Sukanya Samriddhi Yojana: Interest Rate 2022: Eligibility, taxation

Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme for the benefit of girl child. It is a part of the Beti Bachao, Beti Padhao Yojana and can be opened by the parents of a girl child below the age of 10. It can be opened at designated banks or post offices. A SSY Account has a tenure of 21 years or until the girl child marries after the age of 18.

Sukanya Samriddhi Yojana Interest Rates 2022

SSY Interest Rates are declared by the government quarterly. For Q1 (April-June) FY 2022-13, the interest rates have been set at 7.6% p.a.

Click here to check the historical Sukanya Samriddhi Yojana (SSY) interest rates.

Benefits Offered by Sukanya Samriddhi Yojana

Along with securing the financial future of the girl child, there are many other benefits offered by Sukanya Samriddhi Yojana. Here we have explained some of the benefits in detail.

Simple and Hassle-free Process of Opening the Account

The parents of the girl child can open the SSY account with a minimum deposition of Rs. 250 and can invest up to a maximum of Rs. 1.5 lakh in a financial year. The minimum contribution limit has been revised from Rs.1000.
Helps to Create a Financial Corpus for the Girl Child

The Pradhan Mantri Sukanya Samriddhi Yojana provides an opportunity for the parent of the girl child to create a financially secure future for their child right from the beginning. Moreover, it is also an excellent investment option to finance their child’s higher education. Under the SSY scheme, the guardian or parent can withdraw 50% of the accumulated sum to fulfill the higher education needs of the girl child once she completes 18 years of age.
Offers EEE Tax Benefit

Tax benefits can be availed under the SSY scheme in EEE (exempt – exempt – exempt) form:
- Tax exemption can be claimed U/S 80C of the Income Tax Act on the investment made towards the scheme up to the maximum limit of Rs. 1.5 lakh.
- The interest earned on the invested amount is tax-free.
- The maturity proceeds are tax exempted under Section 10(10D) of the Income Tax Act.

Premature Withdrawals Rules

If the girl child reaches 18 years of age, the account holder of the scheme can make premature withdrawals. In addition to this, in case of the uncertain demise of the parent or if any medical emergency occurs, premature withdrawals can be made after the completion of 5 years of the scheme from the date of initiation.

Features of Sukanya Samriddhi Yojana

Let’s take a look at some of the salient features of the scheme:

Sukanya Samriddhi Yojana account can be managed by the guardian or parent of the girl child until she turns 10 years old.
Once the girl reaches 18 years of age, she can manage her account.
The contribution made towards Sukanya Samriddhi Yojana ranges from a minimum of Rs.250 to a maximum of Rs.1.5 lakh in a financial year. The contribution should be made in multiples of Rs.100.
The deposition tenure of the SSY scheme is of 15 years and the maturity period of the scheme is 21 years.
The subscriber can transfer the Sukanya Samriddhi Yojana account from post-office to bank and vice versa anywhere within India. No charges are applicable for the transfer of the account.
To transfer the account from post-office to bank and vice-versa, the subscriber is required to submit the address of residential change.
The deposition made towards the account can be in the form of online transfer, demand draft, cash, or cheque.

Eligibility Criteria for Opening Sukanya Samariddhi Yojana Account

Here are the eligibility criteria for opening the Sukanya Samriddhi Yojana account.

Only the parent and legal guardian of the girl child is allowed to open the Sukanya Samriddhi accountin the name of the girl child.
While opening the account, the age of the girl child should be less than 10 years.
The maturity tenure of the account is until the girl reaches the age of 21 years.
An individual can start investing in SSY with a minimum of Rs. 250 and can invest up to a maximum of Rs. 1.5 lakh in a financial year.
Only one account can be opened in the name of a single girl child.
An individual family can open only two SSY accounts on the name of each girl child (exceptions are applicable in the case of twins and triplets).