Sukanya Samridhi Yojana also known as sukanya samridhi account scheme, 2019 is an initiative of the Ministry of Finance under the Central Government for the minor girl child.
The scheme promotes the welfare of girl child. It is basically a minor account with a monthly savings option. You may find it to be similar to traditional recurring deposits.
The account matures in 21 years from the date of opening the account or on the marriage of the account holder whichever is earlier. From time to time, the rate of interest changes just like the public provident fund. The effective rate of interest is notified by the Government.
The interest rate is compounded annually and is credited to the account every March. The prevailing rate of interest is 7.6 per cent per annum for the year 2022-23. Transferring of account is easy, as you can transfer it anywhere from one post office or bank to another.
The balance amount as well as the accrued interest is totally exempted from tax as per section 80C of the Income Tax Act, 1961. So, if you are looking for a deposit with tax benefits, SSA is one of the viable options you can rely on.
What Is Sukanya Samridhi Yojana?
Sukanya Samridhi Yojana is a deposit scheme of the Government of India launched on the 12th of December 2019.
Also, read about Public Provident Fund Account.
It is a savings deposit account just like a traditional public provident fund or a recurring deposit account of banks and the India Post Office. The account is only meant for a girl child who is below the age of 10 years.
How To Open It?
Account has to open jointly with the natural or legal guardian. The main account holder-Primary will be the minor girl child. Guardian will operate the account on behalf of a girl child. Only one account can be opened in the name of a girl child.
Sukanya Samridhi account can be opened in Post Office and authorized banks. State Bank of India, HDFC Bank, Axis Bank, ICICI Bank, and Canara Bank are some of the popular banks that give the service.
Eligibility.
Sukanya Samridhi account can be opened by a guardian who has a girl child below the age of 10 years. In a family maximum of two girl children or three in the case of twins if the second or first birth is a girl child.
Required Documents.
To open this account, you have to produce the following documents.
| 1 | Birth certificate of a girl child in whose name account will be opened. |
| 2 | OVD (Officially valid documents) of natural or legal guardian. |
| 3 | OVDs are documents acceptable at a bank or post office under the RBI’s KYC (Know your customer) guidelines. |
| 4 | OVDs may be Passport, Voter Card, Adhaar Card, Driving License, NREGA Job Card and letter issued by the National Population Registrar |
| 5 | A PAN card of the guardian is mandatory. |
Benefits of Sukanya Samridhi Account.
| 1 | SSA is a government-backed deposit scheme, which means the amount that you invest here is completely safe and secure. |
| 2 | A great plan for a Girl Minor Child. Since the deposit period is long-term, a good capital appreciation is expected with its compounding interest calculation. |
| 3 | Investment in this plan is beneficial as Tax is exempted from you can declare tax exemption under Sec 80 C of the Income Tax Act. Moreover, the interest that you earn in this account is free from any tax. |
| 4 | The accumulated funds can be used for further studies of the minor girl child. Under the emergency requirement of life-threatening disease, up to 50 per cent of the accumulated fund can be used for medical treatment. |
| 5 | Attractive interest rate same as that of the PPF account. |
How to withdraw funds?
This account is strictly under the supervision of the Ministry of Finance. One can withdraw only once upon attaining the age of 18 years of the account holder to meet the expenses of further education. The eligible amount for withdrawal is limited to 50% of the balance at the credit of the preceding financial year.
Otherwise, under normal circumstances, the account is matured when the minor girl child attains the age of 21 years or upon her married whichever is earlier.
Subscription Amount of Deposit.
This account can be opened with a minimum amount of ₹ 250/- and thereafter in multiple of ₹ 100/- can be deposited. Annually the number of transactions allowed is 12. A minimum of ₹ 250/- and a maximum of ₹ 2 lakhs can be deposited in a financial year. This account can be deposited for a maximum period of 15 years from the account opening date.
The penalty for irregular payment.
In the sukanya samridhi account, there should be at one deposit made in a financial year with a minimum amount of ₹ 250/- else the account will be treated as irregular. No need to worry in case it happens to you. It can be revived by payment of a penalty of ₹ 50/- per year along with the minimum specified amount per year.
For more details please visit the website of the National Saving Institute of the government of India.