Sukanya Samriddhi Yojana Account: Saving Scheme For Girl Child

Sukanya samriddhi Yojana Account

Literally, Girl Child Prosperity Account or Sukanya Samriddhi Yojana is a savings scheme introduced by the Government of India for the parents of a girl child. The scheme helps the parents to save money for the future use like education and marriage expenses for their girl child. This sterling investment scheme is under the Beti Bachao, Beti Padhao campaign.

Prime minister Narendra Modi launched this scheme on 22nd January 2015. This scheme has been slashed by 0.1% on 2016-17 for the October-December quarter.The account can be opened in any Indian branch of commercial banks like Axis bank or post office. You can also pay your premium via Axis bank credit card, Debit card or cash. The interest rate for the financial year 2016-2017 is 8.5%.

Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana; Eligibility and other norms

According to the Sukanya Samridhi Yojana, the account holder must have the below eligibility and follow the norms.

  • Parents with a girl child are eligible.
  • The girl must be an Indian Citizen.
  • The account can be opened only at the age of 10 or more.
  • One account is permitted per girl child.
  • The Sukanya Samriddhi account can be transferred to anywhere in India.
  • Annually an amount of 1000 in INR must be deposited.
  • Maximum one can deposit annually is Rs. 150,000.
  • No limit on the number of deposit in a month or in a year.
  • If the minimum deposit is not paid per year than an amount of Rs. 50 will be restored.
  • At the age of 18, the girl can withdraw 50% of the money from the account for higher education.
  • If after 21 years of account opening the account is not closed then the account will continue to earn interest at prevailing rate.
  • The normal closure is allowed if the girl is 18 and married.

Sukanya Samriddhi Yojana Closure Norms on Maturity:

  • The account holder has to close the account after 21 years of the account opening. If not then the normal interest rate will be given considering it as a savings account.
  • Premature closing is granted in case the girl is married or has attained 18 age of years on the date of marriage.
  • The matured money along with the interest will be handed over to the account holder on submission of her identity, residence and citizen’s proof.

Sukanya Samriddhi Scheme

Sukanya Samridhi Yojana Account Transfer Rules:

  • The account can be transferred to any account in India.
  • The account holder can transfer the account from any post office to an Indian branch of a commercial bank or from bank to bank or from post office to another post office.
  • While transferring the account holder need to submit documents regarding the shifting of the residence.
  • The transfer can be done free of cost. Or one can pay 100 rupees without furnishing document and get it transferred where ever she wants.
  • It can also be transferred electronically from one bank to other if the account holder has access to the facility of CBS.

Sukanya Samriddhi Yojana, scheme for girl child  launched by prime minister of India Narendra Modi on 22, January, 2015 under the part of “Beti Bachao Beti Padhao” campaign vide government of India notification No. G.S.R.863(E) dated 02,December,2014 and circulated to banks by Reserve Bank of India vide letter No. RBI/2014-15/494/IDMD(DGBA).CCD/No-4052/2014-15 on dated 11.March,2015.  Sukanya Samriddhi yojana launch to promote welfare of girl child. It is small saving scheme for child upto age of 10 years. Sukanya Samriddhi yojana account can be open by parent of girl child or legal guardian of child.  Sukanya Samriddhi Yojana launched for financial security for girl child education and expenses on marriage.

Sukanya Samrridhi Yojana account can be open with deposit of minimum 1000 rupees and after any amount in multiple 100 rupees. Maximum 1.5 lacs rupees deposit allow during one financial year. Penalty of 50 rupees per year levied on account in case of fail to deposit of minimum amount in account in year.

Sukanya Samriddhi Yojana account open at any post-office or any authorised commercial bank branches. Deposit amount in SSY account upto 14 years from the date of opening of the account and tenure of account is 21 years from the date of opening of the account or marriage of account holder . From 14 years 21 years account earned only interest. Withdrawal of 50 percent amount possible for higher education of child after child terns the age of 18. Deposit in account can be made by cash/ cheque/ demand draft/ online transfer through internet banking.

Premature closure of account in case of death of depositor or any extreme life threatening illness authorised by order of government.

Interest Rate on Sukanya Samriddhi Yojana

Interest rate decided by government of India time to time and calculated on yearly basis and credited to account. Interest rate for small saving schemes are notified quarterly basis by government.

