5 unknown facts about Sukanya Samriddhi Yojana (Account) Rules

Many individuals may be already investing in Sukanya Samriddhi Yojana (Account). However, are you aware of the few facts of  Sukanya Samriddhi Yojana (Account) Rules? Let us discuss about these in detail.

 5 unknown facts about Sukanya Samriddhi Yojana (Account) Rules

Sukanya Samriddhi Yojana (Account) is a Small Savings Special Deposit Scheme for the girl child. This scheme is specially designed for girl’s higher education or marriage needs.

5 unknown facts about Sukanya Samriddhi Yojana (Account) Rules

# What if you deposit more than Rs.1,50,000 in Sukanya Samriddhi Yojana (Account) in a year?

We all know that the maximum yearly limit for Sukanya Samriddhi Yojana (Account) is Rs.1,50,000. Here, a year means financial year which starts from 1st April of the year to 31st March of the next year.

But what if you deposited more than Rs.1,50,000 unknowingly?

Banks or Post Offices usually not accept beyond Rs.1,50,000 per year. However, if due to any accounting error, they accepted also, then such amount which is more than Rs.1,50,000 will not earn any interest.

It will be kept idle with Government. However, an amount deposited in excess of an annual ceiling of Rs.1,50,000 may be withdrawn anytime by the depositor.

Hence, keep an eye on this maximum limit of investment per year. Otherwise, your money will not earn a single rupee of interest.

# Default Account will only earn savings account interest rate after 15 years

The yearly minimum deposit is prescribed as Rs.250. If you do not deposit this minimum yearly amount, then such accounts are considered as DEFAULT accounts. To make it active, you have to make a payment of Rs.50 per year as a penalty along with the such minimum specified amount for the year or years of default.

However, if such default account is not regulized within the 15 years from the date of account opening, then the whole deposit, including the deposits made prior to the date of default, will be eligible only for interest rate prescribed for Post Office Savings Bank at the time of its maturity.

If any amount credited wrongly by way of interest into an Account under default will be reverted to the Government account as soon as it comes to the notice of the Bank or the post office concerned.

Hence, never default your Sukanya Samriddhi Yojana (Account) beyond 15 years from the date of account opening.

However, this rule not applies to Sukanya Samriddhi Yojana (Account)s where the account turned default due to the death of the guardian of the account holder.

# No interest after maturity

We all know that the maturity of the Sukanya Samriddhi Yojana (Account) is 21 years from the date of opening of an account or if the girl gets married before completion of such 21 years (whichever is earlier).

However, many feel that Sukanya Samriddhi Yojana (Account) offers best interest rate and anyhow the maturity amount is completely tax-free.

However, you must also know the facts that no interest will be payable once the Account completes 21 Yrs from the date of its opening.

Hence, if you keep Sukanya Samriddhi Yojana (Account) active even after 21 years from the date of its opening, then your account will not earn a single rupee of interest. Because of this, it is always best to close it immediately once the account completes 21 years.

# Premature Withdrawal Rules

You can withdraw 50% of the accumulated amount in Sukanya Samriddhi Yojana (Account) can be withdrawn for girl’s higher education. The account’s balance at the end of the preceding financial year is used for the calculation.

Hence, for last FY the balance is Rs.10 lakh and your daughter is more than 18 years old, then you can withdraw Rs.5 lakh for her higher education.

However, such withdrawal will not be allowed unless the child attains the age of 18 years or has passed the tenth standard, whichever is earlier.

The amount of withdrawal is restricted to the ACTUAL demand of fee. Hence, you have to provide the proof regarding the fee details.

# Transfer of Sukanya Samriddhi Yojana (Account)

It is not mandatory for you to hold the account up to 21 years completion in the same Post Office or Bank. You can easily transfer your Sukanya Samriddhi Yojana (Account) anywhere in India. It may be from or to post offices and from or to Banks and between post office and Bank, at FREE of cost on furnishing of proof of shifting of residence of either the guardian or the Account holder and otherwise, on payment of a fees of one hundred rupees to the post office or the Bank to which the transfer is made.

Refer my earlier post in this regard “Transfer Sukanya Samriddhi Account from Post Office to Bank“.

Hope these unknown rules about Sukanya Samriddhi Yojana (Account) made you to be cautious while operating or depositing. Let me know if you have any doubts.

