Sukanya Samriddhi Yojana - Rules and Eligibility

Saving for your daughter's future can feel overwhelming given the wide array of financial schemes available. Among them, the Sukanya Samriddhi Yojana (SSY) stands out for its attractive interest rates, tax benefits, and its purpose-driven focus on the welfare and education of the girl child.

In this article, we break down everything you need to know about SSY—what it is, who is eligible, the rules, features, benefits, and how to open an account both offline and online.

Key Highlights

• SSY is a government savings scheme for girls under 10, promoting financial security and education.
• One account per girl, up to two per family, opened by parents or guardians.
• High interest rates + full tax benefits under Section 80C with tax-free maturity.
• Partial withdrawals allowed for education after age 18 and 10th grade.
• Easy to open offline or online via post office, banks, or IPPB app.

What is Sukanya Samriddhi Yojana?

Launched under the Government of India’s "Beti Bachao, Beti Padhao" initiative, Sukanya Samriddhi Yojana is a small savings scheme aimed at securing the future of a girl child. It allows parents or legal guardians to open a savings account in the name of their daughter to fund her education, marriage, or other major life milestones.

Key features of the scheme:

• Government-backed and risk-free
• High interest rate (revised quarterly)
• Tax benefits under Section 80C and tax-free maturity
• Long-term savings plan encouraging financial discipline

Eligibility Criteria for Sukanya Samriddhi Yojana

To ensure that the benefits of SSY reach the intended beneficiaries, the government has laid down clear eligibility rules:

• Who can open the account: A parent or legal guardian can open the account on behalf of a girl child.
• Age limit:The girl must be 10 years old or younger at the time of opening the account.
• One account per child: Only one SSY account is allowed per girl child.
• Maximum two accounts per family: A maximum of two SSY accounts can be opened per family (exceptions exist for twins/triplets).

Sukanya Samriddhi Yojana Rules & Features

Maturity and Withdrawal Rules

Maturity:

• The account matures 21 years from the date of opening.
• Full withdrawal is allowed at maturity, including the interest earned.

Higher education withdrawal: 

Partial withdrawal (up to 50% of the previous year’s balance) is allowed for higher education if:

• The girl is 18 years old, and has completed her 10th standard.
• Can be withdrawn as a lump sum or in a maximum of five installments.

Marriage-related withdrawal:

• Premature closure is allowed 1 month before or 3 months after the girl’s marriage, provided she is at least 18 years old.

Premature Closure Conditions:

• If the girl child becomes a non-resident or loses Indian citizenship, the account must be closed within one month.

Death of account holder:

• In case of the child’s death, the guardian can withdraw the balance upon submission of the death certificate.

Exceptional cases:

• Early closure is permitted under compassionate grounds (e.g., medical emergencies). In such cases, the principal remains intact and interest is calculated at the post office savings rate.

How to Open a Sukanya Samriddhi Yojana Account

Offline Process

1. Visit a nearby bank or post office: Most public and private sector banks and post offices offer SSY.
2. Fill in the application form: Complete the SSY form with the girl child’s details and attach required documents.
3. Make the initial deposit: The minimum amount is ₹250; the maximum is ₹1.5 lakh per financial year.
4. Account processing and passbook issuance: Once verified, the account will be activated and a passbook will be issued.

Online Process via IPPB App

1. Download the IPPB mobile app (Indian Post Payments Bank).
2. Set up standing instructions for automated monthly deposits.
3. Transfer funds to the linked SSY account.
4. Access the DOP Products section in the app and select SSY.
5. Enter SSY account number and DOP client ID.
6. Choose the deposit amount and payment frequency.
7. Receive confirmation and updates on successful transactions.

Sukanya Samriddhi Yojana Benefits

1. Low Minimum Deposit: Start with as little as ₹250, making it accessible for all income groups.
2. High Interest Rates: One of the highest among government savings schemes, revised quarterly.
3. Triple Tax Benefits (EEE Status): Contributions, interest earned, and maturity amount are all tax-exempt.
4. Guaranteed Returns: Being a government-backed scheme, returns are guaranteed and risk-free.
5. Financial Security for the Girl Child: Encourages long-term savings to meet significant life events like higher education or marriage.

The Sukanya Samriddhi Yojana is a thoughtfully designed savings instrument aimed at ensuring a secure financial future for the girl child. With its blend of high returns, tax efficiency, and flexible withdrawal rules for education and marriage, SSY stands out as a practical and meaningful investment.

Whether you prefer traditional banking or digital methods, opening and maintaining an SSY account is simple and rewarding. For families planning ahead, SSY is more than just a savings account—it's a step toward empowering their daughter's future.