Have you heard of Sukanya Samriddhi Yojana .If not, then you are at right blog. Instead, I should have asked you, are you saving enough for your daughter’s future? It is always difficult to predict how much to save for a girl child. But if you have decided to save for her, then why not to save in the best scheme with great benefits.
Sukanya Samriddhi Yojana is a part of Beti Padhao Beti Bachao andolan under which one can save for future of his girl child. Basically it is a deposit scheme for girl child started by government of India for girl child welfare. The main benefits of this scheme are high interest rate of 8.5 % (applicable from 01.01.17 to 31.03.17) and tax rebate. The scheme ensures that the girl receives equitable shares of resources of the family.
What are the details of Sukanya Samriddhi Yojana
- SSY can be opened with any authorised banks or Indian Post office
- It can be opened by anybody for his girl child from the date of her birth till the date she attains the age of ten years.
- The minimum amount to be deposited is Rs. 1000 per year. Maximum amount is Rs. 1,50,000/- per year.
- The amount shall be operative only for 21 years from the date of opening of account, or can be operative till her marriage after she attains 18 years of age.
- Withdrawal of 50 % of the balance in the account is permitted only for educational expenses of the child with the condition that she attains the age of 18 years.
- The rate of interest on deposit may change every year. The current rates is 8.5% p.a
- Birth certificate of girl child is mandatory document. In addition to that identity and address proof of guardian are required.
- The account will be operated by girl child after 18 years of age, before that guardian can operate the account.
What is the eligibility for Sukanya Samriddhi Yojana
Natural or legal Guardians: It means the parents or guardians who are legally taking care of the girl child can open the account.
Only two girls child are allowed in a family.
What is the age limit for Sukanya Samriddhi Yojana
The account can be opened from the time of her birth till she attains the age of ten years.
One year grace period was given to a girl child, who had already attained the age of ten years,one year prior to the date when this scheme came to force.
The scheme came into force vide notification no. GSR No. 863 (E) dated 2nd December, 2014.
So Girl child who is born on or after 2.12.2003 can open account.
How to open Sukanya Samriddhi Yojana Account
Natural or Legal guardian can open account with any authoirsed bank or Indian Post office.
Girl child shall be called as “ Account Holder”
A Guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different girl children.
The document required are as follows:
- Duly filled SSY account opening form
- Birth certificate of Account holder (Girl) is mandatory.
- Address Proof of Guardian: voter ID, Passport, Driving Lecense, Ration Card, Electricity or telephone bill etc.
- Identity proof of Guardian: PAN Card, voter ID, Passport, Matriculation certificate or any other identity proof issued by government of India.
What is minimum and maximum deposit amount for Sukanya Samriddhi Yojana Account
Rs. 1000/- is required as initial deposit to open the account.
After that any amount in multiple of Rs. 100/- can be deposited.
Minimum amount to be deposited in a year is Rs. 1000/-
Maximum amount to be deposited in a year is Rs. 1,50,000/-
Deposit may be made in an account till the completion of 15 years from the date of opening of such account.
If the minimum amount is not deposited in a year, then the account considered as an account under default and can be revived with a penalty of Rs. 50/- per year with the minimum amount of that year.
Mode of deposit can be cash/cheque/Draft/e-transfer.
How to withdraw money from Sukanya Samriddhi Yojana Account
Withdrawal of 50 % of the balance in the account is permitted only for educational expenses of the child only when she attains the age of 18 years or has passed 10th standard, whichever is earlier.
Application for withdrawal shall accompanied with documentary proof like offer of admission or fee slip.
Withdrawal may be made as one lumpsum or one installment not exceeding one per year for a maximum of five per year.
Withdrawal amount restricted to actual amount of fee and other charges required at the time of admission as shown in admission documents.
How to close a Sukanya Samriddhi Yojana Account
Account can be closed after completion of 21 years and account holder will get the amount with interest after showing relevant proof of her identity, residence & citizenship.
If the account is not closed after maturity, no interest will be payable on such balance.
Normal premature closure will be allowed for the purpose of girl marriage provided that documentary evidence support the girls age to 18 years.
In case premature on account of death of the account holder, balance amount will be paid to the guardian with interest till the month preceding the month of premature closure.
What are the authorised banks for Sukanya Samriddhi Yojana Account
Almost all the nationalized (government) bank are authorized.
- SBI Bank
- Bank of Baroda
- Punjab National bank
- Andhra Bank
- Allahabad Bank
- Bank of India
- Canara Bank
- Bank of Maharashtra
- Central Bank of India
- Corporation Bank
- Dena Bank
- Indian Bank
- Indian Overseas Bank
- Oriental Bank of commerce
- Punjab &sind Bank
- Syndicate Bank
- UCO Bank
- Union Bank of India
- United Bank of India
- Vijaya Bank
- State Bank of Maysore
- State Bank of Travancore
- State Bank of Hyderabad
- State Bank of Bikaner & Jaipur
- State Bank of Patiala
- IDBI Bank
In private banks, ICICI and axis bank are also authorized.
How can I find Sukanya Samriddhi Yojana Calculator
In the following table I have presented the earnings of Sukanya Samriddhi Yojana Account. If you deposit Rs. 1000 per month i.e Rs. 12,000 per year, then at the end of 21 years you will have Rs. 5,99,701 in your account. It means you have deposited Rs . 1,80,000 for 15 years and you received Rs. 4,19,701 extra at the end of 21 years.
|year||Child Age||Date of Deposit||Deposit Amount during the year||Principal amount in year end||Total yealy interest @8.5%||Total amount year end|
|A||B||c||D||E||F = E*8.5%||G = E+F|
Please Note: Interest under Sukanya Samriddhi Yojana may change year to year.
The present interest rates are 8.5% p.a applicable from 01.01.17 to 31.03.17. Find here notification for change in rate of interest for sukanya samriddhi scheme
Download here the form for Sukanya Samriddhi Yojana Account
What are the advantages of Sukanya Samriddhi Yojana Account
- The amount deposited in the account will be eligible for income tax deduction under section 80C
- High rate of interest as compared to other risk free deposits
- The deposit amount remained locked for a fixed period and can be utilized for girl welfare only.
- On completion of 21 years, the amount is to be given to girl child or she had option to continue the account earning the same rate of interest.
- Minimum amount to be deposited in a year is affordable i.e Rs. 1000/- .
What are the disadvantages of Sukanya Samriddhi Yojana Account
- The interest rate may vary from year to year and may not remain as high as declared in first year of launch.
- Very few online facilities for SSY account.
- The lock in period is too high and there is no loan facility against deposit.
- The scheme is only available for girl child upto the age of 10 years.