Deposit Rs 250 per month at Sukanya Samriddhi Yojana, and earn big money, know full details

The Sukanya Samriddhi Yojana (SSY) is a government-backed small deposit scheme for a girl child and her financial needs. It was launched as part of the 'Beti Bachao Beti Padhao' campaign. The scheme comes with income-tax benefit under section 80C. The returns are tax-free as well.

A Sukanya Samriddhi Account can be opened any time after the birth of a girl child till she turns 10, where you will have to deposit a minimum of Rs 250.

In subsequent years, a minimum of Rs 250 and a maximum of Rs 1.5 lakh can be deposited during the ongoing financial year.

The account will remain operative for 21 years from the date of its opening or till the marriage of the girl after she turns 18. To meet the requirement of the child's higher education expenses, partial withdrawal of 50 per cent of the balance is allowed after she turns 18.

You can only open and operate one account in the name of the girl child. You can't open two accounts for one girl.

The birth certificate of the girl in whose name the account is opened should be submitted by the guardian at the time of the opening of the account in the post office or bank, along with other documents relating to identity and residence proof of the depositor.

You have to deposit a minimum of Rs 250 in a financial year, but the total money deposited in an account cannot exceed Rs 1.5 lakh.

Deposits in the account can be made till the completion of 15 years, from the date of the opening of the account.

For a 9-year-old, deposits have to continue till the child turns 24. Between ages 24 and 30 (when the account matures), the account keeps earning interest on the balance.

An irregular account where the minimum amount has not been deposited may be regularised on payment of a penalty of Rs 50 per year, along with the minimum specified subscription for the year (s) of default.

If the penalty is not paid, the entire deposit, including those made before the date of default, will receive interest at post office savings bank account rate. If excess interest has been paid, it will be reversed.

The government fixes interest rates on a quarterly basis based on government securities (G-sec) yields.

The SSY enjoys a exempt-exempt-exempt (EEE) status. The annual deposit (contributions) qualifies for Section 80C benefit and the maturity benefits are non-taxable.

The account is opened and operated by the natural or legal guardian of the girl child in her name till she turns 10.

When she turns 10, the girl child can operate the account herself, however, deposit in the account has to be made by the guardian or any other person or authority. In the event of death of the account holder, the account will be closed immediately on the production of a death certificate. The balance in the account will be paid, along with the interest till the month preceding the month of the premature closure of the account, to the guardian of the account holder. In any other case, a request for the premature closure of an SSY account can be put forward after the completion of five years of the account opening. This too will be allowed, as per the rules, on extreme compassionate grounds such as medical support in life-threatening diseases. Still, if the account has to be closed for another reason, it will be allowed, but the entire deposit will only get interest of a Post Office Savings Bank account.