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      SSY – Sukanya Samriddhi Yojana Benefits & Interest Rates

      • 5 min read
      • Last Modified Date: December 14, 2023
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      Empowering parents to secure a brighter future for their daughters, Sukanya Samriddhi Yojana (SSY) has emerged as a popular and powerful India’s savings scheme. 

      This government-backed initiative not only offers attractive interest rates but also provides a host of financial advantages for families planning their girl child’s financial journey. In this blog, we explore the numerous benefits and competitive interest rates that make SSY a smart choice for nurturing your child’s dreams and aspirations. Let’s delve into the world of SSY to understand how it can pave the way for a secure and prosperous future.

      If you are looking for the best investment opportunities in India apart from SSY for fixed income, then you must invest in the real estate market. A promising avenue within this sector is the realm of structured debt investments, particularly in commercial real estate. Structured debt investments in real estate involve tailored financing solutions designed for commercial real estate projects, providing investors with the opportunity to potentially achieve attractive returns and regular earnings. The entry into this investment avenue is accessible with a relatively modest initial amount of 10 lakhs, and it offers the potential for returns ranging from 12% to 20%. These investment opportunities are facilitated through reputable alternative investment platforms like Assetmonk.

      SSY or Sukanya Samriddhi Yojana

      Sukanya Samriddhi Yojana is a savings scheme that is sponsored by the Indian government and aimed at improving the life of every girl in India. Sukanya Samriddhi Yojana was launched to provide a bright future for the girl child and allows parents to build a fund for their girl child’s future marriage and education expenses.

      Sukanya Samriddhi Yojana is a deposit scheme designed specifically for girls. It was created to provide a future that is secure for girls.

      This deposit scheme will help you to make consistent savings for your girl child. You can amass a sufficient corpus by making regular deposits throughout the year. The corpus will help your daughter realize her goals, such as education.

      If you want to open an account under the Sukanya Samriddhi Yojana Scheme, you can do so at either of the following locations.

      1. Banking institutions
      2. Post offices

      Features of Sukanya Samriddhi Yojana

      INTEREST RATE8 percent per annum
      LIMIT OF THE DEPOSITMin.deposit is an initial deposit of Rs 250– Max. Deposit: Rs 1.5 lacs
      HOLDER OF THE A/C– If the girl child is under 10y old, then the account will be handled by the parent or guardian of the girl.– A Girl can take control of the account once she turns 18
      MATURITY21 years after opening the account. You have to deposit for at least 15 years
      DOCUMENTATION REQUIRED– Girl child’s birth Certificate – Form-1– PAN or AADHAR of the Parent or Guardian
      DEPOSITSDeposits can be made through the following:– online transfer or NEFT– demand draft– cash– cheque

      Sukanya Samriddhi Yojana Benefits

      • Significant Interest: Sukanya Samriddhi Account pays a higher rate of interest compared to the other several Saving Schemes. This offers better security for girls. The government declares the applicable interest rate for that fiscal year each year, whereas the interest on your investments is compounded yearly. The assets in your Sukanya Samriddhi Yojana account will have multiplied by the power of compounding by the time you reach maturity.
      • Significant Tax Benefits: Contributions to the Sukanya Samriddhi Yojana for the future of your daughter are tax deductible under Section 80C of the Income Tax Act of 1961. As a result, you can claim tax benefits up to Rs 1.5 lakh invested in the scheme. 

      Additionally, there are tax incentives applicable to both the interest accrued and the sum received at the time of withdrawal or maturity. 

      The Sukanya Samriddhi Yojana is one of the more popular investment schemes that come with the exempt-exempt-exempt (EEE) status and is administered by the Department of Revenue (DOR).

      • Maturity Benefits are Guaranteed: At maturity, your Sukanya Samriddhi Yojana account balance, including accumulated interest, will be paid directly to the girl child (or policyholder). 

      Hence, the program essentially aids your daughter in achieving financial autonomy and empowerment when she reaches a level of maturity to take charge of her life decisions independently. 

      Another advantage of investing in the Sukanya Samriddhi Yojana is that your accumulated savings will earn compound interest even after maturity until the account is finally closed by the account holder.

      • Tax Benefits: If you possess an SSY account, you may be eligible for tax breaks on deposits. Consider the tax advantages provided by the Sukanya Samriddhi Yojana.

      a) Because an SSY account is a type of investment, it qualifies for deductions per IT Act Section 80C. You are eligible for a deduction of up to Rs 1,50,000.

      b) The compound interest accumulated in your deposit account is also tax-free.

      c) Withdrawals are tax-free as well. As a result, once your account matures, you can withdraw the funds without penalty.

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      Interest Rates for Sukanya Samriddhi Yojana

      The current rate of interest on your Sukanya Samriddhi Yojana account is 8% per annum. 

      a) Interest is paid to you yearly

      b) Interest is only credited at the end of each fiscal year

      c)The government sets the interest rates and change quarterly;

      d) No interest is paid if the girl becomes an NRI.

