The Sukanya Samriddhi Yojana is a new scheme launched in the year 2014 by Prime Minister Narendra Modi. The Sukanya Samriddhi Account scheme was launched with an initial interest rate of 9.10% p.a. compounded annually. This has been increased to 9.20% p.a. for the current fiscal 2015-16.Sukanya Samriddhi Yojana interest rate is revised on a yearly basis and hence for FY 2016-17 it has been revised 8.6%.
Sukanya Samriddhi Interest Rate vs PPF, FD and RD
The comparison of Sukanya Samriddhi interest rate with other popular savings instruments such as PPF, RD and FD is shown below:
| Scheme | Sukanya Samriddhi Yojana | Public Provident Fund (PPF) | Fixed Deposit | Recurring Deposit |
| Interest rate (Fy: 2016-17) | 8.60% p.a. | 8.10% p.a. | 6-9% p.a. | 8.40% |
Salient Features of Sukanya Samriddhi Account
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- Flexible deposit amounts: The account can be opened with a minimum deposit of Rs.1,000 and in multiples of Rs.100 thereafter. A maximum of Rs.1.5 lakhs can be deposited per account every year.
- Tax exemption: Depositors stand to receive exemptions up to Rs.1.5 lakhs p.a. as per Section 80C of the Income Tax Act, 1961.
- Partial withdrawal: Partial withdrawal of up to 50% of account balance can be claimed once the account holder turns 18, allowing her to pursue higher education on her own.
- Documentation: Minimal documentation requirement which includes birth certificate of girl child and identity and address proof of depositor.
- Transferability: The account can be transferred to any of the bank branches across India that accept Sukanya Samriddhi Account openings. The RBI has listed 28 banks apart from post office branches which can operate Sukanya Samriddhi Accounts.
Sukanya Samriddhi Account Interest Rate 2017-18
The Government has ensured that the rate of interest under the Sukanya Samriddhi scheme is lucrative enough for parents to be encouraged to invest more for the future security of the girl child. The interest rate pertaining to the current financial year 2017-18 is 8.4%, and it is compounded on an annual basis. This is also the best interest rate among other savings schemes, including PPF.
Effectively, the parent gets a competitive interest rate on the Sukanya Samriddhi account, in addition to a tax exemption under Section 80C of the Income Tax Act, 1961. There is no other deposit scheme in the country that offers such a high rate of interest, tax exemption, and security for the girl child.
This rate of interest is not permanent, and would vary every fiscal on the basis of economic factors. However, the scheme has garnered much popularity, and hence, it is expected to continue to attract higher interest rates in comparison to other savings schemes.
The SSA interest rate change chart is as shown below:
| S.No | Financial Year | Assessment Year | Interest Rate | Minimum Amount Limit (Rs.) | Maximum Amount Limit (Rs.) |
|---|---|---|---|---|---|
| 1 | Q4 of 2016-17 | Q4 of 2017-18 | 8.4 | Rs.1000 | Rs.1.5 lakh |
| 2 | Q3 of 2016-17 | Q3 of 2017-18 | 8.5 | Rs.1000 | Rs.1.5 lakh |
| 3 | Q2 of 2016-17 | Q2 of 2017-18 | 8.6 | Rs.1000 | Rs.1.5 lakh |
| 4 | Q1 of 2016-17 | Q1 of 2017-18 | 8.6 | Rs.1000 | Rs.1.5 lakh |
| 5 | 2015-16 | 2016-17 | 9.2 | Rs.1000 | Rs.1.5 lakh |
| 6 | 2014-15 | 2015-16 | 9.1 | Rs.1000 | Rs.1.5 lakh |
Benefits with Higher Interest Rate in Sukanya Samriddhi Account
Apart from the higher interest rates, some of the other benefits of the Sukanya Samriddhi scheme are as follows:
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- Tax benefits under section 80C.
- The account can be transferred anywhere in India.
- The minimum amount that needs to be deposited on an annual basis is very low, i.e., Rs.1,000 per year.
- The girl child will be able to operate the account after the attainment of 10 years.
- The girl child will receive the proceeds when the account matures.
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The SSA is unique in the fact that it is a scheme that offers financial security and growth, in addition to creating an awareness on the well-being of the girl child.
Sukanya Samriddhi 9.2% Interest: Maturity Amt. Calculation
The application process for the Sukanya Samriddhi scheme is very simple and requires the parents of the child to submit certain documents, such as:
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- Account Opening Form
- Birth Certificate of the child
- Address and proof of identity of the legal guardian
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The amount that the child receives on maturity of the policy is totally tax-free. There will also be no tax on the investments made towards the scheme.
If you are the parent of a girl child who has decided to invest in this scheme, the maturity amount that you can avail when you start contributing from the financial year 2015-16 is as follows. The interest rate considered for this calculation is 9.2%.
| Investment amount each year for 14 years, starting from 2015 till 2028 (Rs.) | Maturity amount received after 21 years (Rs.) |
|---|---|
| 10,000 | 5,33,764 |
| 20,000 | 10,67,528 |
| 30,000 | 16,01,293 |
| 40,000 | 21,35,057 |
| 50,000 | 26,68,821 |
| 60,000 | 32,02,585 |
| 70,000 | 37,36,349 |
| 80,000 | 42,70,114 |
| 90,000 | 48,03,878 |
| 100,000 | 53,37,642 |
| 110,000 | 58,71,406 |
| 120,000 | 64,05,170 |
| 130,000 | 69,38,934 |
| 140,000 | 74,72,699 |
| 150,000 | 80,06,463 |
