How to Invest in Post Office Grama Sumangala (Sukanya Samriddhi Yojana) Scheme 5
Post office New scheme The Government of India has introduced several small savings schemes to promote financial security, especially for women and children. Among these, the Sukanya Samriddhi Yojana (SSY) is one of the most popular. In rural and semi-urban areas, people often call it Grama Sumangala scheme because it is designed to secure the financial future of the girl child.
This scheme is operated through Post Offices and Authorized Banks across India. It provides parents with an opportunity to invest a small amount every year for their girl child and receive high returns on maturity. The scheme has government backing, which means the investment and returns are safe.
In this article, you will learn everything about how to invest in the Grama Sumangala scheme in Post Office, eligibility rules, step-by-step application process, benefits, maturity value, and frequently asked questions.
Key Features of Post Office Grama Sumangala (SSY) Scheme
- Special savings scheme for girl children.
- Available through Post Offices and select banks.
- Parents or legal guardians can open the account for a girl child below 10 years.
- Minimum deposit: ₹250 per year.
- Maximum deposit: ₹1.5 lakh per year.
- Interest rate: declared quarterly by the Government of India (currently around 8% annually, compounded yearly).
- Lock-in period: 21 years from the date of account opening, or until the girl marries after 18 years.
- Tax benefits under Section 80C of the Income Tax Act.
Eligibility Criteria
To invest in the Grama Sumangala scheme, the following eligibility conditions apply:
- The account can be opened in the name of a girl child below the age of 10 years.
- Only two accounts per family are allowed (exceptions in case of twin or triplet daughters).
- The guardian should be a resident Indian.
- The scheme is not available for NRIs.
- Deposits can be made until the girl child turns 15 years old.
Documents Required
When applying for the Grama Sumangala scheme in Post Office, parents or guardians need to provide:
- Birth certificate of the girl child.
- Identity proof of parent/guardian (Aadhaar, PAN, Voter ID, Passport, Driving License).
- Address proof (Ration Card, Aadhaar, Electricity Bill, Gas Bill).
- Passport-size photographs of parent and child.
- Filled application form (available at the Post Office).
How to Open Grama Sumangala Account in Post Office
Opening an account in Post Office is very simple. The process is as follows:
- Visit the nearest Post Office branch.
- Collect the Sukanya Samriddhi Yojana application form.
- Fill in the details carefully: name of girl child, date of birth, guardian details, Aadhaar number, and initial deposit amount.
- Attach the required documents along with photographs.
- Deposit the initial amount (minimum ₹250, maximum ₹1.5 lakh).
- Submit the application form to the counter staff.
- Once verified, the Post Office will open the account and provide a passbook.
Interest Rate and Calculation
The Government of India revises the interest rates of small savings schemes every quarter. Sukanya Samriddhi Yojana generally offers one of the highest interest rates among small savings schemes.
- Current interest rate: approximately 8% per annum.
- Interest is compounded annually.
- Amount can grow more than three times by maturity.
Example of Returns
Here is an illustration:
| Yearly Investment | Total Years of Investment | Total Deposited | Approximate Value at Maturity (21 years) |
|---|---|---|---|
| ₹12,000 (₹1,000 per month) | 15 years | ₹1,80,000 | ₹4,50,000+ |
| ₹24,000 (₹2,000 per month) | 15 years | ₹3,60,000 | ₹9,00,000+ |
| ₹50,000 per year | 15 years | ₹7,50,000 | ₹18,50,000+ |
| ₹1,50,000 per year | 15 years | ₹22,50,000 | ₹46,00,000+ |
This table shows how small investments can result in large amounts at maturity.
Benefits of Grama Sumangala (SSY) Scheme
- High Interest Rate: Higher than most fixed deposits.
- Tax Benefits: Deposits qualify for deduction under Section 80C. Interest and maturity proceeds are also tax-free.
- Long-Term Growth: Investment grows steadily over 21 years.
- Secure for Girl Child: Funds can be used for education or marriage.
- Government Guarantee: Backed by the Government of India, hence no risk.
Withdrawal Rules
- Up to 50% of the balance can be withdrawn once the girl reaches 18 years, for educational expenses.
- Complete closure is allowed only when:
- Girl turns 21 years, or
- Gets married after the age of 18 years.
How to Deposit Money
- Deposits can be made through cash, cheque, demand draft, or online transfer (if available).
- The minimum yearly deposit is ₹250.
- Deposits can be made until completion of 15 years from the account opening date.
Maturity and Closure
- The account matures after 21 years.
- At maturity, the entire balance along with interest is paid to the girl child.
- If the girl gets married after 18 years, the account can be closed early.
Comparison with Other Schemes
| Scheme | Target Group | Interest Rate | Tax Benefit | Lock-in Period |
|---|---|---|---|---|
| Sukanya Samriddhi Yojana (Grama Sumangala) | Girl child | ~8% | Yes | 21 years |
| PPF (Public Provident Fund) | All citizens | ~7.1% | Yes | 15 years |
| RD (Recurring Deposit) | General public | ~6.5% | No | 5 years |
| FD (Fixed Deposit) | General public | 5–7% | Limited | 5 years |
This shows SSY has higher returns and special benefits for girl children.
Step-by-Step Guide to Invest Every Year
- Visit Post Office annually or set standing instructions through banks.
- Deposit at least ₹250 every year to keep the account active.
- Collect the passbook entry after each deposit.
- Track interest credited annually.
Important Rules
- Failure to deposit minimum amount (₹250) will make the account inactive.
- A penalty of ₹50 per year is required to reactivate.
- Maximum deposit in one year is ₹1.5 lakh.
Tax Benefits
The scheme provides Triple Tax Benefit:
- Investment up to ₹1.5 lakh is exempt under Section 80C.
- Interest earned is tax-free.
- Maturity proceeds are exempt from tax.
How to Check Account Balance
- Visit the Post Office with passbook.
- Some banks provide online SSY account checking facility.
- Annual statement is updated in passbook.
Common Mistakes to Avoid
- Forgetting to deposit minimum amount.
- Opening account after girl turns 10 years.
- Believing false agents (only Post Office and authorized banks can open accounts).
Frequently Asked Questions
Can NRIs invest in SSY?
No, only resident Indians can open accounts.
Can both parents open separate accounts for the same child?
No, only one account per child is allowed.
What happens if girl dies before maturity?
The balance is paid to the guardian or legal heirs.
Can I transfer account from Post Office to bank?
Yes, transfer between Post Office and authorized bank branches is allowed.
The Grama Sumangala / Sukanya Samriddhi Yojana scheme is one of the best financial savings plans in India for the girl child. Investing through Post Office is simple, safe, and gives excellent returns. Parents in both rural and urban areas should consider opening this account to secure their daughter’s education and marriage expenses.
By depositing even small amounts regularly, families can build a large fund over 21 years. The scheme offers financial independence, government guarantee, and tax benefits, making it one of the most trusted small savings schemes in India.