Sukanya Samriddhi Yojana Account (SSY) – Savings Scheme for a girl Child
This Yojana is a small scheme introduced for the better future of girl child in India. This Scheme by the PM was launched in the month of January this year (2015). The main focus of the Sukanya Samriddhi Yojana is to cope up with the marriage requirements as well as the higher education of girls in the country.
The Indian government has increased the interest rate for the money contributed under this Scheme. Additionally, this scheme also provides benefits on income tax.
Procedure to Open an Account:
The Sukanya Samriddhi Yojana account can be easily opened in any of the commercial banks (Like SBI, PNB, ICICI, HDFC etc) or your nearest post office. A maximum of 2 accounts can be opened for two girl children of the same family. Third account is possible in case if 2 younger daughters are twins. You cannot apply Sukanya account online. You can get the Sukanya application form in the bank and post office branch.
The other beneficial aspect about this scheme is that the account opened under this plan can be easily transferred to any of some other preferred bank or post office around the country (India). There will be a transfer fee of Rs 100 in case you transfer this account from banks to post office or vice versa.
Age Limit for Opening an Account:
Sukanya Samriddhi Yojana account can be opened even at the time of birth of a girl child. The maximum age for opening an account under this scheme is 10 years.
Required Documents for Opening Sukanya Account
- ID proof of the guardian: the proof of identification of child’s legal guardian is required such as passport, voter ID, PAN card, matriculation certificate. Some government issued certificate can also be provided for identification purpose.
- Address proof of the guardian: Any of these below mentioned documents could be as an address proof for opening an account.
- Ration card
- Voter ID
- Telephone bill
- Electricity bill
- Passport, or
- Any certificate issued by the Indian government
- Birth certificate of the girl child: generally, the birth certificate is given by the hospital where the girl child took birth. In some exceptional cases, a certificate provided by the Indian government for the domicile will also be valid for this purpose.
The interested candidate can open Sukanya Samriddhi account in any of the post offices as well as in twenty eight other government banks by providing all the above mentioned details together with a deposit of one thousand rupees by the guardian of the girl child. The other beneficial aspect about this government scheme is that there is no need for the girl child to be present at the post office or bank while opening an account.
Minimum and Maximum Limit of the Deposits:
The minimum amount of cash that has to be contributed under this government scheme is one thousand rupees. After that guardian of the girl child can deposit any figure in multiples of one hundred rupees to the Sukanya Samriddhi account on monthly basis. The most amazing fact about this scheme is that the concerned person is allowed to make endless number of deposits to the account either in a year or in a month.
The deposits to this account can be easily made either by demand draft, cheque or by cash. The maximum limit of the amount that can be deposited to the Sukanya Samriddhi account is 1.5 lakhs per year.
The maturity duration of the Sukanya Samriddhi Yojana is 21 years from account opening date. The parent of the girl child can deposit the money to the account only for the duration 14 years from the date of opening an account. After this duration there is no need to contribute any amount till the maturity of the account. An early withdrawal of fifty percent amount is permitted only when the girl child turns 18 as this amount can be utilized for the higher education of the child.
The closure of the account is valid only after the girl turns 21. In case the accumulated amount is not withdrawn even at the time of account maturity then, it will not continue to earn interest.
Rate of Interest Fy 2017-18
The rate of interest on Sukanya Samriddhi Account is not fixed. The rate of interest on the scheme can be declared or increased by the government of India on quarterly basis. For the year 2017-18, the Sukanya Samriddhi account will be paid 8.4 percent interest rate by the government against 7.9 percent on PPF.
There are 2 points to this entire procedure where the first is the sum that is contributed every year. The investment here is can be claimed under section 80C. Interest Paid under this scheme is also tax free. So it comes under EEE category.
Note :- You cannot claim more then Rs 1.5 Lakhs in section 80C, this includes all your investment. For example you have invested rs 1.5 Lakhs in your PPF and rs 1.5 Lakhs. This makes you investment to rs 3 lakhs. But you can claim a max rs 1.5 lakhs only as tax free amount.
Sukanya Yojana Chart and Calculator
Monthly Contribution Table :- We are assuming that customer pay monthly investment before 5th of every month for 14 years.
|Sno||Montly Investment||Int Rate||Maturity Amount after 21 years|
Yearly Contribution Table
We are assuming customer would deposit this money before 5th April each year for 14 years.
|Sno||Yearly Investment||Int Rate||Maturity Amount after 21 years|
Save For Every Girl Child:
The Sukanya Samriddhi scheme can only be utilized for a minor girl child. The age of the child should be less than 10 years. On the other hand, there is a allowance that has been offered whereby in case the child turns ten between the duration of December 2013 to December 2014 then, the Sukanya Samriddhi account can still be opened with her name. Under the rules of this government scheme, the account can be opened only by the biological guardians of the girl child or the legal guardian.
The investments in the account can be made to her account on a monthly basis. There can just be a single account opened in the name of one child. Along with this scheme, the government has declared a few basic initial credentials that are required to be presented along with the birth certificate of the girl child. For the completion of this process the identity and address proof of the depositor is also required to be submitted with the application form.
There is a relieve in terms of account opening under the Sukanya Samriddhi Yojana since this is a small initiative by the government to save the basic expenses for the higher studies and marriage of every girl child in India.