Till now 7.6 percent interest is being given on SSY. Sukanya Samriddhi Yojana (SSY) is a government-supported savings program that was specially created for the benefit of the girl child.
The government had increased the interest rates of some small savings schemes (Small Saving Scheme Interest Rate Hike) for the January-March 2023 quarter . Although the interest rates of Public Provident Fund and Sukanya Samriddhi Yojana were not increased for this quarter. So far 7.6 percent interest is being given on SSY . Sukanya Samriddhi Yojana (SSY) is a government-supported savings program that was specially created for the benefit of the girl child. The program will help parents secure their daughter’s financial future, including higher education or marriage, as it offers guaranteed interest and tax deductions.
The documents
- SSY account opening form
- Birth certificate of the girl child, bearing the name of the child
- Photograph of the parent/legal guardian of the girl child
- KYC documents (identity and address proof) of the parent/guardian.
SSY Transfer Process
- The customer has to submit an SSY transfer request referencing the address of the bank branch at his current bank or post office.
- The existing bank or post office will arrange to send the original paperwork including attested copy of account, account opening application, sample signature etc. along with check or money order to the address of the new bank branch for the amount outstanding in the SSY account.
- According to the ICICI Bank website, once the transfer documents are received at the ICICI Bank branch, the customer needs to submit a fresh SSY account opening form along with a fresh set of KYC documents.
Features of SSY
- Age of the girl child at the time of opening the account: Age should not be more than 10 years.
- Tenure of Deposit: 21 years from the date of account opening
- Maximum period till which deposits can be made: 14 years from the date of opening of the account
- Tax Benefit: As applicable under section 80C of the IT Act, 1961. Triple Tax Benefit – The principal invested, the interest earned as well as the matured amount are tax free.
- Premature closure permitted: in the event of death of the depositor or in situations involving strong compassionate justification, such as the need for medical care for conditions posing a serious threat to life, unless the Central Government authorizes it issues orders.
- Irregular Payment / Revival of Account: By paying a penalty of Rs.50 per year along with the minimum specified amount per year.
- Withdrawal: For the purpose of higher studies and marriage after the age of 18 years, 50% of the amount in the account will be given by the end of the previous financial year.
