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.
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 However, an amount deposited in excess of an annual ceiling of Rs.1,50,000 may be withdrawn anytime by the depositor.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.
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.
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.
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.
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):-
EPF Scheme 2026 explained fully: EPF withdrawal, EPS pension, and EDLI insurance changes with examples,…
Chasing financial freedom? Do health, time, relationships and contentment matter just as much? Sadly, we…
Your "safe" SIPs, SGBs, PPF, or Index Funds are secretly sabotaging your wealth. Peltzman Effect…
Thinking your retirement plan is foolproof? Why LUCK - not asset or fund selection or…
Nifty 50 Index Funds Vs Active Large Cap Funds — Can we really compare them…
Should you pick Nifty 500 Multicap 50:25:25, Nifty 500, or Nifty LargeMidcap 250 Index Fund?…
View Comments
i missed the premium for sukanya samridhi yojana last year i.e nil deposit, now in the current year is it possible to deposit premium for both CY and LY ?
Dear HEM,
You are not allowed to invest the maximum amount for last year. You have to invet minimal amount and pay the penalty of one year and then renew it. Once it is active, then for this financial year, you can contribute the maximum amount.
Nobody is giving authentic information about interest applicability in Sukanya Samriddhi Yojna.Whether it is variable Qly or fixed?
Dear Santosh,
It is VARIABLE once in a quarter.
i want to open ssy for my daugter at age of 2nd.so i need to deposit amount up to her 16 years age is it correct or not i have dought.
Dear Priyanka,
Yes.
What if we fail to deposit Rs.1, 50,000 in the financial year can the amount be deposited in the next year kindly advise
Dear Lokesh,
Once you failt to deposit the maximum amount, that can't be compensated in the next year. However, no contribution is made in the past year and account turned inactive, that can be made active with MINIMAL contribution but not with MAXIMUM contribution.
Hello sir we have ssy account and when i checked the statement i am not getting early interest of 7% i got only aroung 2% will the interest get calculated yesarly or at the time of payout
Dear Ghouse,
It is calculated on yearly. How you arrived at the conclusion of 2%?
What happens if I invested money on March 31 ?
Dear Sowjanya,
Let us say you invested on 31st March 2023, then it will be considered as a contribution for FY 2022-23. Interest will start to earn from 1st April 2023.
Dear sir
I opened SSY account for my daughter in 2015. She is an OCI card holder, however no one said anything to us at that time and we have been contributing to the account ever since. Now we got to know that OCI holders cannot have an account. What can I do now? If I close the account now, will I get the interest that was acted so far? Please advise.
Thank you
Alpana
Dear Alpana,
Better to close the account immediately and regarding the interest rate (as per the rules), you may not get the interest.
Hello Mr Basu
We opened our daughter SSY account in 2013-14 .Later we shifted out of India. We are still paying per month basis to her account. WILL IT BE APPLICABLE SAME PROCEDURE FOR OUR CASE?
What are your suggestions and guidelines for this ?
Thank you
Smita
Dear Smita,
If your child's residential status is NRI, then you are no longer allowed to continue the SSY account.
Dear Sir ,
What happens if guardian get death?
Dear LB,
In the absence of a guardian, the immediate next guardian will have rights.
Hi, i want to open ssy account for my baby. I am having one query that if in 1st year i want to invest 70k and in 2nd year i want to invest 60k will they accept like this? Please clarify
Dear Shami,
Yes. The only condition is that it should be within the minimum and maximum limits.