Following table shows interest rate for Sukanya Samriddhi Yojana since 2014:

For Financial Year 2014-15 9.1 %
For Financial Year 2015-16 9.2 %
From 01,April,2016 to 30,June,2016 8.6 %
From 01,July,2016 to 30,September,2016 8.6 %
From 01,October,2016 to 31,December,2016 8.6 %
From 01,January,2017 to 31,March,2017 8.5 %
From 01,April,2017 to 30,June,2017 8.4 %
From 01,July,2017 to 30,September,2017 8.3 %
From 01,October,2017 to 31,December,2017 8.3%
From 01,January,2018 to 31,March,2018 8.1 %

Only one account can be opened in name of girl under scheme of sukanya Samriddhi Yojana.Two account for one child is not allowed. Account can be opened for two child girls only. Third account for girl child can not be opened exceptional that twin girl child born at the first or second child birth.

Documents Required:

Birth certificate of girl child required to open account under scheme of Sukanya Samriddhi Yojana. Guardian or parent’s residence proof and identity proof are requires to open account under scheme.

Tax Benefits:

Amount deposit in account under exempted under section  80c. Sukanya Samriddhi Yojana offers triple tax advantages, i.e amount invested (principal), interest earned and withdrawn amount or maturity amount (all are tax exempted).

Key Features and Benefits of Sukanya Samriddhi Yojana:

  • High Interest Rate compare to other small saving schemes
  • Passbook and account statement available
  • Amount between minimum 1000 rupees and maximum 1.5 lacs rupees deposit by guardian or parents, amount can be deposit in multiple of 100 rupees
  • Interest earned on account will be tax exempted
  • Amount invested will be tax exempted under section 80C
  • Withdrawal of amount for higher education of child
  • Account is transferable anywhere in India
  • Girl child may operate her account after 10 years

Drawbacks of Sukanya Samriddhi Yojana :

  • Time frame duration of maturity is high compare to other schemes
  • Interest rate changes quarterly

Authorised list of banks for Sukanya Samriddhi Yojana:

  • State Bank of India
  • HDFC Bank
  • ICICI Bank
  • Axis Bank
  • Bank of Baroda
  • Bank of India
  • Allahabad Bank
  • Andhra Bank
  • Bank of Maharashtra
  • Canara Bank
  • Central Bank Of India
  • Corporation Bank
  • IDBI Bank
  • Indian Bank
  • Indian Overseas Bank
  • Dena Bank
  • Oriental Bank of commerce
  • Panjab & Sind Bank
  • Panjab National Bank
  • Vijaya Bank
  • United Bank Of India
  • Union Bank Of India
  • Uco Bank
  • Syndicate Bank

After launching Sukanya Samriddhi Yojana within 2 months, by the middle of march 2015, 1,80,000 accounts had been opened. Andhra Pradesh, Karnataka and Tamil Nadu continuously reported the highest number of account openings. The number of new accounts until October 2015 under this scheme was around 76, 19000 across India. And the amount deposited in this account for the female children was near about Rs. 28.38 billion. Certainly, the impact is a huge one. For more information and updates visit fsi.org.in regularly. if you have any query then write your query in the below comment box.

Frequent FAQs Sukanya Samriddhi Yojana 

  • Who can open Sukanya Samriddhi Account ?

A legal guardian or parents of girl child open account on behalf of girl.

  • What are the eligibility criterion for Sukanya Samriddhi Account ?

Account of girl child upto age of 10 year can be open.

Only one account can be open in the name of one girl, upto two girl account can be open under scheme of Sukanya Samriddhi Yojana.

Sukanya samriddhi account can be open for adopted child also.

  • What are documents requires to submit to open account?

Following documents requires to submit:

  • Sukanya Samriddhi account Application form
  • Birth Certificate of girl child
  • Address Proof of guardian/parents
  • Id proof of guardian/parents
  • What is the minimum and maximum amount can be deposit in account ?

Minimum amount 1000 rupees is required to deposit in sukanya samriddhi account, fail to do so account treated as discontinued account and after deposit 1000 rupees and 50 rupees per year account can be enable.

Maximum 1.5 lacs rupees per year can be deposit in sukanya samriddhi account.

Amount deposit under sukanya samriddhi account is exempted in income tax under section 80C.

  • What are the mode of deposit in sukanya samriddhi account?

Amount can be deposit by cash/cheque/Demand Draft.

SIP or lumpsum amount can be deposit in sukanya samriddhi account.

  • What is maturity period of account ?

Account matury period is 21 year from date of opening account or till marriage of child girl whichever is earlier.