How to open Sukanya Samriddhi Yojana a/c for girl child? Deposit, withdrawal, interest rate explained

New Delhi: Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme that helps parents build a financial fund for their daughters. The scheme encourages families to save for the educational, marriage and future needs of the daughter.

Premature Closure in Sukanya Samriddhi Yojna

In the unfortunate event of the death of the account holder, the account can be closed after submitting an application and the death certificate issued by the competent authority. The remaining balance and applicable interest up to the date of death will be paid to the guardian or eligible claimant. Interest for the period after death until closure will be calculated according to the applicable Post Office Savings Account rate. Premature closure may be considered in certain exceptional circumstances such as a life-threatening medical condition affecting the account holder or the death of the guardian. Supporting documents must be submitted. However, it must be noted that premature closure is generally not permitted during the first five years after opening the account.

Sukanya Samriddhi Yojana Withdrawals

An account holder can apply for a withdrawal of up to 50 percent of the balance at the end of the preceding financial year specifically for educational purposes. This withdrawal is permissible only after the account holder turns 18 or completes the 10th standard, whichever comes first. The account holder must submit an application along with supporting documentation such as a confirmed offer of admission or a fee-slip from the educational institution detailing the financial requirements. Withdrawals can be made either as a lump sum or in installments with a maximum of one withdrawal per year for up to 5  years.

Maturity of Sukanya Samriddhi Yojna Account

The SSY account matures upon the completion of 21 years of the account holder from its opening date. However, early closure is allowed under specific circumstances particularly if the account holder intends to marry before reaching maturity. In such cases, the account holder must submit an application and provide proof of age confirming that they will be at least 18 years old on the marriage date. This early closure can only take place within one month before the planned marriage and must be completed within three months after the marriage. After approval, the account holder can fill out an application form to withdraw the remaining balance along with the applicable interest whenever needed.

Interest Calculation in Sukanya Samriddhi Yojana

Interest is calculated every month based on the lowest balance in the account from the 5th day of the month to the last day. The interest earned is added to the account at the end of each financial year. Any amount of 50 paisa or more is rounded up to the next rupee while amounts below 50 paisa are disregarded. Interest is credited at the end of the financial year even if the account is transferred to another office.

Managing Sukanya Samriddhi Yojna Account

The parent or legal guardian manages the SSY account until the girl turns 18. This allows the gurdian to manage the savings for her education and other eligible future needs. After turning 18, the girl can manage the account herself by submitting the required documents.

Minimum and Maximum Deposit required

SSY accounts can be opened by parents for their daughters at any post office or designated commercial bank branch. The minimum initial deposit is Rs 250 and subsequent deposits can be made in multiples of Rs 50, provided that at least Rs 250 is deposited in a financial year. The total annual deposit limit is capped at Rs 1,50,000. Any excess amount will not earn interest and will be returned. Deposits can be made for a period of up to 15 years from the account opening date.

Documents Required to Open Sukanya Samriddhi Account

The following documents are generally required for opening an account:

* Birth certificate of the girl child.
* Identity proof of the parent or legal guardian as per RBI KYC guidelines.
* Residence proof of the parent or legal guardian as per RBI KYC guidelines.

How to Open Sukanya Samriddhi Account

A parent or legal guardian can open an account for a girl child immediately after her birth until she turns 10 years old. Any girl child who is a resident Indian from the time of opening the account till the time of maturity/closure is eligible for the scheme. Only one account is allowed per child. Parents can open a maximum of two accounts for each of their children. However, there is an exception allowed for more accounts in case of twins or triplets. The account can be transferred to anywhere in India.