Do you have a daughter who is less than 10 years old?

If yes, then you must have heard about Sukanya Samriddhi Yojana (SSY), a government-backed savings scheme for the girl child.

But do you know what SSY is and how it can benefit your daughter’s future?

If not, then don’t worry. In this article, I will give you a full review of SSY, including its features, benefits, interest rate, tax implications, maturity period, and more.

By the end of this article, you will have a clear idea of whether SSY is the right investment option for your daughter or not.

So, let’s get started.

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana (SSY) is a special savings scheme launched by the Indian government in 2015 under the Beti Bachao Beti Padhao campaign.

The main objective of SSY is to encourage parents to save money for their daughter’s education and marriage expenses.

SSY offers some attractive features and benefits for the girl child, such as:

• A high interest rate of 7.6% per annum (as of Q2 FY 2023-24), which is higher than most other small savings schemes.
• A tax exemption on the deposits, interest earned, and maturity amount under section 80C and section 10(11A) of the Income Tax Act, 1961.
• A long maturity period of 21 years from the date of opening or until the girl child marries after attaining 18 years of age, whichever is earlier.
• A partial withdrawal facility of up to 50% of the balance for higher education or marriage expenses after the girl child attains 18 years of age.
• A minimum deposit amount of only Rs. 250 per year and a maximum deposit amount of Rs. 1.5 lakh per year.
• A flexible deposit frequency of monthly, quarterly, half-yearly, or yearly.

SSY is one of the best investment options for securing your daughter’s future. It not only helps you save money for her education and marriage but also gives you a high return on your investment along with tax benefits.

But how can you open an SSY account for your daughter?

Let me show you.

List of Banks Offering Sukanya Samriddhi Yojana

You can open an SSY account for your daughter in any of the 28 banks that are authorized by the Reserve Bank of India to offer this scheme.

Here is the list of banks that offer SSY accounts:

Bank Name	Bank Name
State Bank of India	HDFC Bank
Bank of Baroda	ICICI Bank
Punjab National Bank	Axis Bank
Canara Bank	Kotak Mahindra Bank
Union Bank of India	IDBI Bank
Bank of India	Central Bank of India
Indian Overseas Bank	UCO Bank
Indian Bank	Corporation Bank
Andhra Bank	Syndicate Bank
Allahabad Bank	Dena Bank
United Bank of India	Vijaya Bank
Oriental Bank of Commerce	Federal Bank
Punjab & Sind Bank	South Indian Bank
Bharatiya Mahila Bank	Yes Bank

These banks offer convenient facilities for opening, depositing, and withdrawing money from SSY accounts.

You can choose any bank that suits your preference and location.

But how can you open an SSY account online?

Let me explain.

How to Open Sukanya Samriddhi Account Online

Opening an SSY account online is very easy and hassle-free. You just need to follow these simple steps:

1. Check your eligibility: To open an SSY account online, you need to meet the following eligibility criteria:
   • You must be a resident Indian citizen.
   • You must have a daughter who is less than 10 years old at the time of opening the account.
   • You can open only one account per daughter and a maximum of two accounts per family (except in case of twins or triplets).
2. Visit the bank’s website: Once you have checked your eligibility, you need to visit the website of the bank where you want to open an SSY account. For example, if you want to open an SSY account in SBI, you can visit [this link].
3. Fill up the online application form: On the bank’s website, you will find an option to apply for SSY online. Click on that option and fill up the online application form with the required details, such as your name, address, PAN, Aadhaar, daughter’s name, date of birth, etc.
4. Upload the documents: After filling up the online application form, you need to upload the scanned copies of the following documents:
   • Your identity proof, such as PAN card, Aadhaar card, passport, voter ID card, etc.
   • Your address proof, such as electricity bill, water bill, telephone bill, bank statement, etc.
   • Your daughter’s birth certificate issued by the municipal authority or any other competent authority.
5. Submit the form and make the initial deposit: After uploading the documents, you need to submit the online application form and make the initial deposit of at least Rs. 250 through net banking, debit card, credit card, or UPI. You will receive a confirmation message and an account number on your registered mobile number and email ID.
6. Visit the bank branch: Within 30 days of opening the SSY account online, you need to visit the bank branch with the original documents and a printout of the online application form for verification and activation of the account.

That’s it. You have successfully opened an SSY account online for your daughter.

But what if you want to open an SSY account in a post office?

Don’t worry. I will tell you how.

