Sukanya Samriddhi Yojana Details, Interest Rate, Benefits

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Sukanya Samriddhi Yojana was launched by Prime Minister Narendra modi on 22 January 2015 as a part of the Beti Bachao, Beti Padhao campaign. The scheme aims to ensure a bright future for the girl children by facilitating their education and marriage expenses.

Sukanya Samriddhi Yojana

Features of Sukanya Samriddhi Yojana

Under the scheme –

  • A parent or legal guardian can open an account in the name of the girl child until she attains the age of ten years
  • The account can be opened in any post office branch and designated public sector banks.
  • The rate of interest for the scheme is an attractive 9.2 per cent which will be compounded annually. This rate, however, will be revised every year by the government and will be announced at the time of the Union Budget.
  • The minimum deposit that needs to be made every year is Rs 1,000, and the maximum amount that can be deposited in a year is Rs 1,50,000. There is no limit on the number of deposits either in a month or in a financial year.
  • In case the required minimum annual deposit of Rs 1,000 is not made by a parent or a guardian, the account will cease to be active. In such a situation, the account can be easily reactivated by paying a penalty of Rs 50 per year along with the minimum amount required for deposit for that year.
  • The account will be valid for 21 years from the date of opening, after which it will mature and the money will be paid to the girl child in whose name the account had been opened. If the account is not closed after maturity, the balance amount will continue to earn interest as specified for the scheme from time to time.
  • The account will also automatically close if the girl child gets married before the completion of the tenure of 21 years
  • Deposits can be made up to 14 years from the date of opening of the account. After this period the account will only earn interest as per applicable rates.
  • Premature withdrawal – withdrawing money before the completion of the maturity period of 21 years – can only be made by the girl child in whose name the account has been opened after she attains the age of 18 years. This withdrawal will also be limited to 50 per cent of the balance standing at the end of the preceding financial year, and will only be allowed for the purpose of higher education or if the girl intends to get married. It is also worthy to note that in order to make a withdrawal, the account should have a deposit of at least 14 years or more.
  • A parent or guardian can open only one account per girl child, and a maximum of two such bank accounts in the name of two girl children. In case of twin girls as second birth, or if the first birth itself results in the birth of three girl children, three bank accounts can be opened in the name of three girl children
  • The deposits made to the account, and also the proceeds and maturity amount would be fully exempted from tax under section 80C of the Income Tax Act.
  • The account can be prematurely closed only under two circumstances.
    1. In case of the unfortunate death of the girl child (account holder), the parent or legal guardian can claim for the accumulated amount along with the interest accrued on the account. The balance would be immediately handed over to the nominee of the account.
    2. The second condition under which the account can be prematurely closed is when the competent authorities feel and confirm that it is not possible for the depositor to carry forward the account or the contributions made towards the account are causing undue hardships to the depositor
  • An account once opened can also be transferred anywhere in India

Document required for opening Sukanya Samriddhi Account

The documents required are:

  1. Certificate of birth of the girl child – provided by the hospital where the child is born or even a certificate provided by a government official.
  2. Address proof of the parents or legal guardian of the girl child – could be any one like passport, driving license, election ID card, ration card or any other address proof issued by the Government of India.
  3. Identity proof of the parents or legal guardian – Any of the documents mentioned in point 2 above, or documents like PAN card or matriculation certificate would be valid as an identity proof for opening the account.

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