Sukanya Samriddhi Yojana: The Central Government has offered a significant benefit to fathers of daughters. The SSY scheme is a special initiative designed to secure a daughter’s future. Since its launch, the scheme has proven to be extremely popular. A key feature of this scheme is that anyone with up to two daughters under the age of 10 can brighten their daughter’s future by investing as little as ₹250. Essentially, by investing just ₹10 a day, one can accumulate a substantial corpus.

You can open an SSY account at the country’s largest public sector bank, SBI, or at a post office by submitting your daughter’s birth certificate. Additionally, parents must submit their own passport-sized photographs, as well as proof of address and identity. Investing in this scheme offers excellent returns along with tax-saving benefits.

How to open an account with SBI

Opening an SSY account with SBI is a simple process. You need to visit a nearby branch, where a bank official can assist you. All you have to do is submit the required documents and the minimum deposit amount (₹250) along with the SSY scheme application form. Once the documents are approved, your account will be successfully opened.

Even if you do not currently hold an SBI account, you can open this account if you are the legal parent of the daughter and meet the eligibility criteria. The person opening the SBI SSY account must be the legal parent or guardian. This individual acts as the depositor and manages the account until the daughter reaches the age of 10.

You can view your balance online.

You can check the amount deposited in the SSY account and the returns earned so far online. To do so, you need to visit your bank or post office to obtain the password for online banking services. If you are already availing of this facility, you can easily check the status of your savings.

Open an account with ₹250.

You can open an SSY account through any post office or bank across the country. A key feature is that you can open the account with a minimum amount of ₹250. You will need to visit the bank or post office and submit the relevant certificate. Additionally, parents must submit their photographs, proof of address, and identity proofs. You may deposit a larger amount if you wish; the maximum investment limit under this scheme is ₹1.5 lakh per year. Investments must be made for a period of 21 years.

Open one account per daughter.

Only one account can be opened in the name of a daughter. Parents can open accounts for a maximum of two daughters. However, if there are twins or triplets, a third daughter can also avail the benefits of this scheme.

Investment duration

The account can be opened before the daughter turns 10 years old. Deposits must be made for the initial 14 years. The scheme has a maturity period of 21 years, meaning the funds can be withdrawn after this term. However, funds can be withdrawn if the daughter gets married after turning 18. Additionally, up to 50% of the funds can be withdrawn for the daughter’s higher education after she turns 18.

Required documents

To open an account under the SSY scheme, the applicant must submit the daughter’s birth certificate along with the application form at the bank or post office. Identity proofs and address proofs for both the daughter and the parents are also required.

Tax benefits

Investments in the SSY scheme offer tax benefits under Section 80C of the Income Tax Act. The amount received upon maturity is tax-free. This scheme offers higher interest rates compared to other schemes. It allows you to save for your daughter’s higher education and marriage.

Terms and Conditions of the SSY Scheme

The SSY account matures 21 years from the date of opening, subject to certain conditions. If the daughter gets married before the completion of the 21-year term, the account must be closed; it cannot be continued beyond that point.
Previously, accounts could be opened for only two daughters under this scheme, but now three accounts are permitted. This requires an affidavit along with the birth certificate.

A third account can now be opened if the second delivery results in twin daughters. If the mandatory annual minimum deposit of ₹250 is not made, the account is classified as a ‘default account’; however, it continues to earn interest on the existing balance under the scheme. The daughter is not permitted to operate the SSY account upon turning 18. The government provides a 100% guarantee on this scheme. Even after maturity, the deposited amount continues to earn interest until the account is closed.