How to Open Sukanya Samriddhi Account in Post Office

You can also open an SSY account in any post office branch across India. The process is similar to opening an SSY account in a bank, except for a few differences.

Here are the steps to open an SSY account in a post office:

1. Visit the post office branch: Once you have checked your eligibility, you need to visit the nearest post office branch where you want to open an SSY account. You can find the list of post offices that offer SSY accounts [here].
2. Fill up the offline application form: At the post office branch, you will get an offline application form for opening an SSY account. You need to fill up the form with the required details, such as your name, address, PAN, Aadhaar, daughter’s name, date of birth, etc.
3. Submit the documents: Along with the offline application form, you need to submit the following documents in original and photocopy:
   • Your identity proof, such as PAN card, Aadhaar card, passport, voter ID card, etc.
   • Your address proof, such as electricity bill, water bill, telephone bill, bank statement, etc.
   • Your daughter’s birth certificate issued by the municipal authority or any other competent authority.
4. Make the initial deposit: After submitting the documents, you need to make the initial deposit of at least Rs. 250 in cash or cheque. You will receive a passbook and an account number for your SSY account.

That’s it. You have successfully opened an SSY account in a post office for your daughter.

But how much interest will you earn on your SSY account?

Let me show you.

Sukanya Samriddhi Yojana Interest Rate 2023

One of the main attractions of SSY is its high interest rate.

The interest rate of SSY is determined by the government every quarter based on the prevailing market conditions.

The current interest rate of SSY for Q2 FY 2023-24 (July-September) is 8% per annum .

This is higher than most other small savings schemes, such as:

Scheme Name	Interest Rate
Public Provident Fund (PPF)	7.1%
National Savings Certificate (NSC)	6.8%
Kisan Vikas Patra (KVP)	6.9%
Senior Citizen Savings Scheme (SCSS)	7.4%
Post Office Monthly Income Scheme (POMIS)	6.6%

The interest rate of SSY is compounded annually and credited to the account at the end of each financial year.

The interest rate of SSY affects the maturity value of your investment.

For example, if you invest Rs. 1 lakh per year in SSY for 15 years at an interest rate of 8%, you will get approximately Rs. 45 lakh at maturity after 21 years.

Here is a table that shows how much maturity value you will get for different deposit amounts and interest rates:

Deposit Amount	Interest Rate	Maturity Value
Rs. 50,000	7.6%	Rs. 23.4 lakh
Rs. 1 lakh	7.6%	Rs. 46.8 lakh
Rs. 1.5 lakh	7.6%	Rs. 70.2 lakh
Rs. 50,000	8%	Rs. 25 lakh
Rs. 1 lakh	8%	Rs. 50 lakh
Rs. 1.5 lakh	8%	Rs. 75 lakh

As you can see, the higher the deposit amount and the interest rate, the higher the maturity value.

But how can you calculate the maturity value of your SSY account without using a table?

Don’t worry. There is an easy way to do that.

Let me show you.

Sukanya Samriddhi Yojana Calculator

A Sukanya Samriddhi Yojana calculator is an online tool that helps you estimate the maturity value of your SSY account based on various parameters, such as:

• The deposit amount: This is the amount of money you invest in your SSY account every year.
• The interest rate: This is the rate of interest offered by the government on your SSY account every quarter.
• The tenure: This is the duration of your SSY account, which is either 21 years from the date of opening or until the girl child marries after attaining 18 years of age, whichever is earlier.

Using an SSY calculator, you can easily find out how much money you will get at maturity by entering these parameters.

You can also compare different scenarios and see how changing any of these parameters affects your final outcome.

But where can you find an SSY calculator?

There are many websites and apps that offer SSY calculators for free.

One of them is [Sukanya Samriddhi Yojana Calculator by Groow.in], which is a reliable and user-friendly website that provides accurate and updated information about SSY.

You can access this website from any device and use its SSY calculator to plan your investment.

But how can you use this SSY calculator?

Let me explain.

How to Use Sukanya Samriddhi Yojana Calculator

Using the SSY calculator on [Sukanya Samriddhi Yojana Calculator] website is very simple and easy.

