Sukanya Samriddhi Yojana-Benefits and Interests

Sukanya Samriddhi Yojana-Savings for Girl Child

On December 12, 2019, the Sukanya Samriddhi Account Rules, 2016, were repealed, and the new Sukanya Samriddhi Yojana 2019, was implemented.

With the help of this deposit plan, you may consistently save money for your daughter. As the year goes on, consistent deposits will allow you to build up a sizable corpus. You can use this corpus to help your girl child achieve her aspirations for marriage, education, and other things.

Sukanya Samriddhi Yojana is one of the programmes the government has implemented as part of the “Beti Bachao Beti Padhao” Yojana, which Prime Minister Narendra Modi unveiled in 2015. Among the other programmes introduced were the “Dhanlakshmi Scheme” and the “Ladli Scheme.”

The programme encourages parents to create a fund to cover their female child’s future school and marriage costs. Any India Post office or certain commercial bank branches will let you open an account.

Sukanya Samriddhi Yojana-Who can open the Account?

For the Child (account holder)

• The savings programme known as Sukanya Samriddhi Yojana is only available to female children.
• This child should not be older than 10 years. There is, however, a one-year grace period.

For the parents

• The account can only be opened on behalf of a girl child by her biological parents or legal guardians.
• For their girl offspring, one parent or legal carer may create up to two accounts.
• The parent or legal guardian may create up to three accounts in the event of twins or triplets.
• The account holder must be an Indian national who is a resident of India at the time of account opening and must continue to be there until the account matures or is closed.

Benefits of opening the account-Sukanya Samriddhi Yojana

• The account holder receives a competitive interest rate, which is occasionally regulated by the Ministry of Finance.
• A minimum investment of Rs 1000 and a maximum investment of Rs 1.5 lakh can be made in a financial year.
• At the age of 18, the account permits a 50% withdrawal for further education.
• At age 21, the account becomes mature. The account will continue to generate interest at the current rate if it is not closed. Normal closure is permitted if the girl is over 18 and married.

Tax Benefits

• Tax benefits of up to Rs. 1.5 lakh are offered for contributions made to the plan under Section 80C of the Income Tax Act of 1961.
• The amount of interest earned is also exempt from taxation.
• The maturity amount or withdrawal amount also offers tax advantages.

Interest rate-Sukanya Samriddhi Yojana

The government has shared the Interest rates which have varied over various years. Following are the given interest rates over the years.

Maturity-Sukanya Samriddhi Yojana

• After a period of twenty-one years from the date of opening, the Account will mature.
• With the caveat that the final closure of the account may be permitted before the end of that twenty-one-year period if the account holder requests it on paper and provides age documentation proving that the applicant won’t be under the legal age of eighteen on the date of marriage in order to request the premature closure because of the intended marriage of the account holder:
• With the caveat that no such premature closure shall be made one month prior to the wedding date or after three months following the wedding date.
• To satisfy the financial needs that the account holder must meet to pursue higher studies, the withdrawal of 50% of the balance to the account’s balance at the close of the previous financial year is permitted.
• But, withdrawals can be allowed only after the account holder is age 18 or is in the 10th standard or earlier.
• It is not only an application in writing and documentary proof in the form of a valid admissions offer from an educational institution or a demand from the institution confirming that the financial requirements are necessary.
• The withdrawal amount is limited to the actual amount of fees and other charges required to be paid at the time of entry, as stated in the offer of admission or on the appropriate fee slip that the institution/college issues.
• The withdrawal may be made as a lump sum or in instalments of not more than once per year, a maximum of five years, subject to a maximum amount confirmed by the institution/college of education.

How to open a Sukanya Samriddhi Yojana account at a bank branch

In order to open an account under Sukanya Samriddhi Yojna, the following is the list of steps:

Step 1: Visit the authorised bank’s local branch.

Step 2: Provide the necessary information on the Sukanya Samriddhi account form.

Step 3: Submit supplemental documentation. These papers comprise the following:

• Identity evidence of the girl’s parents or guardianship
• Proof of the parent’s or guardian’s residency
• the parent or legal guardian’s picture
• child’s birth certificate

Step 4: You must now pay the initial down payment, which can be anything between Rs. 250 to Rs. 1.50 lakhs. You may pay for this using cash, a demand draught, or a check.

Step 5: Your application and payment are now being processed by the bank.

How to open an account in the Post office for Sukanya Samriddhi Yojana:

The alternative is to create a Sukanya Samriddhi yojana account through a post office. Just carry out these actions.

• Go to the site and fill out the form with the name of the branch
  • Mention the corresponding account number if you already have a savings account with this post office.
  • Under the option ‘To The Postmaster.’ Mention the Name of the post office branch as well as postal address details
  • On the right, paste the applicant’s photograph.
  • Now, you will find an option named ‘I/We.’ Here, enter the name of the applicant and mention ‘Sukanya Samriddhi Yojana’ in the following space.
  • You need to skip the content box as it is only applicable for opening a PO savings account.
  • Tick the type of account under the section ‘Account Holder Type.’ In case of queries or doubts, feel free to seek help from personnel at the post office.
  •  At this stage, you must fill out the table with information about the applicant, including their name, gender, residence, Aadhaar number, and PAN.
  • At the bottom of Page 1, the applicant must sign to confirm that the information provided thus far is authorised.
  • If you want to set up recurring payments for your Sukanya Samriddhi Yojana account, turn to Page 2 Section (5). Here, you must check the box next to SSA confirming that no additional accounts have been created in the depositor’s name.
  • Present the nomination information, include the time and location, and sign at the conclusion of this part.
  •  If the applicant cannot read or write, you must obtain the signatures.
  • In the case of the applicant being illiterate, you must get the signatures of 2 witnesses.
  • Attach supporting documents and proofs with this Sukanya Samriddhi account form.
  • Pay the initial deposit in cash or via a cheque or demand draft.