All You Need To Know About Sukanya Samriddhi Yojana

All You Need To Know About Sukanya Samriddhi Yojana Account

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana account is a Government of India backed scheme. A Sukanya Samriddhi Yojana account can be opened at any time after the birth of a girl child till she turns 10 with a minimum deposit of Rs 250. The objective of the Sukanya Samriddhi Yojana is to encourage people invest in this saving scheme, that enables the parents save for the girl child’s future.

The maximum of Rs 1.5 Lakh a year can be deposited in SSY scheme. Currently, the scheme is offering an attractive interest of 8.1% a year as well as provides tax exemption under Section 80C of the income tax act, 1961. The interest earned under SSY scheme is tax free.

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All You Need To Know About Sukanya Samriddhi Yojana Account?

Highlights of the Sukanya Samriddhi Account:

Listed below are some of the important features of the Sukanya Samriddhi Account:

• Under the Sukanya Samriddhi Scheme the parents of the girl child can hold two accounts simultaneously for two girl children. Also a maximum of three accounts can be held in case the parents have twins along with the second girl child.
• The minimum annual deposit that has to be made towards Sukanya Samriddhi Yojana is Rs 250 with the maximum annual limit being Rs 1.5 Lakhs. Earlier, the minimum limit was Rs 1,000 which has been reduced to make the scheme accessible to the masses.
• The rate of interest under the Sukanya Samriddhi Account Scheme is 8.5% for FY 2018-19. The interest rate is reviewed each quarter.
• The Sukanya Samriddhi Yojana offers very high interest vis-à-vis other fixed income schemes.
• A person enrolling under Sukanya Samriddhi Account enjoys tax benefits under Section 80C of the Income Tax Act, 1961, on investments towards Sukanya Samriddhi Yojana.
• At the end of the year, a payment of Rs 50 has to be made over the minimum annual deposit towards the Sukanya Samriddhi Yojana savings scheme, as confirmation for reviving the account.
• In case of untimely death of the account holder, the account can be closed prematurely.
• The monthly deposit can be made towards the scheme through cheque, demand draft or cash.
• The account holder of this scheme can withdraw up to 50% of the accumulated amount after the girl attains the age of 18 years, by furnishing requisite documents.
• On maturity the account holder will be given the principal amount along with the accrued interest.
• Sukanya Samriddhi Yojana accounts mature after 21 years from the issuance of the account or on the day of the girl’s marriage, whichever is earlier.
• An annual fee of Rs 250 must be paid by the account holder to prevent account deactivation.

See Also: Minimum Deposit Reduced To Rs 250 for Sukanya Samriddhi Yojana

Requisite Documents for opening Sukanya Samriddhi Yojana Account:

Listed below are some of the important documents that must be submitted by the parents of the girl child to open the Sukanya Samriddhi Yojana Account:

• Duly filled and signed account opening application form.
• Birth certificate of the beneficiary girl child.

Address proof of the guardian or the parents of the beneficiary girl child like Aadhaar card, Ration card, PAN card and so on.

• Identity proof of the parents or the guardian.

A guide to open a Sukanya Samriddhi Yojana Account:

To open a Sukanya Samriddhi Yojana Account, follow the steps mentioned below:

• Fill the account opening form.
• Attach the supporting documents along with the form and passport sized photographs.
• Pay the deposit amount (the account allows a deposit ranging from Rs 250 to Rs 1.5 Lakh).
• The account holder can give standing instructions at the branch to set up automatic credit for SSY account through net banking.

Eligibility for Sukanya Samriddhi Yojana Account

The objective of Sukanya Samriddhi Yojana Scheme is to ensure the financial independence of women, by encouraging them invest in a savings scheme that would enable the achievement of long-term financial goals like higher education and marriage for financial stability. Parents or a legal guardian of a girl child aged less than 10 years can open the account on behalf of the beneficiary.

How many Sukanya Samriddi accounts can I open?

Under the Sukanya Samriddhi Scheme, the parents of the girl child can hold two accounts simultaneously for two girl children. A maximum of three accounts can be held in case the parents have twins along with the second girl child.

How much can I deposit?

The minimum annual deposit that has to be made towards Sukanya Samriddhi Yojana is Rs 250 with the maximum annual limit being Rs 1,50,000. The minimum limit was Rs 1,000, but has been reduced to make the scheme accessible to the masses.

Tenure of the deposit:

Sukanya Samriddhi Yojana Scheme has tenure equal to the time the girl child is 21 years of age or on her marriage (This must be 18 years). However, contributions must only be made for 15 years. Thereafter, the account continues to earn interest until maturity, even if no deposits are made.

Open a Sukanya Samriddhi Account online

Follow the simple steps given below to open Sukanya Samriddhi Account:

• Download the online application by visiting the bank’s website.
• Fill the form with requisite information related to name and state of birth of the beneficiary girl child for whom the account is being opened.
• Provide the complete details of the parents or the guardian, proof of address and proof of identity along with KYC documents.
• Submit the form along with the supporting documents at any National bank or post office in India.

Premature Withdrawal

The scheme allows the account holder, the option of availing premature withdrawal facility, which is not more than 50% of the balance in the Sukanya Samriddhi Account. This amount can only be withdrawn by the beneficiary girl child when she attains the age of 18 years. To make sure the money is not used for other purpose, the bank requires authentic documents, of the purpose of withdrawal.

Tax benefits of Sukanya Samriddhi Yojana:

The government has offered certain tax benefits to the account holders under this scheme. The tax benefits are mainly offered to encourage the ‘Beti Bachao Beti Padhao’ scheme and also to promote the scheme:

• Investments made in the SSY scheme are eligible for deduction under Section 80C of the Income Tax Act, 1961. A maximum cap of Rs 1.5 Lakh can be availed in a financial year.

• The interest incurred on deposits made towards Sukanya Samriddhi Yojana gets compounded annually and are exempt from income tax.
• The proceeds received on maturity or withdrawals are also exempt from income tax.

See Also: Save tax using the Sukanya Samriddhi Yojana

Authorized banks for Sukanya Samriddhi Yojana Account:

Given below is the list of the banks from where you can open a Sukanya Samriddhi Account:

• State Bank of India (SBI)
• State Bank of Hyderabad (SBH)
• State Bank of Travancore (SBT)
• State Bank of Mysore (SBM)
• State Bank of Patiala (SBT)
• Syndicate Bank
• Vijaya Bank
• United Bank of India (UBI)
• UCO Bank
• Punjab National Bank (PNB)
• Oriental Bank of Commerce (OBC)
• Indian Bank
• Punjab and Sind Bank
• Indian Overseas Bank
• ICICI Bank
• IDBI Bank
• Corporation Bank
• Dena Bank
• Axis Bank
• Allahabad Bank
• Andhra Bank
• Canara Bank
• Central Bank of India (CBI)
• Bank of Maharashtra (BOM)
• Bank of Baroda (BOB)

Sukanya Samriddhi Yojana is a great initiative taken up by the Government of India to empower the girl child. It is a part of the ‘Beti Bachao Beti Padhao Yojana’ which aims to save and educate the girl child. The scheme provides an avenue for the parents to make contributions and build a corpus for future expenditure, enabling them fulfil the dreams of the girl child.

The scheme offers funds not only for the education of the girl child, but also for marriage. The scheme is very affordable and is currently one of the best savings schemes in terms of interest rate.

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