of the guardian.
- Once the documents will be verified, the account will be opened.
- After all this, a passbook is issued to the account holder.
Sukanya Samriddhi Yojana investments are eligible for deductions under Section 80C of the Income Tax Act, 1961, up to a maximum of Rs.1,50,000. In addition, the interest earned, and the amount received at maturity of this scheme are tax-free.
After a girl kid reaches the age of 18 or has completed the 10th grade, she may withdraw money from her account.
A withdrawal of up to 50% of the balance available at the end of preceding F.Y.
Withdrawals may be made in one lump sum or in annual installments of up to one per year for a maximum of five years, subject to the specified ceiling and real fee/other charge requirements, according to SSY rules.
An account may be closed before the account holder reaches the age of twenty-one years if the account holder applies for it and provides a declaration duly signed on non-judicial stamp paper attested by a notary, along with proof of age, confirming that the applicant will not be under the age of eighteen years on the date of marriage.