Refer our earlier posts related Sukanya Samriddhi Yojana (Account):-

103 Comments

  1. Hello sir, we had opened an sukanya yogana account in the year 2018.but as my husband went abroad immediately there after we didn’t deposit in the account for two years.. Just need to know whether we have to personally go in the bank and pay the penalty or after depositing amount it gets automatically deducted from the account. We r ready for the penalty and continue the account. Thank you in advance.

    Reply
    • Dear Regina,
      It depends on the bank where you have SSY. Hence, better you interact with customer support team of the bank.

      Reply
  2. Dear sir,
    I am paying SSA sice 2017. I would like to stop it now. Can I get back the money which I was paid from last three years.

    Reply
  3. I had opened the account 03 years back and since then I am depositing some amounts not at regular intervals…sometimes after a gap of 5 months or 6 months ..it is not regular actually. But in a financial year some deposits is made it is in my knowledge. Is this practice earning interest or not

    Reply
  4. Hi

    I have taken this scheme 3years back where as the interest rate was closed to 11%. It is been gradually govt reducing the rate and now it is 7% plus. So, i believe in coming years it is going to be more less. Should we have to continue with this scheme?

    Regards,
    Srikanth

    Reply
    • Dear Srikanth,
      Treat this product as your debt part of kid educational or marriage goal. Above that even if the interest is down, who is currently giving your 7% tax-free returns?

      Reply
  5. sir I have not able to paid any money for Sukanya samruddi yojana account for the year 2019 2020. Can I possible continue
    sukanya samruddi yojana account? Or possible continue that account

    Reply
    • Dear Tavern,
      Yes, you can pay the penalty for last year and invest the minimum amount and activate the account.

      Reply
  6. Hi sir,

    This year (April 2020) I have not yet received interest amount in my daughter SSYA account. What could be the possible reasons? And previous year (2019) interest was credited exactly on 1st April.

    I have made proper investment (1000+ each month) every month from April 2019 till March 2020.

    Could you please let me know whom to contact? I have SSYA account in hdfc bank.

    Reply
    • Dear Raghu,
      Due to lockdown, there may be a certain delay. Wait for a few days.

      Reply
      • Thanks Sir, Even I am thinking it’s because of lockdown. Reason for posting it was because few my colleague has received interest amount in SSY account. Even they that it in HDFC bank. So though of asking whom should we contact for such issues.

        Reply
  7. Dear Sir,
    As we all aware the current financial year has been extended upto June 2020, So if I open SSA now, Will I have time only till June to deposit 1.5 Lakh ?

    Reply
    • Dear David,
      FY not extended. But investment up to June 30th are eligible to claim for deductions for the last FY. You can open SSY now also and can deposit.

      Reply
  8. Dear Sir

    I have opened the account on 22nd April 2019, I was under the impression that one year completes on 22nd Apr 2020.
    Even the SBI bank official confirmed the same while opening the account.

    Nevertheless, I have couple of questions:
    1). How do I make payment for the last year?
    2). Can we make deposits of different amounts every year?

    Please guide.

    Regards
    Swarup

    Reply
    • Dear Swarup,
      For the last FY you are unable to invest now. Yes, you can deposit different amounts for different years. Keep one thing in mind that irrespective of the date of your opening of the account, the deposit restrictions and maturity is always based on Financial Years.

      Reply
      • Dear Sir

        Thanks for your prompt reply and for putting up such a nice blog about the scheme. Your article really helps.
        I will avoid the mistake next time.

        Regards
        Swarup

        Reply
  9. I have started account on 29 th December .When 1 year deposit period end ?.on 31 St March 2020 or 29 Dec 2020?

    Reply
  10. Who is the legal authority of the corpus, Parent or the child? or Who will be legally withdraw the corpus?

    Reply
  11. I m a army person, may I open a ssy account for my daughter? And wht hpn with my SSY ACT, if I will die after 4-5 yrs of this.

    Reply
    • Dear Ravindra,
      Yes, you can. If the death of guardian happens, then another guardian can continue or can be closed also.

      Reply
  12. Hello Sir,

    What happens to the SSY account when there is a change in residency status of the account holder (Both Parent and Child become citizens of another country). Should we immediately notify the bank ? Is premature closure permitted for NRIs just like you have mentioned i the 2019 PPF rule changes? At what stage it stops earning interest.

