How to Deposit Money in Sukanya Samriddhi Account Online?
The Government of India launched the Sukanya Samriddhi Yojana (SSY) in 2015 under the Beti Bachao, Beti Padhao scheme to help families build a corpus to secure the future of their girl child.
However, the plan allows the opening of only one account per girl child by the parents or legal guardians of the child. You can register the account anytime between the child’s birth and before she turns 10.
The tenure of a Sukanya Samriddhi account is 21 years, with the government deciding the interest rate quarterly. The interest is calculated on the lowest balance between the 5th of every month and the month’s end. The current interest rate is 8%, compounded annually.
While you can open the Sukanya Samriddhi account only by physically visiting a bank or post office branch, you can avail of other facilities online; for example, you can deposit money in your SSY account online.
How to Deposit Money in Sukanya Samriddhi Account?
You can deposit money in your Sukanya Samriddhi Account online with an India Post Payments Bank (IPPB) account. To deposit money in your SSY account through your IPPB account, you need to follow the steps mentioned below:
Step 1: Transfer funds from your regular savings account to your India Post Payment Bank (IPPB) savings account (in case you need more funds in your IPPB account already).
Step 2: Browse the ‘Department of Post Products’ page and choose the ‘Sukanya Samriddhi Account’ option.
Step 3: Mention your Sukanya Samriddhi plan details, including the account information and customer ID provided by the Department of Post (DOP).
Step 4: Select the investment period and instalment amount.
Step 5: India Post Payments Bank will notify you about the successful payment transfer on your registered cellphone number.
Furthermore, before proceeding with the steps of depositing money in the Sukanya Samriddhi Account online, ensure that:
- Your SSY account is active and under proper maintenance.
- You enter your correct SSY account number and DOP customer ID.
The transfer of funds from the savings account to the SSY account can be automated for all future instalments through standing instructions to IPPB.
Another digital product launched by the Department of Posts, DakPay, facilitates money transfer by scanning QR codes, similar to apps like Paytm or Google Pay.
How to Open an SSY Account?
Opening an SSY account is a simple procedure. You can open a Sukanya Samriddhi Yojana Account with a registered bank or post office by following the steps below:
- Go to the nearest bank or post office.
- Fill up the Sukanya Samriddhi Yojana registration form with your daughter’s information.
- Submit a copy of her Aadhaar card, birth certificate, other required documentation, and the initial deposit amount.
- Your account will get activated after authentication, and you will receive the passbook.
Sukanya Samriddhi Account is easy to open and maintain, and you must deposit a minimum of Rs. 250 annually for 15 years to keep the account active. It offers tax deductions under section 80C on the funds. You can partially withdraw funds once your daughter turns 18. You can invest in this lucrative scheme to build a substantial corpus for your daughter.
Which bank is best for an SSY account?
The Indian Government has given many banks the authority to open Sukanya Samriddhi Yojana accounts (SSY accounts). Syndicate Bank, Indian Bank, Canara Bank, State Bank of India, Punjab National Bank, IDBI Bank, ICICI Bank, Axis Bank, etc., are some of the empanelled banks. You can go with any of these banks to get an SSY account opened and use the simple process of transferring money from IPPB to the Sukanya Samriddhi Account.
Is there a tax exemption on SSY?
The Sukanya Samriddhi account falls under the exempt-exempt-exempt category as per the Income Tax Act. This means, you not only get a tax deduction of up to Rs. 1.5 lakhs under Section 80C, the interest earned and the maturity amount are also tax-free.
Can I open the account in the name of my NRI child?
SSA is meant to cover only those children whose parents are resident Indians at the time of account opening and stay as such till maturity or the closure. If you change your residential status, your account will be considered closed. In addition, you will be given no interest as soon as you turn NRI.
Why is SSY a good investment option for a girl child?
Sukanya Samriddhi Yojana offers high and stable interest rates set by the government. It is an excellent investment choice when saving a corpus for your daughter is your priority. You can start with as low as Rs. 250 and invest a maximum of Rs. 1.5 lakhs.
How many years should I keep depositing in the Sukanya Samriddhi Yojana Scheme?
To keep the account active, you need to continue making deposits for a period of 15 years. From there onwards till the time the account turns 21, you don’t have to make any contributions.
Are partial withdrawals allowed under the SSY scheme?
Partial withdrawals are allowed only when the girl child turns 18 or on certain humanitarian grounds.
Can both parents open an SSY account each for their daughter?
No, only one parent or legal guardian of the child can open an account in the child’s name before she turns 10. Hence, dual accounts are not allowed.