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.
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 However, an amount deposited in excess of an annual ceiling of Rs.1,50,000 may be withdrawn anytime by the depositor.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):-
- Sukanya Samriddhi Account-An investment scheme for your girl child
- Difference of Sukanya Samriddhi Account Vs PPF (With Tax Benefits)
- Sukanya Samriddhi Account -When to invest to earn more returns?
- Transfer Sukanya Samriddhi Account from Post Office to Bank
How to check Aadhaar is active or deactivated online?
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JayaKumar
my wife opened a SSA account of my daughter & she signature
Guardian column.
Therefore can i submit tax rebate in SSA accounts.
Basavaraj Tonagatti
Dear Jayakumar,
Yes if you are investing in that.
Subhra Majumder
Hello Sir,
Can you please let me know which date’s balance is considered for calculating monthly interest in SSY account. Some sites say it’s the 5th of the month while others say its the 10th of the month.
Basavaraj Tonagatti
Dear Subhra,
It is 10th. 5th is for PPF.
Ashok
In case of parent or gurdian death what hapen to ssy scheme
Basavaraj Tonagatti
Dear Ashok,
I think the legal heir has to take care of it.
G K Rao
Hi,
I already have one ppf account in which I am making 1.5 lakh investment annually for my retirement. I came to know that, if I open a ppf account in the name of my daughter then the cap is 1.5 lakh together for my ppf and her ppf account combined. So I cannot invest 1.5 lakh each in my ppf and my daughter’s ppf.
Is it same with ssy? That is if I open ssy account for my daughter then, can I continue to invest 1.5 lakh in my ppf and 1.5 lakh in her ssy annually or is the cap is 1.5 lakh for both my ppf and her ssy accounts combined as in ppf? Please answer. Thanks in advance
Basavaraj Tonagatti
Dear Rao,
Both PPF and SSY are different products. Hence, the rule of having a PPF account in your name and one as a guardian is not applicable here. Hence, go ahead and open SSY and you can deposit Rs.3 lakh a year including both accounts.
Vasanth
Can we pay say premium multiple times in a month?
Basavaraj Tonagatti
Dear Vasanth,
Yes.
Pankaj Thakare
Hi Sir,
What happens if Bank fails ? What happened to Sukanya account ? How can we claim account ?
Basavaraj Tonagatti
Dear Pankaj,
It is not the product by Bank but of the Government. Banks act like facilitators. Hence, you no need to worry about safety.
Regina Fernandes
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.
Basavaraj Tonagatti
Dear Regina,
It depends on the bank where you have SSY. Hence, better you interact with customer support team of the bank.
Sunell
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.
Vishal Sinha
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
Basavaraj Tonagatti
Dear Vishal,
Yes, obviously.
Srikanth
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
Basavaraj Tonagatti
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?
Tavern kumar
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
Basavaraj Tonagatti
Dear Tavern,
Yes, you can pay the penalty for last year and invest the minimum amount and activate the account.
Raghu
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.
Basavaraj Tonagatti
Dear Raghu,
Due to lockdown, there may be a certain delay. Wait for a few days.
Raghu
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.
DAVID MAZUMDER
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 ?
Basavaraj Tonagatti
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.
Swarup
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
Basavaraj Tonagatti
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.
Swarup
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
Don
I have started account on 29 th December .When 1 year deposit period end ?.on 31 St March 2020 or 29 Dec 2020?
Basavaraj Tonagatti
Dear Don,
One year period ends on 31st March 2020.
Dhanish
Who is the legal authority of the corpus, Parent or the child? or Who will be legally withdraw the corpus?
Basavaraj Tonagatti
Dear Dhanish,
Parents.
Ravindra
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.
Basavaraj Tonagatti
Dear Ravindra,
Yes, you can. If the death of guardian happens, then another guardian can continue or can be closed also.
Ganesh
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
Basavaraj Tonagatti
Dear Ganesh,
There is no clarity on NRI front for PPF account itself as of now. Many are interpreting it as per their wish.
Vani
Hello Sir,
Does the banks generally give the option to make a FD or PPF in name of the girl child with lockin period of same as SSA of they become citizens of another country or move abroad?
Thank you!
Basavaraj Tonagatti
Dear Vani,
It is the way to create the business from the SSY for the banks. But it is not mandatory to do.
fayona
For my Sukanya account ,Pnb bank entered one letter of my PAN Card wrongly.How it is possible to edit
Basavaraj Tonagatti
Dear Fayona,
It is their mistake, let them correct it.
Nitesh karoriya
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
Basavaraj Tonagatti
Dear Nitesh,
Sadly you can’t
Kalai
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.
Basavaraj Tonagatti
Dear Kalai,
It is Rs.1.5 lakh in each account.
Sachin
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.
Basavaraj Tonagatti
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.
Jj
If account holder and guardian both are died then the amount given to legalheir or not
Basavaraj Tonagatti
Dear Ji,
Yes, for legal heirs.