    Thank you

    Reply
    • Dear Ganesh,
      There is no clarity on NRI front for PPF account itself as of now. Many are interpreting it as per their wish.

      Reply
  13. For my Sukanya account ,Pnb bank entered one letter of my PAN Card wrongly.How it is possible to edit

    Reply
  14. Dear sir
    Mene 2 yaer pahle apni beti ke nam per sukanya yojna account open kiya tha jisme mene 10000 rs deposit kiy the ab meri financial condition kharab hai isliy me account closed karna chahta hu so please help me

    Reply
  15. Hi,
    What is the limit of investment for 2 daughter. Is it capped at 1.5L together, or I can invest 1.5 L for each daughter.

    Thanks.

    Reply
  16. Thanks for providing information on SSY. I opened SSY account when my daughter was 10 yrs, how long can I continue with deposit to get interest….till 15 yrs from opening the account or till my daughter completes 15 yrs. I inquired at multiple banks but no one has complete knowledge. Please help with exact deposit tenure and also government website link that contain this information which I can present to bank officials.

    Reply
    • Dear Sachin,
      Maturity is at your daughter’s 21 years of age. However, you are allowed to deposit up to 14 years (normally). But in your case your daughter is 10 years already, you can deposit up to her 21 years of age. Hence, it is whichever is earlier. Means either 14 years completion or 21 years completion. In your case it is 21 years of girl child is early. Hence, you can deposit up to her 21 years of age.

      Reply
  17. If account holder and guardian both are died then the amount given to legalheir or not

    Reply
  18. After 15 years of deposite, Who will be legal owner of that amount?
    Depositor (father/mother) or daughter (jiske naam par account h)???

    Reply
    • Dear Anonymous,
      For parents, SSY not acts like GUARDIAN. Hence, the ownership will remain with parents (irrespective of kid’s age).

      Reply
  19. Dear Sir,
    I have paid 13 monthly instalment to ssy and now I wish to discontinue.
    Please advice how I withdraw money earliest?

    Reply
    • Dear Prem,
      Refer below lines:-
      Yes, it is allowed in case of death of account holder i.e. girl child. The balance along with interest earned will be payable to guardian. Apart from this if, you are really facing financial difficulties and Government satisfy with such hardship, then it may allow premature closure. Examples of such extreme difficulties are like medical support in life-threatening diseases, death, etc.

      Reply
  20. What is frequency of credit of interest.I opened account in Feb 2019 deposited multiple times.But interest has been credited only for my first deposit which I made in Feb.Is the interest credited quarterly or yearly basis?

    Reply
  21. I have opened SSY account for my daughter on 15th Sep 2018. Now when is the next year term starts. Is it from Financial year(Apr 2019) or exact one year after the account opening date?

    Reply
      • Thank you for your quick reply. You mean everybody have to pay before Apr 10 of every year if we are paying yearly once to get full year interest?

        Reply
          • How is the interest calculation done? I know you have mentioned yearly but then what is logic of investing before 10th of April for a financial year. What if i do 2 deposits of Rs.50000 in a year. Will the interest calculation differ then?

            Reply
            • Dear Saurabh,
              Assume that you invested before 10th May 2020, then your money will earn the interest for 11 months. If you invested after 10th May 2020, then your will earn 10 months’ interest.

              Reply
  22. I want close my daughter ssy account.will I get back my deposited amount? And what is the procedure?

    Reply
    • Dear Manju,
      Premature closure is allowed only if the death of the child or if you are not competent enough to invest in the future.

      Reply
  23. Sir,
    (1) Can I contribute some funds to the SSY A/C of my
    niece, as a gift within the limit of Rs.150,000/- and,
    (2) Is it legal/permissible to deposit funds at different
    rates for different months within a financial year and,
    at different rates for different financial years ?
    With kind regards,
    Vijay.

    Reply
  24. How much we can deposit in a single day

    Reply
  25. Your Post was very nice Basu. I would have landed up in investing more than 150000 rs in Sukanya account. Your post helped me not to do this error. Thanks for your help. God bless you.

    Reply
  26. Sir,
    I have 3 daughters. I opened 2 Accounts in my Ist and 2nd daughter’s name in SBI (Total of Rs. 2L each accounts in last 3 years). After that my wife opened another account in the Post office in the name of my 3rd daughter (Rs. 1.35L in last 2 years). Is it permissible to open 3 accounts in the name of husband and wife. If not what is the option for the already operating 3rd account.

