Interest Rates in Sukanya Samriddhi Account (SSA) for FY 2017-18 AY 2018-19 is 8.1%, which was updated recently on 28th Dec 2017 for quarter January-March 2018. The previous rate of interest was 8.3% though. The scheme was initially launched with 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 Account or SSY is one of the most popular Govt. scheme launched for the benefit of girl child in our society. Mr. Narendra Modi has launched many social development schemes and among which I feel SSY is the best Govt scheme launched ever.

In this article, I will share some key facts about this scheme and how to get the maximum benefit from SSY scheme. I have started a dedicated website to share all information about Sukanya Samriddhi Yojana and also a Facebook page which has become very popular with a subscriber count more than 2000+.

Latest Sukanya Samriddhi Account Interest Rate 2018 & Comparisons

You might have noticed that the interest rates of all post office small savings schemes are revised in every quarter and the trend is not good as it is decreasing so far in last couple of years. Here is the interest rate of SSA as per latest changes.

• The scheme launched with initial interest rate of 9.10% p.a. compounded annually
• Later it’s increased to 9.20% p.a. for the fiscal year 2015-16.
• Last quarter [Oct-Dec 2017] interest rate was 8.3%
• Current Quarter [Jan-Mar 2018] interest rate is 8.1%, a reduction of further 200 basis point.

SSA Interest Rate vs PPF, FD and RD

Key Facts to Know About Sukanya Samriddhi Account

The purpose of this scheme is to provide financial security to the girl child of our society for their higher studies or marriage. This scheme is almost similar to PPF account only and one of the best long term investment option in India in case you are looking for low risk investment options. Here is the few key highlights of Sukanya Samriddhi Account or SSA.

• This scheme is only for the girl child. Only a child with Indian citizenship can open SSA account. In case you are NRI or OCI, then you can’t open Sukanya account.
• The maximum age of opening SSY account is 10 years only. In the initial year it was up to 11 years, but now the rule has changed and you can open for your kid with max age 10 years only.
• This account can be opened by the parents or legal guardian like uncle, grand-parents.
• The minimum deposit to this account is Rs 1000 and maximum is Rs 1.5 lakh. That doesn’t mean that every month you have to pay some fixed amount. Whatever the amount, just deposit as per the limit either one-time or monthly installments.
• You can deposit money to your SSA account till the age of 15 year of the girl child. That means if your kid is 10 years old, then you will get only 5 years to deposit money.
• The rate of interest for Sukanya Samriddhi Account is 8.1% for the current financial year 2016-17. But it was launched with a highest interest rate of 9.2% which is reduced last year.
• The interest will be paid every month on the accumulated money by 10th of every month.
• In case you don’t deposit any amount in a financial year, then you will not get interest for the year and a nominal 4% interest rate will be applied. There is a penalty of Rs 50 as well in case you don’t continue deposit in this SSY account.
• One can deposit money by cash only. But in case you have opened the account in bank and they have net banking facility to transfer money online then you can also deposit money to your SSY account online.
• The maturity of the account is till 21 years from the opening date or when the marriage of the girl child happen whichever is earlier.
• Premature closure of the account is allowed in case of sudden death of the girl child.
• You can withdraw 50% of the amount at the age of 18 years of the girl child for her higher education purpose only.
• One can get income tax benefit for the deposit paid in a financial year under section 80C as per income tax rules 1961 in India.

How To Open Sukanya Samriddhi Account?

You can open SSA in post office or in Bank authorized by Govt of India. That means you can’t open SSY in any bank. Here is the list of bank where one can open this account.

Just visit your nearest post office or bank with the below documents and fill up the application form. You will get a passbook after proper document verification and your SSA account will be opened quickly.

Documents Required To Open SSY Account

• Birth Certificate of the Girl Child: In many cases birth certificate may not have the name of the girl child issued by hospital. In that case it is better to change the certificate first with the name and then apply for this account.
• Identity Proof or PAN Card & Aadhaar Card of the Parent/Legal Guardian: If you don’t have Aadhaar card then provide voter id, passport to proof your identity.
• Residence Proof or Aadhaar Card of the Parent/Legal Guardian: For resident proof voter id, electricity bill, aadhaar card, passport etc can be provided. If you have a post office savings account with that branch, then you may provide that account passbook copy also as resident proof. But ask about this before submitting.
• 3 Photographs of each of the Depositor/Parent/Legal Guardian & the girl Child

Should I Open Sukanya Samriddhi Account?

If you have a girl child and you really want to save money for your girl child then SSA is a good option. This will give you a decent return like PPF account and also help you to save income tax. But in long term the return from PPF or SSA schemes may not be that much attractive if you compare with mutual funds. One more thing I want to add here that, you should buy a term insurance plan to make sure that your future financial goals are secured.

So, if you can take some risk in investment then you should not depend up on these investment options fully. Try to diversify your portfolio by investing in mutual funds as well. Share your thoughts or any question to get clarified about this new Govt scheme, Sukanya Samriddhi account.

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