You just need to follow these steps:

1. Visit the website: Go to [Groww.in Sukanya Samriddhi Yojana Calculator] website from any browser on your device.
2. Enter the deposit amount: On the homepage, you will see a slider that allows you to enter the deposit amount for your SSY account. You can enter any amount between Rs. 250 and Rs. 1.5 lakh per year.
3. Enter the interest rate: Below the slider, you will see a box that allows you to enter the interest rate for your SSY account. You can enter any rate between 4% and 10% per annum.
4. Enter the tenure: Below the box, you will see another slider that allows you to enter the tenure for your SSY account. You can enter any duration between 15 years and 21 years.
5. Click on calculate: After entering all the parameters, click on the calculate button below the sliders and box.
6. View the results: After clicking on calculate, you will see a table that shows the results of your calculation, such as:
   • The total deposit amount: This is the sum of all your annual deposits in your SSY account.
   • The total interest earned: This is the difference between the maturity value and the total deposit amount.
   • The maturity value: This is the final amount that you will get at maturity from your SSY account.

Here is an example of how to use the SSY calculator:

Suppose you want to invest Rs. 1 lakh per year in your SSY account for 15 years at an interest rate of 7.6%.

Here is how you can use the SSY calculator to find out your maturity value:

• Visit [Sukanya Samriddhi Yojana Calculator] website.
• Enter Rs. 1 lakh as the deposit amount using the slider.
• Enter 7.6% as the interest rate using the box.
• Enter 15 years as the tenure using the slider.
• Click on calculate.
• View the results in the table.

The table will show you that:

• Your total deposit amount is Rs. 15 lakh.
• Your total interest earned is Rs. 31.8 lakh.
• Your maturity value is Rs. 46.8 lakh.

You can also see a graph that shows how your balance grows over time.

You can change any of the parameters and see how the results change accordingly.

You can also download or print the results for your reference.

Using the SSY calculator, you can easily plan your investment and achieve your financial goals for your daughter’s future.

But what about the tax benefits of SSY?

Let me tell you.

Sukanya Samriddhi Yojana Tax Benefit

Another major attraction of SSY is its tax benefit.

SSY offers a triple tax benefit, which means that:

• The deposits made in SSY account are eligible for tax deduction under section 80C of the Income Tax Act, 1961 up to Rs. 1.5 lakh per annum.
• The interest earned on SSY account is exempt from tax under section 10(11A) of the Income Tax Act, 1961.
• The maturity amount received from SSY account is also exempt from tax under section 10(11A) of the Income Tax Act, 1961.

This means that you can save tax on your income as well as on your returns from SSY account.

This makes SSY one of the best tax-saving instruments available in India.

But how does SSY compare with other tax-saving instruments?

Let me show you.

How SSY Compares with Other Tax-Saving Instruments

SSY is not the only tax-saving instrument available in India. There are many other options that you can choose from, such as:

• Equity Linked Savings Scheme (ELSS): This is a type of mutual fund that invests in equity and equity-related securities. ELSS offers tax deduction under section 80C of the Income Tax Act, 1961 up to Rs. 1.5 lakh per annum. The lock-in period of ELSS is 3 years and the returns are subject to capital gains tax.
• National Pension System (NPS): This is a voluntary retirement savings scheme that allows you to invest in various asset classes, such as equity, debt, and government securities. NPS offers tax deduction under section 80C of the Income Tax Act, 1961 up to Rs. 1.5 lakh per annum and an additional deduction of Rs. 50,000 under section 80CCD(1B). The maturity amount of NPS is partially taxable and partially exempt.
• Fixed Deposits (FDs): These are deposits made with banks or post offices for a fixed period of time at a fixed rate of interest. FDs offer tax deduction under section 80C of the Income Tax Act, 1961 up to Rs. 1.5 lakh per annum. The interest earned on FDs is fully taxable and subject to TDS.
• Public Provident Fund (PPF): This is a long-term savings scheme that offers a fixed interest rate of 7.1% per annum (as of Q2 FY 2023-24). PPF offers tax deduction under section 80C of the Income Tax Act, 1961 up to Rs. 1.5 lakh per annum. The interest earned and the maturity amount of PPF are fully exempt from tax.

How does SSY compare with these tax-saving instruments?

Let’s see.

Instrument	Deposit Limit	Interest Rate	Tax Benefit	Maturity Period
SSY	Rs. 250 – Rs. 1.5 lakh	8%	Triple tax benefit	21 years or until marriage
ELSS	No limit	Market-linked	Tax deduction on deposit, capital gains tax on returns	3 years
NPS	No limit	Market-linked	Tax deduction on deposit, partial tax exemption on maturity	Till retirement or 60 years
FDs	No limit	Bank/post office rate	Tax deduction on deposit, tax on interest	5 years or more
PPF	Rs. 500 – Rs. 1.5 lakh	7.1%	Triple tax benefit	15 years

As you can see, SSY offers a higher interest rate than PPF and FDs, and a more stable return than ELSS and NPS.

