Sukanya Samriddhi Account (SSA) is a saving scheme launched by the government of India on 22 January 2015. It is “Girl child prosperity” scheme which aims for the higher education and marriage of a girl child.

The scheme was launched under the campaign “Beti Bachao, Beti Padhao”.

Key features & how it works?

  • Parents or legal guardian of a girl child can open the account in the name of the girl child in a bank or post office. SSA can also be opened in the name of adopted girl child. Age of the girl child should be less than 10 years at the time of account opening. Documents required for opening of account includes birth certificate of the girl child and identity as well as address proof of the parents/guardian.
  • The girl child is called the “Account holder” and the parent/guardian is called the “Depositor”. Parent or legal guardian will operate the account till the girl child reaches 18 years of age. When she reaches the age of 18 years can operate the account herself.
  • Minimum deposit amount is 250, while maximum is 1.5 lakhs every year for the first 15 years. The account gets yearly compound interest as per rate announced by GOI (currently 7.60%).
  • You don’t have to deposit from 16 years to 21 years. After completion of 21 years (from the date of account opening), the account will mature and the girl child can withdraw the entire maturity amount.
  • If the girl child gets married before completion of 21 years from account opening, then entire accumulated balance can be withdrawn.
  • Partial withdrawal is also available for the higher education.
  • Loan facility and Nomination facility are not allowed in this scheme.

Income tax Benefit

With effect from 01-April-2020, it depends on whether you choose old tax system or new tax system. If you choose old system, deposit amount up to 1.5 lakhs in a financial year will be eligible for tax deduction under section 80C of Income tax Act. Interest earned, withdrawals and maturity amount too are completely tax free.

Pre-mature closure

Pre-mature closure is allowed under following conditions:

  • Death of girl child.
  • Girl child become NRI or citizen of another country.
  • Extreme difficulties in maintaining the account such as life-threatening diseases to the girl child or death of the parent or guardian. However, in this case, pre-mature closure will be allowed only after completion of 5 years from the date of account opening.

Frequently Asked Question (FAQ)

How many SSA accounts can be opened?

Only one in the name of girl child; however, maximum of 2 accounts can be opened in the name of two different girl children. You can open more than two accounts if more than two girl children born on the first birth. Also, more than two accounts if you are blessed with two or more girl children on the 2nd birth provided that you had only one girl child on 1st birth.

What is deposit limit and deposit period in the SSA scheme?

Minimum- Rs.250, Maximum- 1.5 lakhs. Deposit period is only the first 15 years from the date of account opening. Earlier the deposit period was 14 years when the scheme was launched but now is 15 years.

What is the penalty if account gets In-active?

When you don’t deposit the minimum amount of Rs.250 in a financial year, the account becomes In-active. The penalty to make the account active is of Rs.50 for each year of default along with minimum deposit of Rs.250 for each year of default.

When partial withdrawal is allowed?

Partial withdrawal is allowed when the girl child reaches 18 years of age or has completed 10th standard, whichever is earlier. It is allowed only for the purpose of education of the girl child.

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