How to Open an SSY Account with State Bank of India?

The Sukanya Samriddhi Yojana (SSY) is a small savings scheme backed by the Government of India exclusively for the girl child. As per this scheme, a parent or legal guardian can open an account in the name of a girl child until she attains the age of ten years.

What is the Sukanya Samriddhi Yojana?

The Sukanya Samriddhi Yojana (SSY) scheme is aimed at encouraging the parents or guardians to build a fund for the future education and marriage expenses of their female child. It is part of the “Beti Bachao – Beti Padhao” initiative of the Government of India, also known as BBB. 

The SSY account can be opened in post offices and some specifically designated banks. The State Bank of India (SBI) is one of the designated banks where its customers can open a SSY account for their girl child. It offers income tax benefits by way of deductions under Section 80C for up to Rs 1.5 lakh and a higher interest rate compared to other small savings schemes.

Key Features of an SSY Account

• The interest rate offered on an SSY account is 8.20 % p.a. (w.e.f 1 July 2024 until 30 September 2024) on a yearly basis.
• The minimum deposit in an SSY account is Rs.250
• The maximum amount that can be deposited in a year is Rs.1.5 lakh per SSY account.
• There is no limit to the number of deposits either in a month or in a financial year.
• An annual deposit of up to Rs. 1.5 lakh qualifies for tax benefits under Section 80C.
• One can continue to deposit in the SSY account till the completion of 15 years starting from the date of opening of the account.
• The account matures after the completion of the tenure which is 21 years. The balance in the SSY, including the interest, is paid to the girl child on submitting an application and proof of identity, residence and citizenship documents.
• Only the girl child, in whose name the account is opened, can withdraw the money from her SSY account upon maturity. The guardian can withdraw the money if the girl child has not attained the age of 18 years.

Who Can Open an SSY Account in SBI?

• An SSY account can be opened by the natural or legal guardian in the name of a girl child from the time of her birth until she attains the age of 10.
• The account can be opened by a depositor only in the name of the girl child.
• A natural or legal guardian of a girl child is allowed to open two accounts for up to two girls.
• One can open a third account in the name of a girl child in a scenario of twin girls' birth as a second birth or if the first birth itself results in three girl children.

Documents Required to Open SSY Account in SBI

Documents required to open an SSY account in SBI

• Birth certificate of the girl child
• Photo ID of parents or legal guardian
• Identity and Address proof of parents or legal guardian, such as passport, Driving license, Voter's ID card,Job card issued by NREGA
• Photograph of the child and parent

How to Open a Sukanya Samriddhi Yojana account in SBI?

SBI allows the opening of an SSY account in an easy and hassle-free way. Follow the below steps to open a Sukanya Samriddhi Yojana account in SBI:

Step 1: Login to the SBI Netbanking portal.

Step 2: Click on ‘Deposit and Investment’ tab.

Step 3: On the next page, click on the ‘SSA Account Opening (by visiting Branch)’ option.

Step 4: The SSA application form will appear. Fill out the form and click ‘Submit’.

Step 5: Take a print out of the form by clicking on ‘Print SSA Application Form’ option. 

Step 6: Visit the bank branch. Submit the printout of the form along with the required documents to the bank and make the minimum amount deposit of Rs.250 to open the account.

What are the Benefits of Sukanya Samriddhi Yojana?

Affordable Payments: The minimum deposit required to maintain an SSY account is Rs.250 per fiscal year. You can make deposits at your convenience up to Rs.1.5 lakh per fiscal year. The payments seem very affordable for people from all sections of the society. Even if you miss a payment for a year, a penal charge of Rs.50 will be levied on the missed minimum payment of Rs.250, but the account will be continued.

Educational Expenses Covered: When the girl attains 18 years or passes 10th standard, you can withdraw 50% of the account balance as of the previous financial year's end to meet your girl's educational expenses. This can be availed by submitting the proof of admission.

Tax Benefits: You can claim tax benefits on the deposits you make towards the account, i.e. up to Rs.1.5 lakh per fiscal year under Section 80C of the Income Tax Act, 1961. The interest earned through this account is exempt from tax. Also, the maturity amount is also tax-exempt.

Attractive Interest Rates: The interest rate applicable to SSY accounts has always been high as compared to other government-backed schemes. Currently, the rate is at 8.2% p.a.

How to Calculate Sukanya Samriddhi Yojana Interest?

The interest for the SSY account is calculated on the lowest balance for the calendar month, i.e. between the fifth day of the month and the end of the month. So ideally, an individual should try to deposit the sum of money before the 5th of every month. The interest will be credited once, at the end of each financial year.

Generally, you can use the below formula to calculate the interest earned on an SSY account: 
A = P(1+r/n)^nt 
Here 
P = Initial Deposit 
r = Rate of interest 
n = Number of years the interest compounds 
t = Number of years 
A = Amount at maturity

Since the interest accrued on an SSY account is compounded on a yearly basis, it may not be a simple task to manually calculate the interest. 

Instead, you can use our Sukanya Samriddhi Yojana Calculator to arrive at the maturity amount upon entering the details, such as probable investment amount per year, the age of the girl child, and the account commencement year.

How to Pay for Sukanya Samriddhi Yojana Online?

You have to download the IPPB app on your smartphone to make online payments towards your SSY account. Through this app, you can set standing instructions so that a specified amount will be transferred online to your SSY account. Here is the step-by-step procedure:

Step 1: Transfer money from your bank account to the IPPB account.

Step 2: On the IPPB app, go to DOP Products and choose the Sukanya Samriddhi Yojana account.

Step 3: Enter your SSY account number and the DOP customer ID.

Step 4: Choose the amount you would like to pay and the instalment duration.

Step 5: IPPB will notify you of the success of setting up the payment routine.

Step 6: Each time the app makes the money transfer, you will be notified of the same.

How to Claim/ Withdraw Sukanya Samriddhi Yojana?

You must submit the duly filled withdrawal to SBI to withdraw SSY account money.

In order to claim or withdraw prematurely, you need to satisfy some conditions, such as for marriage expenses or for the higher education of the girl child.

Upon maturity of the account, the amount will be paid to the girl child holding the account.

In another case, you may prematurely close the account and claim the deposit amount only after completing five years of account opening, for the following reasons:

• On the death of the account holder.
• A life-threatening disease of a/c holder.
• Death of the guardian who operated the account.

Which is Better - PPF or Sukanya Samriddhi Yojana?

PPF is a government-backed retirement saving scheme whereas, SSY is a government-backed small savings scheme dedicated to girl child development. Both accounts provide tax benefits. 

While a PPF account can be opened by anybody, an SSY account can only be opened in the name of a girl child before she attains the age of 10 years. PPF balance can be liquidated to a certain extent, while the same may not be true for the SSY account. 

Here is a table that gives a comparative picture of both schemes.

Both schemes are designed for different purposes and therefore, picking a better option between the two schemes is tough.