SSY also offers a triple tax benefit, which is unmatched by any other instrument.

SSY has a longer maturity period than ELSS and FDs, but shorter than NPS and PPF.

SSY is ideal for those who want to save money for their daughter’s education and marriage while enjoying high returns and tax benefits.

But what happens when your SSY account matures?

Let me tell you.

Sukanya Samriddhi Yojana Maturity Period

The maturity period of SSY is either 21 years from the date of opening or until the girl child marries after attaining 18 years of age, whichever is earlier.

This means that you can continue to deposit money in your SSY account for up to 15 years from the date of opening.

After that, no further deposits are allowed, but the account will continue to earn interest till maturity.

You can withdraw the entire amount from your SSY account at maturity without any penalty or tax.

However, you can also withdraw some money from your SSY account before maturity under certain conditions.

Let me explain.

Partial Withdrawal from SSY Account

You can withdraw up to 50% of the balance in your SSY account for higher education or marriage expenses after the girl child attains 18 years of age.

You need to submit an application along with the proof of admission or marriage to the bank or post office where you have opened your SSY account.

The withdrawal amount will be paid directly to the educational institution or the bridegroom’s family.

The remaining amount will continue to earn interest till maturity.

Premature Closure of SSY Account

You can also close your SSY account before maturity under certain circumstances, such as:

• Death of the girl child or the depositor
• Medical emergency of the girl child or the depositor
• Change of citizenship or residency status of the girl child or the depositor

You need to submit an application along with the relevant documents to the bank or post office where you have opened your SSY account.

The closure amount will be paid after deducting the interest rate applicable to the post office savings account.

The closure amount will be exempt from tax.

Disadvantages of Sukanya Samriddhi Yojana

While Sukanya Samriddhi Yojana (SSY) is a beneficial scheme for the girl child’s future, it also has some drawbacks that you should be aware of before investing in it. Here are some potential disadvantages of the SSY scheme:

Limited Flexibility

The SSY scheme is designed specifically for saving for the education and marriage expenses of a daughter.

Therefore, it has limited flexibility in terms of withdrawal and closure. You can withdraw only up to 50% of the balance after the girl child attains 18 years of age, and only for higher education or marriage purposes.

You can close the account only after 21 years from the date of opening or until the girl child marries, whichever is earlier. If you need money for any other reason, you cannot access your SSY account.

Variable Interest Rate

The interest rate of SSY is not fixed and is determined by the government every quarter based on the prevailing market conditions.

This means that the interest rate can change from time to time and may not always be favorable for you. For example, the interest rate of SSY for Q2 FY 2023-24 is 7.6%, which is lower than the previous quarter’s rate of 8%.

If the interest rate drops further in the future, your returns from SSY may be lower than expected.

Long Lock-in Period

The SSY scheme has a long lock-in period of 15 years, during which you have to make regular deposits every year.

This means that you have to commit to saving a certain amount every year for a long time, which may not be feasible for everyone.

Moreover, you cannot stop making deposits or close the account before the lock-in period ends, unless there is a death or medical emergency of the girl child or the depositor.

No Online Facility

The SSY scheme does not have an online facility for opening, depositing, or withdrawing money from the account.

You have to visit the bank or post office branch where you have opened your SSY account and submit the required documents and forms for any transaction.

This may cause inconvenience and delay for you, especially if you live in a remote area or have a busy schedule.

No Loan Facility

The SSY scheme does not allow you to take any loan against your SSY account.

This means that you cannot use your SSY account as collateral or security for borrowing money from any lender.

This may limit your options for meeting any urgent or unexpected financial needs.

These are some of the disadvantages of Sukanya Samriddhi Yojana that you should consider before investing in it.

However, these drawbacks do not outweigh the benefits of SSY, which is a great scheme for securing your daughter’s future.

Conclusion

Sukanya Samriddhi Yojana is a great savings scheme for the girl child’s future.

It offers a high interest rate, a triple tax benefit, and a long maturity period.

It also allows partial withdrawal and premature closure under certain conditions.

If you have a daughter who is less than 10 years old, you should consider opening an SSY account for her.

It will help you save money for her education and marriage while giving you a high return on your investment.

So, what are you waiting for?

Open an SSY account today and secure your daughter’s future.

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And if you have any questions or feedback, please leave them in the comment section below.

I would love to hear from you.

Thank you for reading. 😊

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