This scheme was launched by Indian Prime Minister Mr Narendra Modi on 22 January 2015 under the campaign of “beti bachao beti padhao (BBBP)”. The main aim of this campaign was to protect girl child and improving the declining child sex ratio.
The main aim of this scheme is to provide financial freedom to the girl parents about their future study and marriage.
Who is eligible to open the SSY account?
Parents or legal guardian of a girl child who is resident of India can open the account. The account can be opened at any time from the date of birth to the age of 10 years.
What are the documents required to open the SSY account?
Birth certificate of the girl child.
Aadhar card (if available)
Parents or guardian address proof and identity proof.
Medical certificate of multiple girl children birth in single delivery along with an affidavit.
What is the tenure of the SSY account?
The tenure of the SSY account is 21 years.
What is the interest rate in SSY account?
The interest earned is 7.6%. however, interest is not paid after the completion of 21 year. If the girl becomes the non-resident Indian, no interest will be given from the date she becomes NRI.
How many numbers of accounts can be opened?
Only one account per one girl child is allowed. In one family maximum of two accounts are allowed. However, accounts of more than two girl accounts are allowed if two girls born on single birth. Also, in the second birth again twin girls born. According to the new guidelines, if more than two accounts are to be opened, an individual has to submit an affidavit along with the medical certificate.
Can we open SSY account for the adopted child?
Yes, adopted girl child is also eligible to open the account under the condition that the family is having maximum of two accounts including adopted girl child.
At what age the account is operated by the girl itself?
After the girl attains the age of 18 year, she can operate her account by herself. Up to the age of 18 years, account will be operated by the parents or legal guardian.
Where SSY account can be opened?
SSY account can be opened at any nearby authorized bank branch or Post Office.
How to deposit the amount into the account?
The amount can be deposited through cash, cheque, demand draft or online transfer as well.
What is the minimum and maximum deposit amount?
Minimum investment = Rs 250
Maximum investment = Rs 1.5 lakhs
What happen if minimum amount is not maintained?
If the minimum balance is not maintained then the account will be considered as a default account and there will be a penalty of Rs 50 per year for the year in which minimum deposit is not made. However as per new guidelines the default account is earning the same interest as per SSY. In case of sudden demise of the guardian, the default account will be eligible for same interest.
What if more than maximum limit is deposited in to the account?
If the account holder deposit more than 1.5 lakh amount than the surplus amount will not be eligible for the interest and tax benefits.
What are the tax benefits of the SSA?
The investment made in SSA is eligible for the tax deduction as per section 80C. Interest on maturity is also tax free.
When the SSA can be closed?
Account is matured after the completion of 21 years. The amount in SSA with all interest is given to the child after submitting valid identity proof.
What are the conditions of the premature closure of the account?
If the girl attains the age of 18 year then for the purpose of marriage money can be withdrawn. An application has to be submitted between 1-month prior of marriage and 3 months after of marriage with valid age proof.
In the case of sudden death of girl child account can be closed by submitting death certificate and the balance amount will be transferred to the guardian account.
If the girl becomes non-resident or non-citizen then it should be informed to the account holding branch with valid documents within one month of status change by the girl or by the guardian to close your SSA account.
After completion of 5 years if the bank finds very difficult to continue SSA under certain conditions like sudden demise of guardians, serious medical problems for the girl child etc. then the girl or guardian can ask for premature closure.
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