Sukanya Samriddhi Yojana: The minimum investment limits are lowered in Sukanya Samriddhi Yojana

The minimum amount required for the opening of Sukanya Samriddhi Yojana (SSY), a government-supported program targeting girls and their financial needs, has been reduced.

According to PTI, the Sukanya Samriddhi account can now be opened with a minimum deposit of 250 rupees which was 1000 rupees before. In addition, the following years, the minimum of 250 rupees must be deposited each year against 1000 rupees before. A maximum of Rs 1.5 lakh can be deposited during the current exercise.

How to open an SSY account
A Sukanya Samriddhi account can be opened in any authorized post office or in branches of commercial banks. Generally, you can open a Sukanya Samriddhi Yojana in banks where you can open a public provident fund account (PPF).

The account opened at any time after the birth of a girl up to 10 years, will remain operational for 21 years from the date of its opening or until the marriage of the daughter after his 18 years.

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Operation of Account
An applicant may open and manage only one account in the name of the girl under the Sukanya Samriddhi Account Rules, 2016. To meet the requirement of her fees Graduate studies, partial withdrawal up to 50% of the balance is allowed after the age of 18 years. You can not open two accounts for a girl. Deposits in the account can be made up to the completion of 15 years, from the date of account opening. For a 9 year old child, deposits must continue until the child reaches the age of 24. Between the ages of 24 and 30 (when the account expires), the account continues to earn interest on the balance.

Interest rate earned
The government sets interest rates on a quarterly basis based on G-sec yields. The interest rate differential enjoyed by the SSY on the G-sec rate of comparable maturity is 75 basis points.

The interest rate since its launch is as follows:

As of April 1, 2014: 9.1%

From April 1st, 2015: 9.2%

From April 1, 2016 to June 30, 2016: 8.6%

From July 1, 2016 to September 30, 2016: 8.6%

From October 1, 2016 to December 31, 2016: 8.5%

From July 1st, 2017 to December 31st, 2017: 8.3%

From January 1, 2018 to March 31, 2018: 8.1%

From April 1, 2018 to June 30, 2018: 8.1%

From July 1, 2018 to September 30, 2018: 8.1%

Interest rate, to be notified by the Government, compounded annually will be credited to the account. The interest will be calculated for the calendar month on the lowest balance of an account on deposits made between the close of the 10th day and the end of the month.

To learn more about SSY, click
here and to know How to open a Sukanya Samriddhi account, click
right here.