Sukanya Samriddhi Yojana is getting popular at a fast rate. The parents of girl child are enquiring about the scheme in detail. And why not. After all, this scheme offers the highest return on savings. Read on to know the details of this scheme.
Key Features of the Sukanya Samriddhi Yojana
- Highest rate of interest among all the small savings schemes introduced by the government.
- The rate of interest will vary each financial year depending upon certain factors. For the year 2014-15, the interest rate is 9.2%.
- People having a girl child can open Sukanya Samriddhi account. People who are legal guardians of a girl child can also open the account.
- The account holder’s name will be the girl child’s name.
- One girl child, one SSA account.
- Any parents can open maximum 2 SSA accounts.
- Until the girl is 10 years of age, parents can open her account.
- It is mandatory to deposit Rs 1000/- per year.
- Parents can withdraw up to 50% of the money from the account only after the girl becomes 18. And they can use this money for either her marriage or higher education.
- The maturity of the account is 21 years from the opening date.
- The SSA accounts hold a tax advantage. Under the section 80C, the SSA contributions will not come under taxable income.
Read about the other small savings schemes by the government.
What are the Benefits of Sukanya Samriddhi Yojana?
- Highest interest rates which means highest returns.
- Tax exemption benefit.
- Lock-in period, which will keep the money saved for girls’ marriage/higher education.
- When the account matures, the girl will have full right over proceeds.
- The girl can choose not to close the scheme after maturity. And in that case, the interest rates would still be the highest.
- Financial independence to the girl child. So, this is one among many other government initiatives for girls’ welfare.
How can you open a Sukanya Samriddhi Account?
You can open a SSA account in any of the banks listed by the government or the post office. Follow below steps to open.
- Visit the bank branch nearest to your home.
- Get the form from the bank and the deposit slip.
- Fill up the form with your details.
- Attach the necessary documents and fill up the deposit slip before attaching. You will need to make an initial deposit of at least Rs. 1000/-.
- Submit the documents with the form at the bank.
- Once done, you will receive an SSY passbook. It may take 2-3 days for the bank to activate your account.
How to open Sukanya Samriddhi Account in Post Office?
You can walk up to any post office near to your home, get the form, fill it and submit it there itself. The good thing about opening SSA account in a post office is that you will not need help of any agent and you will get the passbook immediately. Hence, do not forget to carry some cash to make initial deposit.
What is the eligibility criteria for S.S. scheme?
- The parents or the legal guardians of a girl child who is not yet 10 years of age can open the account.
- In the name of one girl child, parents can open only one SSA account.
- If a couple has more than 2 daughters, they can open maximum 2 SSA accounts only. However, there is an exception in case of twin birth of girls. In such a case, they are allowed to open third account.
What are the Documents required to open Sukanya Samriddhi account?
Keep the below documents ready when you want to open a Sukanya Samriddhi account
- Account opening form specific for Sukanya Samriddhi Yojana.
- Address proof.
- Identity proof.
- Girl child’s birth certificate.
Where can you get the Sukanya Samriddhi Yojana application form?
You can either visit the nearest bank branch or post office and collect the form, or apply online. Visit the official bank website and download the Sukanya Samriddhi Yojana application form.
Is there an Option for Premature Closure of Sukanya Samriddhi Account?
Only under the below 2 conditions, the parents of the girl child can prematurely close the Sukanya Samriddhi account.
- Unfortunate death of the Girl: In this case, bank will close the account immediately and the nominee will get the accumulated amount.
- Hardships of the Parents: In case the parents of the girl child are not capable of depositing Rs. 1000/- to the account yearly, they can request the bank to close the account.
Is it possible to Transfer the existing Sukanya Samriddhi Account?
Yes. In case you have opened a Sukanya Samriddhi account at post office, and you want to transfer it to a bank, you can do that. Also, you have the option to go from one post office to other, or one city to another. Below are the steps you have to follow to transfer a Sukanya Samriddhi account.
- Visit the bank branch or post office where the account currently is.
- They would ask you to deposit your passbook. Deposit that, and you will also have to provide KYC documents for verification.
- The bank/post office will then close your account and provide you transfer documents.
- Then you can visit the new bank and submit the transfer document along with a copy of your KYC documents.
- You will receive a new passbook.
- Wait for 2-3 days till the bank activates your account. And you are done. Your account is now transferred.
Are there any disadvantages of the Sukanya Samriddhi Yojana?
Despite its popularity, the Sukanya Samriddhi Yojana holds some drawbacks. Below points are something you should know before opening a Sukanya Samriddhi account.
- High lock-in period means that you cannot withdraw money as and when needed. As a result, people looking for short term investment might not find it useful.
- If a couple has a third daughter, then the third daughter will be void of the S.S. scheme benefits.
- There is no fixed interest rate. For now it is the highest, but government did not give any guarantee that it will not fall below a certain limit.
- If you open your account in post office, online operating option is not there.
You can share your opinion about the Sukanya Samriddhi Yojana in the comments section below.