Exploring the Benefits of Sukanya Samriddhi Yojana Scheme

Introduction

Sukanya Samriddhi Yojana is a popular government-backed savings scheme in India, specifically designed for the girl child. Launched as part of the Beti Bachao Beti Padhao campaign, this scheme aims to promote the welfare of the girl child and ensure their financial security. The scheme offers a handsome interest rate, along with tax benefits, making it an attractive option for parents looking to secure their daughter’s future.

How does Sukanya Samriddhi Yojana work?

The scheme can be availed for a girl child below the age of 10 years. Parents or legal guardians can open an account in the name of the girl child, with a minimum deposit of Rs. 250 and a maximum of Rs. 1.5 lakh in a financial year. The account matures after 21 years from the date of opening or when the girl gets married after the age of 18.

Benefits of Sukanya Samriddhi Yojana

1. High Interest Rates: Sukanya Samriddhi Yojana offers one of the highest interest rates among small savings schemes. The interest rate is updated every quarter by the government and is currently at 7.6% per annum (as of July 2021).

2. Tax Exemption: Contributions made towards Sukanya Samriddhi Yojana are eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum of Rs. 1.5 lakh in a financial year. Additionally, the maturity amount and interest earned are fully exempt from tax.

3. Long-term Savings: This scheme not only helps in accumulating savings for the girl child but also inculcates a habit of long-term financial planning from an early age.

4. Flexible Deposit Options: Parents can choose to deposit funds monthly, quarterly, or annually as per their convenience. The minimum deposit amount is Rs. 250, making it affordable for all income groups.

5. Partial Withdrawal: In case of financial emergencies or higher education needs, partial withdrawal of up to 50% of the balance at the end of the preceding financial year is allowed after the account holder reaches the age of 18.

6. Account Transfer: In case of relocation, the account can be transferred anywhere in India without hassles, ensuring continued benefits for the girl child.

7. No Hidden Charges: Sukanya Samriddhi Yojana is free from account opening charges and maintenance fees, making it a cost-effective savings option.

8. Compound Interest: The power of compounding plays a significant role in growing the savings corpus over the long term, thanks to the quarterly compounding of interest in this scheme.

9. Financial Security: By investing in this scheme, parents can secure the future of their daughter and provide financial support for important life events like education, marriage, or entrepreneurial ventures.

How to Open a Sukanya Samriddhi Yojana Account?

Opening a Sukanya Samriddhi Yojana account is a simple and straightforward process. Here are the steps involved:

1. Visit a designated bank or post office that offers Sukanya Samriddhi Yojana accounts.
2. Fill out the account opening form with accurate details of the girl child and parent/guardian.
3. Submit the necessary documents such as the girl’s birth certificate, address proof, and identity proof of the parent/guardian.
4. Make the initial deposit amount (minimum of Rs. 250) to activate the account.
5. Once the account is opened, regular deposits can be made through cash, cheque, or online transfers.

FAQs (Frequently Asked Questions)

1. Can I open multiple Sukanya Samriddhi Yojana accounts for different daughters?
No, a parent or guardian can open only one account for a single girl child and a maximum of two accounts for two different daughters.

2. What happens if the minimum deposit requirement is not met in a financial year?
If the minimum deposit of Rs. 250 is not made in a financial year, the account is considered inactive. A penalty of Rs. 50 needs to be paid to reactivate the account.

3. Is premature closure of the account allowed?
Premature closure of the account is allowed in certain cases such as the unfortunate demise of the account holder. However, a penalty is levied, and the interest rate payable is reduced by 1%.

4. Can NRIs (Non-Resident Indians) avail of Sukanya Samriddhi Yojana for their daughters?
No, NRIs are not eligible to open a Sukanya Samriddhi Yojana account. The scheme is exclusively available for Indian residents.

5. Can I continue making deposits into the account after the 15-year period?
No, deposits need to be made for a maximum of 15 years from the date of opening the account. However, the account will continue to earn interest until maturity.

6. Can I transfer the account from a post office to a bank or vice versa?
Yes, the account can be transferred from a post office to a bank and vice versa without any charges. A transfer request form needs to be submitted along with relevant documents.

7. Is the interest rate fixed for the entire tenure of the scheme?
No, the interest rate is subject to quarterly revisions by the government based on prevailing market conditions. The rate applicable at the time of account opening remains fixed for the entire year.

8. Can I avail a loan against the Sukanya Samriddhi Yojana account?
No, loans cannot be availed against the balance in a Sukanya Samriddhi Yojana account. The funds are meant to be utilized for the welfare and future expenses of the girl child.

9. Is there an age limit for the girl child to withdraw the accumulated amount?
The girl child can withdraw the accumulated amount after attaining the age of 18 for higher education or marriage purposes, and the account matures after 21 years from the date of opening.

10. What happens if the girl gets married before the maturity period of the account?
In the case of marriage of the girl before the maturity period of the account, the account can be closed, and the entire amount is paid out. It is advisable to provide documentary evidence of the marriage for closure.