Sukanya Samriddhi Yojna: Launches by PM Modi
Sukanya Samriddhi Yojana (SSY) is a small deposit scheme for the girl child launched as a part of the 'Beti Bachao Beti Padhao' campaign. It is currently 8.1 percent and provides an income-tax benefit under section 80 C of the Income Tax Act,1961. Even the returns are tax-free in the scheme.
A Sukanya Samriddhi Account can be opened any time after the birth of a girl till she turns 10, with a minimum deposit of Rs 250 (Earlier it was Rs 1,000). In subsequent years, a minimum of Rs 250 and a maximum of Rs 1.5 lakh can be deposited during the ongoing financial year.
The account can be opened in any post office or authorized branches of commercial banks.
The account will remain operative for 21 years from the date of its opening or till the marriage of the girl after she turns 18.
To meet the requirement of her higher education expenses, partial withdrawal of 50 percent of the balance is allowed after she turns 18.
Sukanya Samriddhi Account Yojana: Features
1. Who will open this account?: A Sukanya Samriddhi Account can only be opened by the parent/legal guardian for a maximum of two female children. An exemption is provided by presenting a medical certificate from an authorized medical institution for twins and triplets.
2. Age Criteria: A Sukanya Samriddhi account can only be opened for a girl child anywhere between her birth and 10 years of age.
3. Residential status: This account can only be opened for a girl child who is a resident of India. This scheme is unavailable for a girl child having non-resident status. Even if the parents or the legal guardians are non-residents, then also this scheme will not be available to them.
If the girl child becomes a non-resident after opening this account, then this change should be intimated to the concerned post office/bank within 1 month of such change after which the account gets closed.
4. Account in the name of the girl child: Sukanya Samriddhi account must always be opened in the name of a girl child and not in the name of her parents or legal guardians. They will only deposit an amount in the account on behalf of the minor girl child.
5. Number of accounts: A single parent/legal guardian can open only one account for every girl child in the family. A maximum of two accounts for two girl children can be opened in one family.
6. Where to open this account: This account is opened in the authorized branches of Post Offices or commercial banks like State Bank of India, Bank of Baroda, Punjab National Bank, Bank of India, Canara Bank, Andhra Bank, UCO Bank, and Allahabad Bank, to name a few.
7. Documents required: There are certain documents required to open this account-
- Birth certificate of the girl child
- Address and identity proof of the depositor( parents or the legal guardians)-Aadhaar card, PAN card, passport, ration card, driving license.
- In case of twins or triplets, a medical certificate proving the order of birth of children.
- A certificate stating the nature of a relationship with the girl child. In cases where this account is opened by the biological parents of the girl child, the birth certificate will serve the requirement of this certificate. But in the case of the adopted girl child, this certificate becomes necessary.
8. The threshold of deposits: Sukanya Samriddhi account can be opened with a minimum deposit of Rs. 250 per account. A maximum limit on the amount of deposit to this account has been set at Rs.1.50 lakhs per account. There is no limit in the number of deposits in a month or a fiscal year.
9. Mode of payment of deposits: The cheque or the demand draft should be in the name of the-
- For Banks/Financial institutions- Concerned Bank Manager
- For Post Office-Concerned Postmaster
The parent or the guardian is required to write the girl child’s name and the account number on the back of the cheque or draft while making the payment of deposit.
10. Account Transferability: The option to transfer the Sukanya Samriddhi Account from the post office to post office, bank to bank, post office to the bank, and bank to post office on furnishing certain documents.
11. Penalty: A penalty of Rs.50 will be imposed if there is a failure in meeting the minimum deposit requirements.
12. The rate of Interest: The scheme is currently offering a rate of interest of 8.1% for 2018-19. This interest is compounded on yearly basis.
13. The maximum duration of deposit: The maximum duration for which a parent/guardian is required to deposit an amount in this account is 14 years. After the end of this duration, no more money is required to be deposited to this account and it will continue to accumulate interest until it matures/closed.
14. Closure of Account: This account gets closed after it attains maturity after completing the tenure of 21 years. The money lying in this account including the interest is paid to girl child after attaining 18 years of age and on submission of an account closure application along with address and identity proof, proof of residence and citizenship.
15. Taxation aspects: The total maturity amount and the interest earned on this account is fully exempted from taxation under section 80C of Income Tax Act 1961 and follows Exempt-Exempt-Exempt (EEE) tax regime. As of now, an amount up to Rs. 1.5 lakh is exempted.
16. Tenure of account: This savings account remains active for a maximum period of 21 years from the date of opening of this account, after which the account stops to accrue any interest.
How to open this account?
The parents or the legal guardians of a girl child can open Sukanya Samriddhi Account in the government approved post offices or authorized branches of the commercial banks. The procedure is easy and simple. It can be opened online as well through an offline method.
Usually, the amount of this account can only be withdrawn after the maturity period of 21 years but there are certain provisions which allow the withdrawal of this deposit amount from this account before the expiry of this period.
Premature withdrawal: The money from the Sukanya Samriddhi Account can be withdrawn before the expiry of the maturity period of 21 years. Only the girl child is eligible to withdraw this amount from the account after attaining the age of 18 years. Only 50% of the amount is permitted to be withdrawn for the purpose of paying fees for the higher education if the girl child is 18 years of age or has completed 10th standard and to get an admission in an educational institution. The account should have a deposit of at least 14 years or more.
When is premature closure of account allowed?
- Marriage of girl child: If the marriage of the girl child, for whom the account was opened, has been fixed by the parents/guardians after she turned 18, then the depositors are required to submit an application before one month of marriage or after three months of marriage with the age proof of the girl child.
Death of girl child: The account gets closed if the girl child for whom the account was opened passes away. The parent/guardian is required to show her death certificate to the bank after which the account balance will be transferred.
- Girl child becomes NRI: If there is a change in the residential status of the girl child in relation to whom the account was opened, then this information should be communicated to the bank or post office wherever the account is held within one month.
- In cases of emergency: The account can also be closed by the bank or post office after the completion of five years if maintaining this account is causing a lot of trouble to the girl child due to situations like guardian or parent’s death or medical emergency.
Banks offering Sukanya Samriddhi Account Yojana
|State Bank of India||Punjab & Sind Bank||Vijaya Bank|
|United Bank of India||Syndicate Bank||Central Bank of India|
|Corporation Bank||UCO Bank.||Indian Bank|
|ICICI Bank||Axis Bank||Canara Bank|
|Oriental Bank of Commerce||IDBI Bank||Dena Bank|
|Indian Overseas Bank||Bank of India||HDFC Bank|
|Bank of Maharashtra||Bank of Baroda||Allahabad Bank|