    Reply
    • Dear Ben,
      Sadly NO. Hence, better to approach the bank and try to close the third account.

      Reply
      • Dear sir,
        Thanks for your reply. If I the bank objects for closing the account, Will it be able to withdraw the funds in the future ?, ie after the maturity.

        Reply
        • Dear Ben,
          They have to close. If they say NO, then let them give in writing on this aspect.

          Reply
  27. Sir,
    This is Satish from Bangalore. My friend and his wife have inadvertently opened separate SSA account for their only girl child. How to close one account & continue the other.

    Reply
    • Dear Satish,
      Let them retain one account of their choice and apply for closure of another.

      Reply
  28. Sir ssy 1 year paied amount and stop the account money will return or not

    Reply
  29. dear sir, please suggest, my ssy account related to gujrat, now am in lucknow up. could i deposit this yr premium from any post office at lucknow..?
    without tfr the acct.

    Reply
  30. I amsr citizen aged 70 yrs.
    would like to have ur guidance to choose the best options for investment.
    Majority of my investment is with bank FDs

    Reply
    • Dear Gopalakrishnan,
      Best option depends on many criteria. Hence, it is hard for me to say BLINDLY.

      Reply
  31. Hi Basu
    These schemes are not at all attractive. As they have long waiting period. In your opinion which are the best investment instruments for non-senior citizens?
    For senior citizens I always prefer scss is all time favt. But for non seniors could not find good interest returning instruments for short periods say 1 to 5years. Nsc is bit better but lacks liquidity.

    Reply
    • Dear Surya,
      If your goal is matching the maturity period, then use such products as debt part of your portfolio.

      Reply
  32. Hi Basu,

    I had opened SSY account 4 years back with 1k as opening deposit. But unfortunately, I could not deposit any money after that. Now, I would like to start depositing in this scheme for my daughter who is 11 yrs now. Please suggest if it make sense if i start now and what could be the returns on maturity if i starts now.

    Reply
    • Dear Sandy,
      Treat SSY as debt part of your investment. Returns depend on how the Government declares on a quarterly basis.

      Reply
      • Hello Basavaraj,
        My case is also same as mentioned by Sandy.
        I opened SSY account in june 2015 with 1k opening deposit in BOI. But couldn’t deposit any amount after that. Now I want to deposit the money regularly into the account.
        Bank is saying that your account is not yet deactivated and you can deposit the money. They are saying that in BOI, there is no process of reactivating the account.
        But I want the confirmation from the bank that I have reactivated the account and my account should not be considered as defaulter account henceforth. What should I do ? Is there some process ?
        (My main concern/worry is, if the account is not reactivated, and if I go on depositing the money for next say 10 yrs, at the time of maturity/withdrawal, the bank/govt should not say that your account was defaulter so you will get only the saving account’s interest and not the SSY interest)

        Reply
        • Dear Sandip,
          Issue is with Bank. If they don’t have a system, then let them modify to make sure that the rules can be followed properly. Let them show the proof that your account is still ACTIVE even after so many years of no contribution.

          Reply
          • Hello Basavaraj,
            Exactly.. Or else I am thinking, if the bank doesn’t respond then its better to transfer the account to some nearby Post office. I think the process of Post office is better than the banks in case of SSY accounts.. What’s your opinion abt this ?

            Reply
  33. Sir, I have one doubt that my wife opened a SSA account of my daughter & she signature
    Guardian column.
    Therefore can i submit tax rebate in SSA accounts.
    Please give me reply.

    Reply
    • Dear Ram,
      If the source of investment is from your income, then yes you can submit the tax rebate.

      Reply
  34. Max limit is 3 lakh or 1.5 lakh for two daughter. I know max 1.5 lakh can be deposited in one account

    Reply
    • Dear Guest,
      If there are two kids, then the maximum limit is Rs.3 lakh.

      Reply
  35. I am maxing out PPF already every year. Do you recommend having SSY account of my daughter and putting another 1.5L since the return is Tax-Free and higher than FD?

    Can my HUF invest in my daughter’s SSY and claim exemption under 80c?

    Reply
    • Dear Ashit,
      Whether it is PPF or SSY, treat these products as debt part of your investable amount. Relying on such products 100% for your long-term goals is not worthy.

