In olden days, female children were considered as a liability and burden for Indian families. This way, the Sukanya Samriddhi Yojana is a boon to the future of under-privileged families of a girl child. Modi Government had launched the Sukanya Samriddhi Account Scheme under Beti Bachao, Beti Padhao scheme on January 22, 2015 after considering the poor condition of girl children in India. It is a savings scheme for the families of girl children.
This scheme is derived to inspire the guardians/parents to build up their funds in Sukanya Samriddhi Yojana from the birth of girl child for her marriage and education. It is an innovative scheme which ensures financial security for every girl child in Indian households. It also plays a vital role in ensuring their financial freedom. This scheme clearly justifies the popular saying “Boond Boond se ghada bharta hai”. Parents are now relieved that they can, at least, save some amount of money for the future of their girl child as per their convenience. So, they will have decent sum of money by the time of her higher education or marriage so they can give a good future to her. These schemes has benefitted over 76 lakh families in India and over Rs. 3000 Cr. of accounts have been opened.
Only legal guardian/parent of only one or two female children can open a Sukanya Samriddhi account. One can present a medical certificate from an authorized healthcare center in case of twins or triplets for exemption. This account can only be opened if a girl child is around her birth to 10 years old.
- Sukanya Samriddhi Yojana account can only be opened for a girl child who is an Indian resident. This scheme is not available for a girl child who has non-resident status. Even if the legal guardians or parents are non-residents, this scheme is not applicable for them. In case a girl child becomes non-resident after opening this account, it is mandatory to inform the concerned bank or post office about this change within 1 month so accounts can get closed.
- Sukanya Samriddhi Yojana accounts should always be opened for a girl child in her name, not the name of her legal guardians or parents. They will just be able to deposit amount on behalf of her on her account.
- How many accounts? – A legal guardian/single parent can open only one account for a girl child in their family. Only one or two accounts can be opened in a family.
- Transferability – On giving certain documents, one can transfer the Sukanya Samriddhi Yojana account from one post office to another, one bank to another, from bank to post office or vice versa.
- Penalty – In failure of fulfilling minimum deposit requirements, Rs. 50 will be charged as fine.
- Interest rate – This account is currently opened with 8.1% as rate of interest for 2018-19. It is compounded on annual basis.
- Maximum Duration to deposit amount – A parent/legal guardian should deposit an amount in this account for at least 14 years, which is the maximum duration. After the end of 14 years, they no longer need to deposit money to this account and it will constantly sum up interest until it is closed or matured.
- Closing account – Once this account achieves maturity, it can get closed after finishing the 21 years of tenure. In this account, the money deposited along with interest is paid to the girl once she turns 18 years old and on submission of application for closing account with identity and address proof, citizenship, and proof of residence.
- Taxation – The total amount of maturity and interest on this account earned is completely exempted from tax according to section 80C, Income Tax Act 1961, and also Exempt-Exempt-Exempt (EEE) regime. As of now, the deposit of up to Rs. 1.5 Lakh is free of tax.
- Tenure – The Sukanya Samriddhi Yojana savings account remains active for 21 years from the date of opening. Post tenure period, the account stops earning any interest.
You can open this account in any authorized banks like Bank of Baroda, State Bank of India, Bank of India, Punjab National Bank, Andhra Bank, Canara Bank, Allahabad Bank and UCO Bank, and any authorized post office brances.
Sukanya Samriddhi Yojana is one of the most widely known small saving schemes for a girl child and many people are searching the web and various sources to know how to open an account and where to find Sukanya Samriddhi Yojana application form. You may get the application form from any bank or post office where your account is opened. Once the form is filled, be sure to double check the form with concerned official. Always ask the knowledgeable person before submitting. It is better than opening an account with mistakes.
How to open?
To get the benefits of Sukanya Samriddhi Yojana scheme, you need to submit certain documents, such as –
- Birth certificate of your girl child
- Identity proof and address of depositor (legal guardians or parents), such as PAN card, AADHAR card, Passport, Driving License, or Ration Card
- If you have twins or triplets, you need to show a medical certificate which verifies the order of birth of these children.
- A certificate which states your relationship with girl child. If this account is opened by biological parents, you need to submit the birth certificate. It is very important also in case of adopted child.
- Amount of Deposits – One can open Sukanya Samriddhi Yojana savings account with Rs. 250 for each, which is a minimum deposit. Each account has maximum limit of deposit, which is set at Rs. 1.50 Lakh. Well, numbers of monthly or annual deposits have no limit.
- Mode of Payment – The payment can be made through demand draft or cheque drafted in the name of –
- Concerned Bank Manager – For Financial Institutions/Banks
- Concerned Postmaster – For post office
- The guardian or parent should write the name of girl child and account number on the back of draft or cheque when depositing the amount.
In order to promote investments in Sukanya Samriddhi Yojana, there are certain tax benefits offered in Sukanya Samriddhi accounts –
- Investments in Sukanya Samriddhi Yojana are eligible for exemption under Section 80C, with maximum limit of Rs. 1.5 Lakhs.
- Interest accrued in this account which is compounded every year is also exempted from tax.
- The amounts received on withdrawal/maturity are also exempt from tax.
Here are certain terms related to Sukanya Samriddhi Yojana account you should know –
- Depositor – This term refers to a person who deposits money in account of a girl child, on her behalf, under the rules.
- Post Office – This term means a post office in the country which is serving as a savings bank and is authorized to open Sukanya Samriddhi Yojana accounts as per the rules.
- Guardian – A guardian is a person who is either the mother or father of a girl child or someone who is entitled legally as a caretaker of property of minor until she turns 18 years old.
- Bank – It refers to a branch of an authorized bank by central government to open SSY accounts as per the rules.