      How to Open Sukanya Samriddhi Yojana

      1. Go to your local bank or post office.
      2. Complete the Sukanya Samriddhi Yojana application form. This is referred to as FORM SSA- 1. This form will be provided to you by the bank or post office you visit.
      3. You can also download the form and fill it out ahead of time.
      4. After completing this form, you must submit the required documents. These are some:

      a)Girl child’s birth Certificate for whom you wish to open an account

       b) Identity proof of the parent/guardian (AADHAR card, PAN card, Voter ID, etc.)

      c) Address Proof: Driver’s License, Utility Bill, etc.

      1. Make your initial deposit. A minimum deposit of Rs 250 is required. You can deposit up to Rs 1.5 lakh.
      2. The bank will process your application after you have submitted all of the required documents.
      3. Your SSY account will be activated after verification. You will be given a passbook.

      Banks that Offer SSY Accounts

      • Indian Bank
      • Syndicate Bank
      • United Bank of India
      • Bank of Maharashtra
      • Central Bank of India
      • Oriental Bank of Commerce
      • Axis Bank
      • Bank of India
      • Canara Bank
      • IDBI Bank
      • UCO Bank
      • Allahabad Bank
      • Indian Overseas Bank
      • Corporation Bank
      • Punjab National Bank
      • Punjab & Sind Bank
      • ICICI Bank
      • Vijaya Bank
      • Union Bank of India
      • Dena Bank
      • State Bank of India
      • Bank of Baroda
      • Andhra Bank

      How to Create a Sukanya Samriddhi Yojana Account at the Post Office

      1. Complete the Post Office Savings Bank account opening form.
      2. Attach your ID, address proof, and other supporting documents to the application form.
      3. Make the deposit (it should be more than Rs 250)
      4. Wait for the application to be processed.
      5. Your account will be opened after processing, and you will be given the passbook.

      How to Make an Online Sukanya Samriddhi Yojana Payment?

      1. Install the IPPB (Indian Postal Payments Bank) app. IPPB is a division of Indian Post. You can download it from the link  https://www.ippbonline.com/
      2. To begin, transfer funds from your current bank account to your IPPB account.
      3. Locate the ‘DOP Product’ section now. Select the SSY account link.
      4. After that, enter your SSY account number as well as your DOP customer ID.
      5. Choose the amount and duration of your deposit to your SSY account.
      6. Wait for IPPB confirmation of the successful transfer.
      7. Once you receive confirmation, your payment is complete and your payment routine is established.

      Withdrawal Procedures for Sukanya Samriddhi Yojana

      1. Application form for the withdrawal of the amount.
      2. ID proof
      3. Address proof
      4. Citizenship documents

      Premature withdrawal from SSY account rules

      • Premature withdrawal from SSY is permitted once the girl reaches 18 and marries. To receive the benefit, however, an application must be submitted at least one month before the marriage and three months after the marriage. Documents proving the girl’s age must also be provided.
      • If the girl child changes to a non-citizen or non-resident, the account is considered closed. Any such change in status must be reported within one month of the change in status by the guardian or the girl child.
      • If the girl child dies, the guardian may withdraw the balance in the account. The death certificate, however, must be submitted.
      • Should the account have a duration of five years or longer, and if the banking institution or post office deems that its continuance is posing challenges for the girl child, the guardian or the girl child has the option to make a formal request for early closure of the account.
      • Permission to close the account will also be granted for other reasons, but the interest earned from contributions will be the same as the interest rates offered by post offices.
      • Withdrawal for higher education is permitted if the girl child has reached 18 and has completed the 10th grade. However, the funds must be used for the admission fee or any other charges levied at the time of admission.
      • When applying for a withdrawal, documents such as admission to the university or college, as well as the fee receipt, must be submitted.
      • The maximum amount that can be withdrawn is 50% of the previous year’s available amount. The money can be withdrawn in five installments or all at once.

      Want to put your money into something more stable than Sukanya Samriddhi Yojana

      Real estate is the most secure and long-term investment choice right now. Do yourself a favor and start investing right now. 

      Allow Assetmonk to assist you! Assetmonk is a premium Indian alternative investment platform with investment opportunities in Chennai, Hyderabad, Bangalore, and Mumbai. It offers affordable commercial space investment options. Investing in alternative investments like commercial real estate can increase your chances of gaining profits in high portions, which is not the case with these savings schemes. Also, investing is made a lot easier by platforms like Assetmonk, where you can invest in a wide array of structured debt of commercial real estate assets. It offers an assured IRR of 17 percent. 

      Related Articles

      1. Saving Schemes In India Check Interest Rates & Eligibility
      2. Best Investment Options in India to get Higher Returns
      3. Post Office Investments – PPF, NSC, FD, RD, MIS, KVP, SSY.

      SSY – Sukanya Samriddhi Yojana Benefits & Interest Rates FAQs

      Who can open a Sukanya Samriddhi Account?

      You can open a Sukanya Samridhhi Account if you are the parent or legal guardian of a girl child. You can deposit a set amount of money into this account regularly and earn yearly interest on it. This will assist you in developing a corpus that will be useful when your daughter reaches the age of higher education or marriage. The SSY scheme was introduced by the government in 2015.

      Can NRIs avail the benefit of the Sukanya Samriddhi Scheme?

      No, there is currently no provision stating that Non-Resident Indians can also benefit from the Sukanya Samriddhi Scheme and open an account under this scheme. The girl child should be an Indian citizen as of now. If the girl child later becomes an NRI, the SSY account will be closed.

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