HDFC Sukanya Samriddhi Yojana Interest Rates 2024

As a legal guardian or parent of a girl child, you can open an HDFC Sukanya Samriddhi Yojana (SSY) account to secure the financial interest of a minor. The SSY scheme is a central government-backed long-term savings scheme that you can open exclusively for your girl child. Let’s know about the scheme in detail.

What Is HDFC Sukanya Samriddhi Yojana?

The Government of India announced the Sukanya Samriddhi Yojana (SSY) under the initiative, ‘Beti Bachao Beti Padhao’. It is a savings scheme that helps parents or guardians grow funds for the future of their girl children. 

You can invest in this government-backed small savings scheme through HDFC Bank. With systematic periodic savings in the HDFC Sukanya Samriddhi Yojana account, you can build funds for your daughter’s marriage or higher education. The bank makes the management of the SSY account quite effortless. You can even set up the auto debit facility to ensure that a fixed amount of money gets transferred to the account automatically.

Features of HDFC Sukanya Samriddhi Account

Following are the salient features and benefits of HDFC Sukanya Samriddhi Yojana:

1. By investing in the scheme, you can enjoy an interest rate of 8% per annum.
2. The minimum deposit amount in a financial year is only ₹250 in a financial year. The upper deposit limit in a financial year is ₹1.5 lakhs.
3. You can deposit on your SSY account for up to 15 years, starting from opening the account.
4. The maturity period of the HDFC Sukanya Samriddhi Yojana account is 21 years or till the age when the girl child gets married after 18 years, whichever is earlier.
5. A partial withdrawal facility before maturity is available to bear the expense of marriage or higher education of the beneficiary.
6. The SSY account will be closed in case of the marriage of the beneficiary before maturity.

Benefits of Sukanya Samriddhi Account with HDFC 

Here are the major benefits of growing money with the HDFC Sukanya Samriddhi:

• Tax Benefits: The interest earned from the HDFC Sukanya Sammriddhin Yojana does not fall under income tax obligations. Plus, the SSY deposits qualify for tax deductions under Section 80C. So, you can reduce your financial liabilities by investing in the HDFC Sukanya Samriddhi Yojana account.
• Stable Interest Rate: The interest rate for the SSY savings scheme is much higher than the normal savings account. You can grow your money at the rate of 8% per annum. The earned interest is accrued on your account every month.
• Financial Security for Girl Child: The scheme lets you systematically save money for the future of your girl child. You can grow the fund with a 21-year investment horizon to secure the financial needs for the education and marriage of your girl child.
• Restricted Withdrawal: Only the beneficiary girl child will be able to withdraw the maturity amount. You or your spouse as parents or guardians cannot withdraw for any personal reason. This is why you can stay completely assured about the financial security of your girl child by investing in this savings scheme.
• Flexible Investment Amount: The investment amount starts from ₹250 only and goes up to ₹1.5 lakhs per year. You can choose a deposit amount at your convenience and keep your Sukanya Samriddhi account in HDFC Bank active till maturity quite comfortably.
• Easy Application Process: HDFC lets you open an SSY account effortlessly by submitting the duly filled-in application form at the branch. After opening the account, you can easily manage or deposit in your HDFC Bank Sukanya Samriddhi Yojana online through the net banking facility.

Eligibility Criteria to Open HDFC SSY Account

The following are the eligibility criteria for opening a Sukanya Samriddhi account in HDFC Bank:

1. Natural/legal guardians of a girl child of up to 10 years of age can open the SSY account for the minor.
2. A natural/legal guardian can open a maximum of 2 girl children.
3. The guardian can open only one SSY account in the name of a girl child.

Documents Required to Open a Sukanya Samriddhi Yojana in HDFC Bank

You will have to submit self-attested photocopies of the following documents with the application form for opening the Sukanya Samriddhi account in HDFC Bank:

1. Birth certificate of the beneficiary
2. Guardian’s address proof (ration card, passport, utility bill, voter ID card)
3. Identity proof of the beneficiary’s guardian or parents
4. 2 passport-size photo of the girl child 

How to Open a Sukanya Samriddhi Yojana Online Account in HDFC Bank?

As of now, HDFC Bank branches do not facilitate the online opening of an SSY account. However, account holders have the convenience of managing their accounts online by setting standing instructions once the account is opened.

Stepwise Process to Open an SSY Account

Here are the steps you will have to follow to open your HDFC Bank Sukanya Samriddhi Yojana account offline:

• Step 1: Go to the nearby branch of HDFC Bank.
• Step 2: Get the application form for HDFC SSY account opening. 
• Step 3: Fill in the application form carefully.
• Step 4: Submit the signed-in HDFC Sukanya Sammriddhi application form along with all the necessary documents.
• Step 5: Deposit your investment amount. 
• Step 6: Give your standing instructions on whether you want the auto credit option to deposit on your SSY account. 