Anonymous
After 15 years of deposite, Who will be legal owner of that amount?
Depositor (father/mother) or daughter (jiske naam par account h)???
Basavaraj Tonagatti
Dear Anonymous,
For parents, SSY not acts like GUARDIAN. Hence, the ownership will remain with parents (irrespective of kid’s age).
Prem Kumar Sharma
Dear Sir,
I have paid 13 monthly instalment to ssy and now I wish to discontinue.
Please advice how I withdraw money earliest?
Basavaraj Tonagatti
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.
Sharad Narayan Samal
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?
Basavaraj Tonagatti
Dear Sharad,
It is on yearly basis.
Naveen Kumar H S
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?
Basavaraj Tonagatti
Dear Naveen,
It is always a Financial Year.
Naveen Kumar H S
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?
Basavaraj Tonagatti
Dear Naveen,
Yes.
saurabh jain
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?
Basavaraj Tonagatti
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.
Manju
I want close my daughter ssy account.will I get back my deposited amount? And what is the procedure?
Basavaraj Tonagatti
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.
Vijay
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.
Basavaraj Tonagatti
Dear Vijay,
1) You can do so.
2) Yes, it is permissible.
Vikas Parihar
How much we can deposit in a single day
Basavaraj Tonagatti
Dear Vikas,
The limit if for an FY but not a single day.
Pranjali
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.
Basavaraj Tonagatti
Dear Pranjali,
Great to know 🙂
Ben
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.
Basavaraj Tonagatti
Dear Ben,
Sadly NO. Hence, better to approach the bank and try to close the third account.
Ben
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.
Basavaraj Tonagatti
Dear Ben,
They have to close. If they say NO, then let them give in writing on this aspect.
Satish
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.
Basavaraj Tonagatti
Dear Satish,
Let them retain one account of their choice and apply for closure of another.
Manju
Sir ssy 1 year paied amount and stop the account money will return or not
Basavaraj Tonagatti
Dear Manju,
Please refer the above post once again.
AJAY KUMAR DUBEY
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.
Basavaraj Tonagatti
Dear Ajay,
As per me, YES.
Gopalkrishnan
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
Basavaraj Tonagatti
Dear Gopalakrishnan,
Best option depends on many criteria. Hence, it is hard for me to say BLINDLY.
Surya
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.
Basavaraj Tonagatti
Dear Surya,
If your goal is matching the maturity period, then use such products as debt part of your portfolio.
Sandy
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.
Basavaraj Tonagatti
Dear Sandy,
Treat SSY as debt part of your investment. Returns depend on how the Government declares on a quarterly basis.
Sandip
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)
Basavaraj Tonagatti
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.
Sandip
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 ?
Basavaraj Tonagatti
Dear Sandip,
Both are horrible.
Ram
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.
Basavaraj Tonagatti
Dear Ram,
If the source of investment is from your income, then yes you can submit the tax rebate.
guest
Max limit is 3 lakh or 1.5 lakh for two daughter. I know max 1.5 lakh can be deposited in one account
Basavaraj Tonagatti
Dear Guest,
If there are two kids, then the maximum limit is Rs.3 lakh.
Ashit Vora
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?
Basavaraj Tonagatti
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.
Sumit Jain
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??
Basavaraj Tonagatti
Dear Sumit,
As Government has not specified anything in this regard, I assume you can deposit Rs.3,00,000 the maximum.
Gurukanth
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?
Basavaraj Tonagatti
Dear Gurukanth,
Whatever the interest you accumulated as of 21st-year completion that you will get it without a doubt.
Arindam Pahari
Dear Sir,
Please answer of my question. I am waiting for your reply.
Regards,
Arindam Pahari
Basavaraj Tonagatti
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.
Mukesh kumar
Sir, I am deposit ssy 1000 p/m. But last 4 month I am not deposit. What is the amount after penalty?
Basavaraj Tonagatti
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.
Virendra
Are there any other such schemes to invest in for younger ones for pursuing higher education.
Basavaraj Tonagatti
Dear Virendra,
Never run behind schemes which claim to be meant for CHILD.
Arindam Pahari
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
Varun
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?
Basavaraj Tonagatti
Dear Varun,
Refer my post “Transfer Sukanya Samriddhi Account from Post Office to Bank“.
Hari
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?
Basavaraj Tonagatti
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.
Hari
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.
Basavaraj Tonagatti
Dear Hari,
If your existing funds are doing well, then why to go for new funds?
Hari
okay got it. Thank you! I will increase the investment for this goal in the same funds then
Sunil Kumar
if any installment skip for 1 or 2 month than what it effect on account?
Basavaraj Tonagatti
Dear Sunil,
No such effect. But yearly minimum investment is mandatory to make sure that the account is active.
Sanni Kumar Sharma
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.
Basavaraj Tonagatti
Dear Sanni,
Beneficial is if you invest the whole amount at the initial of the FY.