Sukanya Samriddhi Account Deposit Scheme is one of the most popular small saving schemes in India. This scheme was launched in January, 2015. Since then, it has been estimated that around 76 Lakhs Sukanya Samriddhi Yojana Accounts have been opened across the country. The amount collected under these accounts is around Rs. 2, 838 crore (up to October, 2015).
Sukanya Samriddhi Account (SSA) can be opened in the name of girl child only. Post offices and Commercial banks (Public / Private Sector) have been authorized by the Govt to open SSAs.
Though Sukanya Samriddhi Scheme is a simple financial product, there has been some confusion with respect to some of its features, operation of account, premature withdrawal, account transfer, NRI & SSA, closure of account etc.,
To clear this confusion, the govt has recently issued a notification highlighting some new changes / amendments to ‘Sukanya Samriddhi Account Deposit Scheme’.
15 New Amendments to Sukanya Samriddhi Account Deposit Scheme Rules
Below are some of the revised rules of Sukanya Samriddhi Account;
- Definition of Account Holder & Beneficiary : Account holder means a person in whose name the Account is held. Girl child is the beneficiary under SSA. The amount can be deposited by the account holder (girl child) or by her parent/guardian.
- SSA & Adopted Daughter : The new rules have made it clear that Sukanya Account can be opened even in the name of an adopted Daughter.
- Resident Indian Girl Child : Only an Indian Resident Girl Child can be the Beneficiary under the SSA Rules.
- Rate of Interest : As per the old rules, the rate of interest will be declared on an yearly basis. Now, the Government can amend the Interest Rate from time to time. (Read : Latest Small Saving Schemes & Rate of Interest – New guidelines)
- Minimum Amount & Account Default Rules :
- The minimum amount that has to be deposited in SSA is Rs 1,000 p.a.
- If the min amount is not deposited, account will be treated as ‘Account in Default‘ and such accounts can be regularized on payment of a penalty of fifty rupees per year.
- The new rules also specify that if the defaulted account is not regularized within fifteen years of opening the account, then the whole deposit amount (including the deposits made prior to the date of default) shall be eligible to get Post Office Savings Bank interest rate at the time of its maturity.
- In case if the reason for default is due to the death of the ‘Guardian’ of the child, the above rules won’t be applicable. The account holder will get normal SSA interest rate.
- Maximum Deposit : The maximum amount that can be deposited in SSA is Rs 1.5 Lakh per fiscal year. In case deposit in excess of one lakh fifty thousand rupees in any financial year is accepted due to any accounting error, such excess amount will not be eligible for any interest. The depositor can withdraw such excess amount anytime.
- Online Payment Mode : As of now, deposits can be made in the form of cash/by cheque/by DD only. The new rules have clarified that ‘online payment mode’ (electronic transfer) is also acceptable provided that the post office or bank has access to CBS facility (Core Banking Solution).
- Interest Calculation Procedure : Under SSA, the interest is compounded on yearly basis. The interest amount is calculated for the calendar month on the lowest balance in an Account on the deposits made between the close of the tenth day and the end of the month. So, it is now clear that no interest is paid on deposits made after 10th of the month for that specific month.
- Duplicate Passbook : In the event of loss of passbook, a duplicate passbook can be issued on payment of Rs 50. The guardian or the account holder has to submit a written request to get a duplicate SSA passbook.
- Transfer of Account : SSA can be transferred from a bank to a post office branch (vice versa) at free of cost. The guardian or the account holder has to furnish proof of shifting of residence. Even if you are not relocating, you can transfer the account by paying a fee of Rs 100 to the post or to the bank to which the transfer is being made.
- Withdrawal for Education Purposes :
- Withdrawal of upto a maximum of fifty per cent of the balance in the Account at the end of the financial year preceding the year of application for withdrawal, shall be allowed for the purpose of higher education of the Account holder.
- Provided that such withdrawal shall not be allowed unless the Account holder attains the age of eighteen years or has passed tenth standard, whichever is earlier.
- The withdrawal can be made in lump sum or in installments not exceeding one per year, for a maximum period of five years.
- The guardian or the account holder has to submit a documentary proof of confirmed admission in an Educational institution (or) a Fee-slip from such institution.
