The government has raised the interest rates on the Sukanya Samriddhi Yojana (SSY) for the January-March quarter. Sukanya Samriddhi is a unique program designed specifically for girls. A girl’s natural or legal guardian can create an account in her name from the time of her birth until she turns ten years old. This program will help parents to fund their girl child’s higher education and/or marriage as well as ensure her financial future because it offers guaranteed interest income and tax deductions.
What is the latest SSY interest rate
The interest rate of Sukanya Samriddhi Yojana scheme was hiked by 20 bps for the January-March 2024 quarter. It has been hiked from 8% to 8.2% for the quarter.
Age of Girl Child at time of Account Opening: Age should not be than 10 years.
Tenure of the Deposit: 21 years from the date of opening of the account
Maximum period upto which deposits can be made: 14 years from the date of opening of the account
Tax Rebate: As applicable under section 80C of the IT Act, 1961. Triple Tax Benefit – Principal invested, the interest earned as well as the maturity amount is tax free.
Premature Closure: Permitted in the event of the depositor’s death or in situations involving deeply compassionate justifications, such as the need for medical care for conditions that pose a serious threat to life, as long as the Central Government issues an order authorising it.
Irregular Payment/ Revival of account: By payment of penalty of Rs.50 per year along with the minimum specified amount per year.
Withdrawal: For the purpose of higher study and marriage after turning 18 years old, 50% of the amount in the account as of the preceding financial year’s end will be given.
SSY tax benefits
With a sovereign guarantee and the exempt-exempt-exempt (EEE) status, SSY offers a significant tax-free return. The annual contribution (contributions) is eligible for a Section 80C deduction, and the maturity benefits are tax-free. Note that the maximum investment limit is Rs 1,50,000.
What documents are required for opening SSY account
The following documents are required:
- SSY Account Opening form
- Birth Certificate of the girl child, having the child’s name on it
- Photograph of the parent/ legal guardian of the girl child
- KYC Documents (Identity & Address Proof) of the parent/ guardian.
SSY transfer process
The customer must submit an SSY Transfer Request referencing the Bank branch’s address at their current bank or post office.
The current bank or post office will make arrangements to send the original paperwork, including a certified copy of the account, the Account Opening Application, a sample signature, etc., to the new Bank branch address along with a check or money order for the unpaid balance in the SSY account.