The Sukanya Samriddhi Yojana (SSY) allows account holders to transfer their accounts between authorized banks and post offices without affecting the account's benefits. According to reports from Mint, this transfer process is available when account holders need to relocate, seek better service, or require convenience. The government-backed small savings scheme currently offers a competitive interest rate of 8.1%, making it the highest among small savings schemes while providing tax benefits.
The transfer process involves five key steps as outlined by Mint. Step 1 requires submitting the SSY transfer request to the current bank through Form-5 and a transfer request letter. Step 2 involves providing all required details of the new bank branch, including contact information and address. Step 3 involves the current bank sending original account documents and investment amounts to the new branch via cheque or DD. Step 4 requires the new branch to receive the details and submit a new SSY account opening form along with KYC documents. Step 5 results in opening a new SSY account with the entire principal amount and accumulated interest at the new bank.
According to ClearTax reports cited by Mint, SSY account transfers can be made anywhere in India for free, but require proof of change of residence for either the guardian or girl child. Under normal circumstances, transfers cost ₹100 according to ClearTax. The balance transfer is possible across post offices and banks without affecting the account's benefits, ensuring continuity of the scheme's advantages.
As reported by Mint, the SSY scheme can only be opened by parents or legal guardians of girl children below 10 years of age. Investment requirements include a minimum of ₹250 per year and a maximum of ₹1.5 lakh annually. The account matures after 21 years from opening or upon marriage after 18 years, with premature closure permitted in specific circumstances such as death of the account holder or guardian. Pre-maturity withdrawal allows 50% of the balance for educational or marriage expenses when the child is 18 or has completed 10th standard.
According to Mint, the SSY scheme enjoys EEE (Exempt-Exempt-Exempt) tax status. Contributions qualify for deduction up to ₹1.5 lakh per financial year under Section 80C, while interest earned yearly and maturity proceeds are completely tax-free upon withdrawal. Once the girl child turns 18, account operation should be transferred to her, as she is permitted to manage it independently. The scheme allows deposits for 15 years with no further deposits required, and the entire accumulated corpus continues earning the prevailing guaranteed interest rate for remaining years.
