SSY Scheme: How to reactivate the default Sukanya account, know what is the new interest rate on SSY?

SSY Scheme: The objective of Sukanya Samriddhi Yojana is to cover the expenses of school education and marriage of the girl child. The scheme encourages parents to save for the cost of their daughter’s future education and marriage. The Finance Ministry has announced interest rates on Sukanya and other small savings schemes for the July-September quarter.

Interest rate on Sukanya Samriddhi Yojana

The interest rate on Sukanya Samriddhi Yojana along with other small savings schemes is determined by the government. For the July-September 2023 quarter, the government has continued the 8% interest rate on an annualized basis. Interest is calculated on the lowest balance in the account between the 5th day of the calendar month and the end of the month. Whereas, the interest is credited to the account at the end of each financial year.

What are the benefits of Sukanya Yojana?

The annual minimum investment in Sukanya Yojana is Rs 250, while the maximum investment is fixed at Rs 1,50,000. The tenure of Sukanya Yojana is 21 years. Under Section 80C of the Income Tax Act, the amount received on maturity along with the principal amount and interest is tax-free.
The account can be transferred anywhere in India from one post office or bank to another. At the same time, even after maturity, interest is earned if the account is not closed.

When does the account default and how will it be activated again?

Deposits are allowed after 15 years from the date of opening of Sukanya account. If the minimum deposit of Rs 250 is not deposited in a financial year then the account is said to be in default. Default accounts can be activated again before the completion of 15 years by paying a minimum penalty of Rs 50.

Also Read This: PM Sukanya Samriddhi Yojana: How to open Sukanya Samriddhi account online and check balance.

Withdrawal rules from SSY Scheme

• The amount can be withdrawn from the account after the girl child turns 18 or completes 10th standard.
• Withdrawal is permitted up to 50% of the balance available at the end of the previous financial year.