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1. What is the Sukanya Samriddhi Yojana Scheme?

The Sukanya Samriddhi Yojana (SSY) is a small savings scheme declared by the Government of India, exclusively for the girl child. According to this scheme, an account can be opened in the name of the girl child by her parents or legal guardian until she attains the age of ten years. The scheme is a fragment of GOI’s ‘Beti Bachao – Beti Padhao’ initiative, which is also referred to as the BBB campaign. SSY focuses on encouraging the parents or guardians of girls to build finances for the future, education and marriage expenses of their female child. The Government of India has taken this praiseworthy initiative to change the mindset of people towards our girls. One can open an SSY account at the post office along with some designated banks. The major advantages of an SSY account include income tax benefits and a higher interest rate compared to other small savings schemes.

2. Who can open an SSY account?

The natural or legal guardian can open an SSY account in the name of a girl child from any time after her birth until the time she attains the age of 10 years. Also, you are allowed to open two accounts for two girls only. There are 2 cases in which you can also open a third SSY account. One, when twin girls are born in the first birth, and secondly, when twin girls are born at the time of the second birth. An SSY account can be opened only in the name of the girl child by a depositor.

3. Important details of the SSY account

(i) The annual interest rate that one can benefit from an SSY account is 8.5 percent.

(ii) Sukanya Samriddhi Yojana requires you to make a minimum deposit of Rs. 1000. With effect from 5 July 2018, the government has reduced the minimum investment amount to Rs 250.

(iii) In each SSY account, the maximum deposit amount allowed is Rs. 1.5 lakh in a year.

(iv) However, one can make any number of deposits in a particular month or in a year.

(v) To the extent of deposits made in the SSY account, you can claim tax benefits, a deduction of up to Rs 1.5 lakhs from your total income, under Section 80c.

(vi) Commencing from the date of opening the account, deposits in an account are allowed until the completion of 15 years.

(vii) The account matures after the completion of the tenure which is 21 years. The balance in the SSA, including the interest, is paid to the girl child on submitting an application and proof of identity, residence and citizenship documents.

4. How to Open an SSY account in HDFC?

The SSY account can be easily opened in a hassle-free way through HDFC. In case you do not have an HDFC account, you can open an SSY account by submitting some mandatory documents.

Documents required to open an SSY account in HDFC

  • Birth certificate of the girl child
  • Photo ID of parents or legal guardian
  • Address proof of parents or legal guardian
  • Photograph of the child and parent

Step by Step Process

  • Fill up the form.
  • Submit the documents along with the photos.
  • Deposit the cash (Min of Rs. 250).
  • Once the account is opened, the deposit is allowed through cash, cheque or a demand draft.

Withdrawal Facility

(i) After the account holder turns 18, a partial withdrawal from the SSY account is allowed to meet the expenses related to education and marriage.

(ii) The account needs to be closed in case the beneficiary is married before the maturity of the account.

Maximum number of accounts Up to two accounts for two girl children or three accounts in case of twin girls
Minimum and Maximum Amount of Deposit The minimum amount required as a deposit to open an SSY account is Rs. 250, with an annual limit of Rs. 1,50,000 in a financial year
Tenure of the Deposit The account lasts till 21 years from the date of opening.
Interest Rate 8.5%
Tax Rebate Under 80C of the IT Act, 1961.

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