What are the principles of SSY account and how to open it?


As part of the Beti Bachao Beti Padhao campaign, a plan called ‘ Sukanya Samriddhi Yojana (SSY) ‘ was introduced by Prime Minister Narendra Modi, the campaign translates into ‘ Girl Child Prosperity Scheme ‘ in line with the objectives.

To tackle the problem of the decreasing girl’s child sex ratio in our nation, a social campaign was initiated on January 22, 2015, by the Government of India. The campaign of Beti Bachao Beti Padhao (BBBP) gives the message’ Save girls, educate the girl.’ It is a joint national initiative of the Ministry of Women and Child Development, the Ministry of Health and Family Welfare, and the Development Ministry of Human Resource.

What is SSY?

SSY seeks to address a significant girl child-related issue–education and marriage. It focuses on ensuring the girl child’s bright future in India by enabling a girl child’s parents in creating a fund for their child’s proper education and carefree marriage spending. For this very purpose, SSY launched the Sukanya Samriddhi Yojna.

What are their principles?

  • Every girl who is an Indian resident from the moment of account opening to the moment of maturity/closure.
  • The account can be opened by parents or caregiver of a girl who has not reached the age of 10 years.
  • Only one account per girl.
  • Accounts can be opened in a family for two girls (including adopted children).
  • You can open more than two accounts in the twins’ scenario.
  • You can open SSY account at any commercial bank post office or permitted branch.

Required documents to open the account:

  • The girl’s birth certificate
  • The guardian’s identity and housing evidence
  • Any other documents that the post office or banks require.

When is it possible to open an SSA account?

Any time between the births of a girl child till she attains the age of 10 years

Deposit Interest- After completion of the SSY’s tenure, i.e., after 21 years of account opening, no interest is payable.

There is no interest after the girl becomes an Indian non-citizen or non-resident.

Withdrawal SSY amount- It is permitted for higher education reasons if the girl has either reached 18 years of age or completed 10th school standard.

SSY interest rate

  • The interest rate remained unchanged to 8.5 percent for the fourth quarter of FY 2018-19, i.e., 1 January 2019 to 31 March 2019.
  • The interest rate for the FY 2018-19 3rd quarters, i.e., October 1, 2018, to December 31, 2018, was 8.5%.

What are the SSY’s tax advantages?

  • To encourage investment in SSY, certain tax benefits were also provided to the SSA:
  • Investments under the SSY system are eligible for deductions under Section 80C, subject to Rs 1.5 lakhs maximum.
  • The interest on this annually compounded account is also exempt from tax.
  • The proceeds received upon maturity/withdrawal are also exempt from income tax.

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