After this, you will complete the application process for the SSY account at HDFC.

HDFC Sukanya Samriddhi Yojana Formula and Calculation

Here is the formula used in the calculation of SSY maturity value: A = P(1+r/n)^nt 

In this formula, ‘P’ refers to the deposit amount, ‘r’ indicates the interest rate, ‘t’ stands for the total investment years, ‘n’ refers to the compounding frequency and ‘A’ is the maturity amount.

Let us understand this formula with the help of an example. Suppose you want to make a yearly investment of ₹25,000 in the HDFC SSY scheme. Considering the applicable interest rate is 8%, the maturity value of your investment can be calculated by using the formula. 

 A = 25,000(1+8/4)^4*15 = ₹1,34,86,229.

Applying this formula to calculate the maturity value of your SSY investment can be challenging for some individuals. In that case, you can use the HDFC SSY calculator to complete the calculation within seconds.

How to Use an HDFC SSY Calculator?

You can calculate the provisional maturity amount and the interest earned on your estimated regular deposits using the HDFC Sukanya Samriddhi Yojana Calculator. Here are the steps to use this online tool:

• Step 1: Open the HDFC SSY Calculator available on the official portal.
• Step 2: Enter the deposit amount and the number of deposits in a year.
• Step 3: Click on ‘Calculate’.

You will get to see the total interest and maturity value along with the amortisation schedule.

Tax Benefits on HDFC SSY

The tax benefits on the HDFC SSY investment are as follows:

1. According to Section 80C of the Income Tax of India, you can enjoy income tax deductions on your deposits made to the HDFC SSY account for up to ₹1.5 lakhs.
2. The compound interest earned after the maturity of your SSY deposits is free from any income tax liabilities.

HDFC Bank Sukanya Samriddhi Yojana Account Withdrawal Rules

You can withdraw your SSY balance under certain circumstances, as mentioned below:

1. The beneficiary getting married after 18 years of age (intimation about the marriage should be within the period between 1 month before the event and 3 months after that)
2. The beneficiary seeks admission for higher studies after 18 years of age.
3. In the event of a beneficiary changing his/her citizenship or country of residence. 

You can also opt to close your SSY account prematurely for other reasons, however, in that case, the applicable interest rate will be similar to the interest rate for the India Post Savings account.

How to Withdraw Sukanya Samriddhi Yojana in HDFC Bank?

You will have to follow the steps mentioned below to withdraw the HDFC SSY maturity amount:

• Step 1: Visit the home branch of HDFC Bank.
• Step 2: Request for the withdrawal form for the Sukanya Samriddhi account.
• Step 3: Fill in the form and attach all the required documents.
• Step 4: Submit the form.

Once you go through the above-mentioned steps, the bank branch will verify your application form and documents. Upon successful verification, the bank will approve your withdrawal request.

How Many Accounts Can be Opened in Sukanya Samriddhi Yojana?

As a natural/legal guardian, you can open up to 2 Sukanya Samriddhi accounts for 2 girl children. However, you can open 3 separate accounts only if the mother gives birth to twins after the second pregnancy

Difference Between HDFC PPF and SSY

Public Provident Fund (PPF) and the Sukanya Samriddhi Yojana (SSY) are both government-backed investment schemes, offering tax benefits under Section 80C of the Income Tax Act. However, these schemes are launched for different purposes with several differences setting them apart. The following are the key differences between the two schemes. 

How to Check Sukanya Samriddhi Yojana Account Balance in HDFC Bank?

Here are the steps to update the Sukanya Samriddhi Yojana account at HDFC Bank:

• Step 1: Visit your bank branch with the passbook.
• Step 2: Go to the passbook updation counter.
• Step 3: Get your passbook updated.

After this, you will get to see the current balance on your HDFC SSY account.

HDFC Sukanya Samriddhi Yojana Form

To open your account for Sukanya Samriddhi Yojana in HDFC Bank, you will have to collect the application form from an authorised HDFC branch. 

What Is the Minimum Amount Required to Open an Account under Sukanya Samriddhi Yojana?

The minimum deposit amount on the Sukanya Samriddhi Yojana is ₹250 per financial year. Earlier, the minimum investment amount for Sukanya Samriddhi Yojana was ₹1,000. However, from the year 2018, the government reduced the required investment amount.

What Is the Duration of the HDFC Sukanya Samriddhi Yojana Account?

The maturity period of an HDFC Sukanya Samriddhi Yojana account is 21 years. You will have to keep on depositing financial year till the age of your account becomes 15 years.

Final Word 

What the financial situation will be after a few years is not certain. It is better to stay financially prepared for the upcoming expenses like the marriage and education of daughters. With the HDFC Sukanya Samriddhi Yojana account, you can save and grow money for the secured future of your girl child.

FAQs

Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.