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."
View Comments
IS THERE ANY CHANCE TO CHANGE NAME IN SUKANYA SAMRUDHI DEPOSIT ACCOUNT
Dear VENKY ..Yes, can be changed. I believe one has to submit 'self-declaration affidavit', copy of birth certificate and proof of name change. The address proof & ID proof documents of the parent/guardian also have to be carried.
I have open ssa in yearly 10000 . How much amount maturity value.
If my daughter is 18 years old and going to marry.
What are the documents that needs to be produced at the time of Account closure?
I meant, any document(Proof) required that she is going to marry?
Vinod.
Dear Vinod..The money will be paid to the girl child only after she is married. It will be paid to her on providing proof of having done the marriage. One cannot use the money for marriage expense etc.
Srekanth,
Are you sure that the money will be paid only after she is married???
As per the new amendment , if the girl is going to marry then you can close this account after her age of 18 years.
Vinod.
Dear Vinod ..I stand corrected, missed this point.
Yes, one can close the account before the marriage itself but there is no clarity regarding the documents.
Read: SSA & New amendments.
Dear Sreekanth.,
My wishes & regards for all your efforts., I am one among many of your blog readers, really benefited from u r service., In the past you have clarified many of my doubts.,Tks
I am an NRI aged 36, wants to know about investment avenues available for us.,
My requirement is for my child education, marriage and my retirement corpus., My daughter is 6 yrs and my retirement age between 56-60.,
Presently being new to markets, as per your guidelines started investing Mutual funds under sectors ( large cap-Multicap-Balanced fund)., this is the only source presently i am depending on; ( buying gold will be very minimal on an annual basis)
Planning to start SSI for my daughter as an investment option, but as per this new amendments
i cannot commence .,
Other options PPF, Post office savings are not for NRI's Majority of Bonds also restricted to NRI's ( correct me if iam wrong)
FD's in bank as you say cannot meet the inflation; Maintaining my 5 months requirements for emergency needs.,
Kindly guide me.,
KK
Dear KK,
I agree with you that there are very limited suitable options for NRIs now.
As your goals are long-term ones, it is wiser to invest as much as possible in equity oriented mutual funds itself.
Thanks Sreekanth.,
Dear Sreekanth Ji,
Sukanya Smiridhi Account me deposit years 14 se badhakar 15 years krr di gyi h.
Sir m jaanna chata hu ki 1 year jyada deposit krna padega ab to maturity amount
badega ya wahi rhega jo 14 years deposit krne prr tha.....Plzz reply.. Thnx
Dear Mr. Readdy
Meri ladki ki Date of Birth 06/08/2005, he mene ssa a/c. March 2015 me khola he is khate me pese jama kitne age tak ho payange post off. me pata kiya tha to bataya ki ladki ke age 14 sal pure hote hi pese jama hona band ho jayaga meturaty ladki ki age 21 saal pure hone par milege krpya sahi sahi bataye
Thanks
Tara datt
Dear Tara,
The contributions are allowed upto 14 years from SSA account opening date and not based on the Girl Child's age.
sir namskar! meri sali ki ladki mere paas rahati hai jiska age 9+ hai,kya mai SSA scheme k dwara a/c open kar sakta hu,aur 1000/-per month 14 years deposit karne k baad kitna total amount milega.
Dear BRIJESH,
Now that the interest may vary year on year, exact amount can not be calculated.
Assuming 9% interest rate, can expect around Rs 6 Lakh as maturity amount.
Excellent blog sir.Very useful and informative. Keep it up..good work
Thank you dear Sarath..keep visiting!
Hi sreekanth,
I've invested in SSA for my grand daughter who's 1 year old ,I'm the depositor/guardian and would like to claim for 80c exemption ,is it possible ?
Also my son is a software engineer so he keeps going to foreign countries on deputation for 2-3 years continuous duration along with his wife and daughter . So in this case wold my grand daughter be considered NRI and her SSA account be closed by post office .
Please suggest . Thanks in advance.
Dear Mahesh Ji,
1 - Yes you can claim income tax benefits.
2 - That depends on if her Residential status changes to NRI or not.
Kindly go through this article : NRI Residential Status check - online Calculator.
Does the NRI Status apply to children as well. As they don't have any income and associated PAN card.
So how will the NRI status of my grand daughter be governed in Above scenario or does the same rule of 182 days or greater apply to children as well.
Thanks in advance
Dear Mahesh..Very good and valid question, but unfortunately the recent notification is not very clear on this issue.
Hi Srikant,
Last year I have opened SSA account for my daughter (5 years old).
With the new change somehow i have feeling that govt is playing with our money. Now for education they want the school admission fee etc. what if my daughter goes abroad for higher education or what if she doesn't go to college? or she want to run some business? then your money is locked till marriage.
I am also not sure if govt keep on changing the rule for these account then it will be difficult to track.
Let me know your view on this.
Since I opened account which can not be closed now, so I thought of reducing my contribution to approx 50k per year and opt for some equity funds investment.
While my initial plan was to save ~1.25 lakh every year.
Dear Rahul,
I believe that partial withdrawal for higher education in abroad is allowed.
But don't you think that compared to last year, this year they have provided more clarity on many features??
Investments in SSA + Equity funds for long-term can be a better option considering the education inflation rate in our country.
Kindly read:
Best Equity funds.
List of Best Investment Options in India.
Dear Sreekanth,
Thanks for the nice article. I need some clarifications.
1. If my daughter will go abroad to study for 1 to 3 years, then she may comes under NRI category. In such a case there is no interest between these periods. Then how can we continue to deposit without interest?
2. We understood that they gave more clarity at least now after collecting peoples money around 2.8K crores! It should be given earlier itself and it seems Govt. of India playing very well.
3. There is no certainty that the Govt. of India cannot impose new amendments with more restrictions.
Kindly give your comments.
Dear Kumar,
I agree that they should have provided these rules/details while launching the scheme itself, especially on some points like 'child has to be a Resident Indian' through out the tenure...Atleast now they have provided some clarity..
Thank you very much for your kind reply sir.