Sukanya Samriddhi Yojana (SSY) is a flagship scheme by Government of India for the girl child. Under this scheme anyone can open a savings account for their girl child that gives a good rate of interest / returns and the income is tax free. The scheme is really useful and can help create a corpus for the girl child for their higher education / wedding / any other major expense.
Here is what you need to know about this scheme:
1. Parents / guardians of girl child can open this account linked to their own account or through Post Office.
2. Age eligibility for Sukanya Samriddhi Yojana - The SSY account can only be opened for girl child below 10 years of age.
3. Under one guardian a maximum of 2 SSY accounts can be opened / availed.The exception to this rule is birth of twins.
4. Banks in which SSY scheme is offered is below. Apart from the below banks, SSY account can also be opened in Post Office.
- Allahabad Bank
- Andhra Bank
- Axis Bank Limited
- BoB – Bank of Baroda
- BoI – Bank of India
- Bank of Maharashtra
- Canara Bank
- CBI – Central Bank of India
- Corporation Bank
- Dena Bank Limited
- HDFC Bank
- ICICI Bank Limited
- IDBI Bank Limited
- Indian Bank
- IOB – Indian Overseas Bank
- OBC – Oriental Bank of Commerce
- P&SB – Punjab & Sind Bank
- PNB – Punjab National Bank
- SBBJ – State Bank of Bikaner and Jaipur
- SBI – State Bank of India
- SBH – State Bank of Hyderabad
- SBM – State Bank of Mysore
- SBP – State Bank of Patiala
- SBT – State Bank of Travancore
- Syndicate Bank
- UCO Bank
- Union Bank of India
- United Bank of India
- Vijaya Bank
5. Documents required for Opening the SSY account:
- KYC documents of the guardian - PAN, Aadhaar
- Photograph of guardian
- Birth certificate of the minor/girl child for whom you want to open the SSY account
- The photograph and Aadhar no. of the SSY beneficiary while need not be provided immediately on opening the account, needs to be updated in the account within 6 months of opening the same.
6. Rate of Interest given on the saving : the Rate of interest accrued on the savings in this account can change every quarter. The Rate of interest for SSY is announced by GOI every quarter. So far the Rate of interest for Sukanya Samriddhi Yojana has varied from 7.9% to 9%. However, the key thing to note her is that the income generated in this scheme is completely tax exempt. Which effectively increases the rate of return here by another 2.5-3%
7. Investment amount limit - Once an SSY account is opened, a minimum of 1000 Rs. needs to be put into this account every year. The maximum amount allowed is Rs. 1.5 L per beneficiary per year.
8. tax Benefit of SSY - Probably the most important aspect of this scheme. Both the amount invested and the interest are tax exempted under section 80C.
9. Maturity of Account / Withdrawal - The account / scheme matures when the girl reaches 21 years of age. After this, full amount can be withdrawn.However, the scheme also allows for partial withdrawal of the money. Once a girl reaches 18 years of age, she can withdraw 50% of the amount maturity, for the purpose of higher education or marriage.
10. Investment period - Investment can be made for 14 years period.
11. What if deposit is not made in any particular year: Your account will lapse. And for revival of the account, you will have to pay a small penalty of Rs.50.