In this post we'll see what are the deposit rules for Sukanya Samriddhi Accout, for how long do you need to deposit in the SSY account and what is the best time to make a deposit in SSY.
Deposit while opening SSY account
The account can be opened with an initial deposit of minimum of Rs.1,000. Thereafter any amount in the multiples of Rs.100 may be deposited with a requirement of minimum deposit of Rs.1,000 and maximum deposit of Rs. 1,50,000 (Current 80C limit) in a financial year.
- Refer: How and Where to Open Sukanya Samriddhi Yojana (SSY) Account to know more about opening SSY account.
Limit on number of deposits
There is no limit on number of deposits either in a month or in a Financial year subject to the maximum deposit of 1,50,000 and minimum deposit of Rs. 1,000 in a financial year.
Mode of deposit
The deposit mode may be -
- Cash
- Cheque or demand draft drawn in favour of the Postmaster of the concerned post office or the Manager of the concerned bank where the account is opened. That cheque or DD needs to be endorsed on the back by depositor's signature and indicating the name of the account holder and the account number.
- Through e-transfer in the concerned post office or bank.
Deposit for first 14 years only
Deposit in the Sukanya Samriddhi Account needs to be done for first 14 years only from the date of opening of the account, i.e. deposit of a minimum of Rs. 1,000 and a maximum of Rs. 1,50,000 has to be done for 14 years only, since the maturity of the account is after 21 years (apart from the exception of the marriage of the account holder) which means for the last 7 years of the SSY account no deposit has to be made. Account will keep earning the prevailing interest rate till it matures.
- Refer Sukanya Samriddhi Yojana (SSY) Account Duration to get more information about the duration of SSY account.
Best time to deposit in SSY
The interest on balance in the SSY account is compounded annually and is credited at the end of the year. But the point to remember is that the interest calculation is done every month for that interest is calculated on lowest balance in account between 10th and last day of the month.
This means, if you want your deposit to get interest for the month it was deposited, you should make that deposit in SSY account by the 10th of that month.
Discontinuation of SSY Account
If minimum Rs. 1,000 is not deposited in a financial year, account will become discontinued and can be revived on a payment of a penalty of Rs. 50 per year along with minimum deposit amount (Rs. 1,000) for the year(s) of default.
Points to note -
- Minimum deposit limit in a financial year is Rs. 1,000 and maximum limit is Rs. 1,50,000.
- The maximum limit is linked to the exemption provided under Sec 80C, if exemption limit is increased under 80C maximum limit allowed under Sukanya Samriddhi Account may increase too.
- In case of 2 accounts maximum contribution to both accounts combined should not exceed the maximum limit of Rs. 1,50,000.
- Thought the SSY account matures after 21 years, but deposit has to be done for the first 14 years only.
- Failure to deposit the minimum specified amount of Rs. 1,000 in a financial year will lead to the discontinuation of account.
That's all for this topic Deposit Rules For Sukanya Samriddhi Yojana (SSY) Account. If you have any doubt or any suggestions to make please drop a comment. Thanks!
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what is interest calculation period for SSY like in PPF,it is 5th to end of month?
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