      Reply
  36. In SSA Account

    If 2 Daughter than Can Deposit 1.5 Lakh in both Account Separately or Total 1.5 Lakh in Both Account. Same Tax Benifit in both accounts or Single??

    Reply
    • Dear Sumit,
      As Government has not specified anything in this regard, I assume you can deposit Rs.3,00,000 the maximum.

      Reply
  37. Dear Sir,
    U have mentioned that interest will not be earned after completing 21 years if the account is still active. So, the previous years interest will be credited or not to the final amount?

    Reply
    • Dear Gurukanth,
      Whatever the interest you accumulated as of 21st-year completion that you will get it without a doubt.

      Reply
  38. Dear Sir,

    Please answer of my question. I am waiting for your reply.

    Regards,
    Arindam Pahari

    Reply
    • Dear Arindam,
      You can deposit Rs.1,50,000 in PPF and SSA. Therefore, in total you can invest up to Rs.3 lakh per year in these two accounts. However, you can claim the tax benefits of up to Rs.1,50,000 under Sec.80C.

      Reply
      • Sir, I am deposit ssy 1000 p/m. But last 4 month I am not deposit. What is the amount after penalty?

        Reply
        • Dear Mukesh,
          There is no such mandatory rule to invest monthly. Once in a year, you can invest within the minimum and maximum amount of SSY.

          Reply
  39. Are there any other such schemes to invest in for younger ones for pursuing higher education.

    Reply
    • Dear Virendra,
      Never run behind schemes which claim to be meant for CHILD.

      Reply
  40. Dear Sir,

    I have a confusion about SSA and PPF. I have a PPF account which I opened on 2012. Now I have opened a SSA account for my daughter last year. Now my question that can I deposit Rs. 1,50,000 individually in each account to get deduction under 80C on both account separately or only allowed jointly Rs. 1,50,000 for both account as a whole.

    Regards,
    Arindam Pahari

    Reply
  41. My question is regarding transfer of Sukanya Samriddhi account from a post office to ICICI bank as it is easier to transfer money online to a bank. Will this reason be sufficient to transfer account?
    Do I need to go to Post office or bank for transfer?
    Can you elaborate the procedure for transfer?

    Reply
  42. Hi Basu,

    Goal 1 : Retirement
    I am planning to have this plan to my debt component for my retirement which is 25 years from now. I am using EPF+VPF as my debt component & Equity funds (1 Large , 1 Mid, 1 Small) for this. However I am unable to increase my VPF more than 12% of Basic +DA due to some restrictions. But I need to invest more in debt component to rebalance my debt: equity( 60:40).In that case,

    1. Is it wise to have Sukanya Samruddhi as my retirement debt component?

    Goal 2 : Daughter’s Education
    10 years from now. my idea is to invest in Aggressive Hybrid Fund and understanding is my portfolio will be re balanced with Debt & equity with the help of a fund manager time to time.

    Queries:
    1. Is it okay to invest only one Aggressive Hybrid Fund? or shall I have more than one for diversification?
    2. or would you suggest to have a separate equity and debt again for this like my goal1?

    Reply
    • Dear Hari,
      This product is meant for girl child but not for the retirement corpus. In case you need further debt, then use debt mutual funds.
      1) Invest and diversify in debt and equity based on time horizon of the goal.
      2) It is best to separate debt and equity for clarity.

      Reply
      • Thanks Basu for your response, I will go with separate debt & equity allocation for this as well. Can I use the same Equity funds for this goal as well or separate Large & Midcap fund will do the trick? obviously I need to use debt funds(ultra short term) for this goal as I am unable to increase my EPF+VPF which are tagged to my retirement goal.

        Reply
        • Dear Hari,
          If your existing funds are doing well, then why to go for new funds?

          Reply
          • okay got it. Thank you! I will increase the investment for this goal in the same funds then

            Reply
          • if any installment skip for 1 or 2 month than what it effect on account?

            Reply
            • Dear Sunil,
              No such effect. But yearly minimum investment is mandatory to make sure that the account is active.

              Reply
              • As intrest calculated at yearly basis, so I should submit the amount in ssy account at start of financial year or I should submit the amount at end of the year. I mean what is beneficial for me to invest early or late.

                Reply
                • Dear Sanni,
                  Beneficial is if you invest the whole amount at the initial of the FY.

                  Reply

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