- Account Closure & Age Proof : To close a SSA account, age proof has to be submitted to prove that the girl child is not less than 18 years of age.
- Account Closure & Marriage : Earlier premature withdrawal is allowed after the girl child’s marriage takes place but now withdrawal is possible even if Depositor is intending to get married.
- Change of Citizenship :
- If after opening of account, Account holder becomes a non-citizen or non-resident of India (NRI), he/she (guardian/parent/girl child) has to intimate the same within a period of one Month and her account will be deemed as closed.
- Interest is not be paid on such Accounts.
- Post Account Closure & Interest Payment : As per the old rules, post maturity (after 21 years from the date of account opening) even if account holder does not close the account he/she was eligible for interest till the final closure of the account. But as per the new amendments, if an account completes twenty-one years, no interest amount is payable.
I hope you find this post useful and informative. Are you contributing to Sukanya Samriddhi Account Deposit Scheme? Kindly share your experience and views on SSA.
(Image courtesy of chubphong at FreeDigitalPhotos.net) (Post published Date : 05-April-2016)
This post was last modified on July 11, 2023 11:12 am
Sreekanth ReddySreekanth is the Man behind ReLakhs.com. He is an Independent Certified Financial Planner (CFP), engaged in blogging & property consultancy for the last 14 years through his firm ReLakhs Financial Services . He is not associated with any Financial product / service provider. The main aim of his blog is to "help investors take informed financial decisions." "Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions. The information provided, therefore, should not be viewed as financial, legal, accounting, tax or investment advice."
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Hello Sir
Can we both husband and wife open SSY account in the name of same Girl child ?
Also we have to deposited maximum 1.5 lc per annum or 3 lac per annum??
Currently iam deposit 9k per month so if my wife wants to open SSY she have to max diposit 3 k per month or she can deposit 12 k per month or 1.5 l per annum
Dear Sachin,
I believe that only one parent can open a Sukanya Samridhi Yojna account in the name of a girl child. The parent who will contribute to the scheme will be eligible for tax deduction (of up to Rs 1.5 Lakh).
Hi Sir,
First of all thanks a lot for this wonderful blog. Really helps a lot of people.
My father opened Sukanya Samrudhi account for my child in our village post office. The post office employees did not object opening the account though the account is opened by grandfather due to their ignorance.
When I enquired in the nationalized bank, they said account opened by grandfather is illegal unless he is the legal guardian of the child. Both my husband and myself are working and we are guardians of our kids.
Since he already opened, I'm unable to open one for my child.
Could you please tell me,
1. Is the account opened by grandfather is legal or illegal? I belief he the post office employees did not ask for affidavit from my father(I read in another website that if SSA is opened by non-parent they should submit affidavit saying they are guardian of child)
2. If it is illegal, can I transfer it to my name? What is the procedure?
Thanks,
Ambily
Dear Ambily,
The role of legal guardian in Sukanya Samriddhi Account would only come in picture wherein either both the parents are dead or not capable of opening or running the account. While opening of the account, the legal guardian would possibly have to submit an affidavit or proof that he/she is the sole guardian of the girl child.
I am not sure what could be done in this case. I believe that you can get the name changed from Guardian to Parent's, kindly check if this is possible at Post office.
Reddy sir many thanks substantially I noticed that you just square measure responsive all question it's very appreciate .
Thank You
With Regards
Prabir
prabirkumarpanda**@gmail.com
Thank you dear Prabir for your appreciation, keep visiting ReLakhs.com !
Dear sir, if SSA is opened for the girl child at the age of 9.5 years, and her marriage may fixed at the age of attaining 22 years, then the account can be closed and money can be withdrawn or not.
Dear BIKRAM ..Yes, the account can be closed and can withdraw the accumulated money.
Dear Sreeekanth Sir ,
I have Sukanya Samrudhi account with Bank of India. They don't have online transfer facility. So each and every time i need to go to bank to deposit amt in Sukanya Samrudhi account. Bank not allowing to transfer the account to another Bank. What should i do? Is it possible to close the Sukanya Samrudhi account and open in another Bank.
