How to apply for Sukanya Samriddhi Yojana? Here's all you need to know

I am told that our elder daughter is not eligible for opening a Sukanya Samriddhi Yojana account as she has turned eleven this year. Is there any relaxation in this regard, and what are the scheme's highlights? Y Neeraja, KTPS, Paloncha

The Sukanya Samriddhi Yojana is a small deposit scheme introduced as part of the "Beti Bachao, Beti Padhao Yojana" to benefit the bright future of a girl child. Sukanya Samriddhi Yojana is a small deposit scheme for your girl child. The chief purpose of the SSY scheme is primarily to cater to the financial needs of a girl child from education to marriage. Parents can open a Sukanya Samriddhi Yojana account in the name of a girl child until she attains ten years. Providentially, the government provided a grace period of one year, allowing parents to open an SSY account within a year of a girl turning ten years of age. Legal guardians can also open the SSY account. One can open a Sukanya Samriddhi Yojana account for the girl child in any commercial bank or in any post office.

The account holder will have the flexibility of transferring the SSY account from one bank branch to another bank branch or from one post office to another within India. One family can open up to two SSY accounts for two girl children in one family, which means the maximum number of accounts that can be opened by a family is restricted to two accounts. However, families or parents with triplets are allowed to open three SSY accounts.

In the case of three daughters resulting in twins from the first or second delivery, then the family is eligible to open up to three SSY accounts. The initial deposit amount is as little as Rs 250, with a multiple of Rs 150 after that. The maximum cap of the deposit is Rs 150,000 in a financial year. No more than one account in the name of a girl child is permitted. Premature withdrawal will be allowed to meet the higher education expenses of a girl child. The account can be prematurely closed due to the girls' marriage after she attained the age of 18 years. The SSY account shall mature upon completion of 21 years from the opening date.

Returns earned and maturity amounts are tax-exempt in the scheme. Sukanya Samriddhi Yojana comes with little or no risk. Small amounts can be deposited into a girl child's Sukanya Samriddhi Yojana accounts. It provides a lucrative rate of interest. The Sukanya Samriddhi Yojana is currently offering 7.6 per cent interest for the quarter ending March 31, 2022. The interest amount is credited at the end of the financial year. Further, Income tax rebate under Sec 80C can be availed by the parents. The primary objective of the SSY scheme is to ensure empowerment in the true sense, educate and acquire adequate knowledge and skills to compete. SSY inculcates financial discipline, and the importance of savings, besides self-reliance without dependence on family and others. They can make their dreams come true concerning quality education and standard of living.

The scheme aims at providing financial independence and economic freedom, and well-being of girl children and women. SSY accounts can be closed prematurely for the girl child's treatment for a life-threatening disease or in the event of the death of the girl child or the death of her legal guardian. Non-deposit of the minimum amount in any of the financial years or several years, the SSY account will be termed as the default account. In the event of default, the balance in the account will still earn interest till the maturity period.

The Sukanya Samriddhi Yojana account holding a girl child is allowed to withdraw up to fifty per cent of the accumulated amount in the account once she turns 18 years. Sukanya Samriddhi Yojana account gets matured after completion of 21 years since the opening of the account or on the day of her marriage, whichever is earlier. Spread the awareness among parents who want to open a Sukanya Samriddhi Yojana scheme for their girl child. Opening a Sukanya Samridhi account is convenient and hassle-free. The banks or post offices require minimal documents like KYC, birth certificates and identity cards of girl child and parents or legal guardian. Many private banks such as HDFC and ICICI are also offering SSY accounts.

(The author is a SEBI licensed Research Analyst. The alumnus of the Indian Institute of Foreign Trade (IIFT), he had held leadership roles at National Geographic, Reliance Radio Television Luxembourg, STAR TV, etc)