Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana is a scheme for a girl child, introduced by the Government of India mainly for the girl child. It is a part of the 'Beti-Bachao'-'Beti Padhao' initiative of Government of India. This scheme enables parents to build a corpus for the education and marriage of the girl child.

Under this scheme, the parent or a legal guardian can open an account in the name of the girl child. The account can be opened in a post office or in designated banks. 

Income tax benefit under Section 80C up to 1.50 Lakhs is available under this scheme. The rate of interest offered on this account is much higher compared to the other small savings scheme.

The SBI Sukanya Samriddhi Yojana Account can be opened by a parent or a natural guardian of the girl child. A parent or a natural guardian can open the account for a maximum of two girl children. In the case of twins, an account can be opened for a third girl child if the girl child is born as a result of the second pregnancy. In the case of triplets as a result of the first pregnancy, the account can be opened for three girl children.

• The minimum deposit in SBI Sukanya Samriddhi Yojana account is 1,000
• There is no limit on the number of deposits to the account but should not exceed a sum of 1.50 Lakhs per account in a financial year.
• The rate of interest offered for an SBI Sukanya Samriddhi Yojana account is 8.60% on a yearly basis.
• Income tax rebate under Section 80C of the Income Tax Act 1961 is available for an annual deposit of 1.50 Lakhs under the scheme. Triple tax benefit in the form of exemption on the amount invested, interest earned, and the amount withdrawn has been provided for this scheme in the latest Finance Bill.
• Deposits can be made to the account for a maximum period of 15 years from the date of opening the account.
• The maximum tenure of the account is 21 years from the date of opening the account
• In case of a severe medical emergency, the premature closure of the account is permitted on authorisation by an order by the Central Government. Premature closure of the account is also permitted in the event of the death of a depositor.
• In case of irregular payments, the account can be revived on payment of a penalty of 50 along with the minimum amount of deposit stipulated for a financial year.
• Deposits to the account can be made by way of cash, cheque, and online transfer or by giving standing instruction (SI) at the branch for automatic credit to Sukanya Samriddhi Yojana Account.
• For the higher education or marriage of the child after the child attains an age of 18 years is permitted up to 50% of the balance in the account during the previous financial year.

You have to follow the below-mentioned simple steps to open an SBI Sukanya Samriddhi Yojana Account:

• Fill the application form for Sukanya Samriddhi Yojana Account
• Submit the relevant documents along with the photographs
• Any amount can be deposited into the account ranging from 1,000 to 1.50 Lakhs on opening the account.
• For further deposits into the account, a standing instruction for automatic credit to the Sukanya Samriddhi Yojana Account can be given at the branch or can even be created online.

Opening Sukanya Samriddhi Yojana Account with SBI

Opening of SBI Sukanya Samriddhi Yojana Account is simple and hassle-free. Even individuals who don't have an account with SBI can open SBI Sukanya Samriddhi Yojana Account by submitting the required documents.

Follow the three simple steps mentioned below to open SBI Sukanya Samriddhi Yojana Account:

• You will have to fill up the relevant form for opening the SBI Sukanya Samriddhi Yojana Account
• Then submit the required documents along with the photographs
• Deposit the minimum required amount of 1,000 by way of cash
• After opening the account deposits into the account can be made by way of cash, demand draft, or a cheque. Standing instructions can be given at the branch for automatic credit to Sukanya Samriddhi Yojana Account.

The maximum number of accounts that can be opened under the Sukanya Samriddhi Yojana Account is for two girl children. Three accounts can be opened in case of twins as a result of the first pregnancy and another girl as a result of the second pregnancy. It is also permitted in case of triplets as a result of the first pregnancy.

Opening of Sukanya Samriddhi Yojana Account in Post Office

The following is the procedure to open a Sukanya Samriddhi Yojana Account in Post Office:

• The parent who wishes to open a Sukanya Samriddhi Yojana Account in Post Office has to download the application from the official website of The Reserve Bank of India.
• The applicant has to fill up the application with the relevant information
• The applicant has to submit the completed application along with the prescribed documents, i.e., Voter's ID card, Driving Licence, Aadhaar Card, Birth Certificate of the child and photograph of self (the parent) and the child at the Post Office.

The following documents are required to open the Sukanya Samriddhi Yojana Account:

• Birth Certificate of the child
• Duly filled application for opening Sukanya Samriddhi Yojana Account
• Proof of Residential Address of the parent/natural guardian, like Utility Bills of at least 3 months, Driving Licence, Passport, Property Tax Receipt (any one) should be submitted.
• Photo ID Proof of the parent/natural guardian, like PAN Card, Voter' ID, Driving Licence (any one) has to be submitted.
• Aadhaar Card
• Photographs of the parent/natural guardian and the child have to be submitted

The following are the benefits of SBI Sukanya Samriddhi Yojana Account:

• The rate of interest offered on SBI Sukanya Samriddhi Yojana Account is 8.60% which is much higher than the rates offered on any other small savings scheme. The interest will be paid on a yearly basis.
• The amount in the account cannot be withdrawn before the maturity of the account, i.e., before 21 years from the date of opening the account. The amount in the account can be withdrawn for the marriage of the girl child. The maturity stipulated is either of the two whichever is earlier.
• An amount up to 50% of the balance in the account during the previous financial year is allowed to be withdrawn for the purpose of higher education or marriage after the child attains an age of 18 years.
• Premature closure of the account is allowed in the event of the death of the depositor or in case of extreme medical emergencies authorised by an order by the Central Government.
• On maturity of the account, the entire proceeds of the account which includes the accrued interest will be credited into the depositor's account, i.e., the girl child. This scheme is specially designed to provide economic independence to the girl child.
• The account can be continued even after the maturity date. The best advantage in this account is that the interest will be paid even after the maturity of the account until the actual closure of the account.
• The lock-in period gives the advantage of building a corpus for your girl child for her higher education or marriage.
• Income tax rebate under Section 80C of the Income Tax Act 1961 is available for an annual deposit of 1.50 Lakhs under the scheme. In the latest Finance Bill, the scheme is extended with triple exemption benefits, i.e., there will be no tax levied on the amount invested, the amount earned as interest and, the amount withdrawn.

Sukanya Samriddhi Yojana Interest Rate is very attractive and is 7.60% p.a. (w.e.f 01.04.2020) currently. As notified by the Government of India, the interest on the scheme is compounded annually with option for monthly interest pay-outs calculated on balance in completed thousands.

A natural or legal guardian on behalf of a girl child can invest minimum Rs. 250 and maximum up to Rs. 1,50,000 in one financial year. The tenure of the deposit is 21 years from the account opening date.  The investment can be made for up to 2 girl children (up to 3 in case of twin girls as second birth or if the first birth itself results in three girl children).

Under Section 80C of the Income Tax Act, the scheme is extended triple exempt benefits i.e. no tax will be charged on the amount invested, quantum earned as interest, and the amount withdrawn. If the minimum amount of Rs. 250 is not deposited in a particular financial year, a penalty of Rs. 50 will be charged.