Dear Ratish,
You need to approach Bank of India branch and request for the transfer. In case they do not co-operate, you may kindly escalate the issue to higher-ups at bank.
Related articles :
Article - 1
Article - 2
Escalated but they are bound with their policy. Is it possible to close the account and open in another bank?
Dear Ratish,
I think the closure of account is possible on certain conditions only. (On unfortunate death of depositor or girl child ..)
You may contact banking ombudsman and escalate this issue.
Here is the link to escalate the issue..click here..
Hi Sreekanth,
Is it required to provide both ID Proof of Mother and Father for opening SSY a/c . Can a grandfather open the SSY a/ c on the name of her grand daughter. If a bank say that Grandparents (maternal side ) cannot open the SSY a/c on the name of her granddaughter then? Whosoever opens the SSY a/c in a bank then they should have their bank a/c with the bank?
Dear Sapna,
If parents are alive, only they can contribute.
Else, grand parent can contribute as a guardian.
I dont think it is mandatory to have a bank account with the same bank, but banks may insist on having one.
Hi Sir,
Is it mandatory to close the account at the time of marriage of the girl child?
My daughter was 10 at the time of opening of a/c. if she gets married at say 25, is it compulsory to close the a/c or she can operate it for 6 more years?
Dear Ankur,
The maturity of the account is 21 years from the date of opening of account or if the girl gets married before completion of such 21 years (whichever is earlier).
I am NRI I joined sukany samridiacount. That time I don't NRI. Manger also don't know. Now I try to close my Acount but manager told this acount can't close now what can i do. My wife and daughter not a NRI status. Shi is staying in India
Dear Jabeer,
Kindly check with your banker if it is possible to change the depositor name to your Spouse name. I am not sure if this is allowed, but can be worth asking them.
If its not possible, suggest you to close the account immediately (as per govt notification).
Dear Sir,
i have opened a SSYA in post office on dt. 15-02-2017 (F.Y. 2016-17) and in this scheme i can deposit maximum Rs. 1.50 Lakh per financial year for 14 years from opening of account, means (1.50 Lakh X 14 =21 Lakh). Now my question is that i can deposit amount for 14 years till 15-02-2031 (F.Y. 2030-31).
Sir, during these 14 years, the numbers of financial years are containing 15, so can i invest Rs. 1.50 Lakh per F.Y. for 15 year or not. I am giving the example below for 15 financial years.
e.g.
account opening date 15-02-2017 and last date of deposit is 15-02-2031.
2016-17 Rs. 1.50 Lakh
2017-18 Rs. 1.50 Lakh
2018-19 Rs. 1.50 Lakh
2019-20 Rs. 1.50 Lakh
2020-21 Rs. 1.50 Lakh
2021-22 Rs. 1.50 Lakh
2022-23 Rs. 1.50 Lakh
2023-24 Rs. 1.50 Lakh
2024-25 Rs. 1.50 Lakh
2025-26 Rs. 1.50 Lakh
2026-27 Rs. 1.50 Lakh
2027-28 Rs. 1.50 Lakh
2028-29 Rs. 1.50 Lakh
2029-30 Rs. 1.50 Lakh
2030-31 Rs. 1.50 Lakh
As per SSYA policy i can deposit maximum amount Rs. 21 Lakh in 14 years from date of opening of account, but according above calculation we have deposited 22.50 Lakh in 14 years from date of opening of account.
Sir, you are requested please explain how much maximum amount i can invest in SSYA in 14 years.
Thanks & Regards,
Sampuran Saini
Dear Sampuran ..But why did you consider 15 * 1.5 Lakh instead of 14 * 1.5 Lakh??
Sir, because purposes of income tax, I want benefit of numbers of 15 financial year, in 14 year duration.
Dear Sreekanth,
Suppose SSA opened by father and for tax benefit he wants to change name to mother as deposited, is this possible? If yes then how to apply for the change. Can tax exemption can be taken by Mother under 80C without changing the name? Also is it possible to transfer SSA account from post office to any other bank as depositing money through bank is easy (we can also use internet banking)
Looking forward to hear from you.
Sincerely,
Dear Ambikesh,
I believe that depositor can be changed, but i am not very sure on this.
Yes, you can transfer the SSA account from PO to a bank branch.