SBI Sukanya Samriddhi Yojana (SSY) Scheme
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Know all about SBI’s popular scheme for the girl child – Sukanya Samriddhi Yojana (SSY). A look into its details, the interest rate, and benefits of the scheme.
The Indian government initiates several schemes in the country to encourage and promote the growth of girl child. Sukanya Samriddhi Yojana (SSY) by SBI is one such example of a government-backed scheme that has been introduced exclusively for the girl child in India. Here we learn all about this scheme, SBI account opening documents for the scheme, the interest rate offered by SBI, and the benefits under the plan for the investor. Keep reading to know more.
Sukanya Samriddhi Yojana SBI
The whole idea behind the initiation of this scheme by the SBI or State Bank of India was to encourage the parent(s) of a girl child towards incorporating the habit of savings in everyday life. Savings help build a corpus of wealth for the daughter(s) helping them to secure their future financially, whether for good higher education, study abroad, or marriage. These savings can be used to cover the expenses in all these areas for girls.
Also Read: Sukanya Samriddhi Yojana Return Calculator
The SSY is an initiation by the Indian government in the direction of the “Beti Bachao, Beti Padhao” campaign in the country.
How Does SBI Sukanya Samriddhi Yojana Work?
Under the SSY, the parent or legal guardian of a girl child (below 10 years of age) is authorized by SBI to open an account in the name of the child. Once the account is opened, the parent or guardian can deposit a certain amount of money as savings into it to use for the girl child in the future (for the latter’s education or marriage purposes).
The scheme also provides tax benefits to the account holder under Section 80C of the Income Tax Act, 1961. The Act entitles the account holder for a deduction up to Rs. 1.5 lakh. Besides, the rate of interest offered under the scheme is also relatively higher than other small-savings schemes run by the government.
Also Read: How to Break Fixed Deposit in SBI Online?
Let us take a detailed look at the key features of SBI Sukanya Samriddhi Yojana (SSY) Scheme below.
Key Features of Sukanya Yojana SBI Scheme
|Criteria for SSY SBI||Key Features|
|Eligibility for the plan||Scheme open only for girl child who is an Indian resident; NRI girls not covered under SSY|
|Opening of SSY account||Account for the girl child can be opened at a post office/bank either by her biological parents or a legal guardian; minimum deposit of Rs. 1,000 required for account opening|
|Partial withdrawal facility||50% of the deposited funds are allowed for withdrawal from the account for her higher studies/marriage once the girl is 18 years old|
|Deposit of funds||Starting deposit of Rs. 250 p.a. can be made and maximum deposit of Rs. 1.5 lakh p.a. permissible; fund deposits via cash/cheque|
|Reactivation of account||For the account to keep running, a minimum of Rs. 250 deposit every year for 14 years required; failure to do so would result in account deactivation; for revival – Rs. 50 charged with min. deposit|
|Age permissible||The account can be opened for a girl child right at the time of her birth until she is 10 years old|
|Term of the plan||21 years or until the girl gets married after the age of 18; account can remain active for max 21 years from the date of opening, after which no interest is earned from the account|
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Benefits of SBI Sukanya Samriddhi Yojana
There are several benefits of the SSY scheme. Some of them are listed below:
- The amount to be deposited every month into the scheme is fairly reasonable and can be easily afforded by all sections of the society.
- The interest rate offered by SBI for the SSY scheme is relatively higher than other banks. Every year, 7.6% per annum is compounded and credited into the SSY account. This has been in effect since 2020.
- Discounts and exemptions on tax are permissible under the scheme as per Section 80C of the ITA, 1961.
- Add-on interest is also offered under the scheme in case the account holder does not wish to withdraw the amount after the maturity of the term at 21 years. The compound interest would continue to be credited to the account at the rate of interest stated in the plan.
- The account is transferable to another authorized bank branch or post office if the depositor or account holder relocates to a new location. The entire transfer process is extremely smooth and hassle-free.
Also Read: Sukanya Samriddhi Yojana Versus LIC Kanyadan Policy
How to Open Sukanya Samriddhi Account Online in SBI
Here are the simple steps to open a Sukanya Samriddhi Yojana SBI online:
- Visit the nearest post office/authorized bank branch. Ask for a form to open the account and duly fill it out with all the required details for account opening.
- Submit the required documents along with the filled form and latest photographs. You would need to provide a valid photo ID and proof of residence (Aadhar card, ration card, passport, PAN card) of the biological parents/legal guardian of the child. In addition, the child’s birth certificate as well as her photograph and that of the parent/guardian also needs to be submitted.
- Make a minimum cash deposit of Rs. 1,000 for opening the account.
- Your account is now opened and you can make subsequent deposits via cash/cheque/DD/online.
Sukanya Samriddhi is a brilliant initiative by the Indian government in collaboration with SBI towards the welfare of a girl child in India. It allows the parents of a girl child, particularly those from the economically weaker sections of the society, to save and build a corpus for their daughters’ future (education and marriage). For SBI new account opening online, apply directly on the bank’s official website or visit PayBima for more details on the same. The latter would also give complete information on SBI Sukanya Samriddhi Yojana calculator to help you calculate the exact amount of deposits that need to be made towards the scheme.
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FAQs on SBI Sukanya Samriddhi Yojana (SSY) Scheme
How many years deposit in Sukanya?
The term of payment for a SSY scheme is a total of 15 years. However, the scheme matures only after a minimum term of 21 years.
Which deposit is best for kids?
A Fixed Deposit or FD account is generally considered to be one of the safest and the best investment schemes for children.
What is better – FD or Sukanya Samriddhi Yojana?
The government-backed SSY scheme generally offers a higher interest rate than any other scheme and is therefore considered better than FDs. However, the only drawback is that SSY is only eligible for a girl child up to the age of 10 years, while FDs can be opened for any child (regardless of gender).
Is it mandatory to deposit every month in Sukanya Samriddhi?
In order to ensure continuity of the SSY account, it is necessary to deposit a minimum of Rs. 250 every financial year. Henceforth, a deposit in multiples of 100 can be added to the account.
What happens if the father dies in Sukanya Samriddhi Yojana?
In case of an unfortunate, untimely demise of the father, the SSY account is closed prematurely.