Parents who want to save money for the future of their girl child can take advantage of Sukanya Samriddhi Yojana (SSY). A great convenience in saving in this scheme is that you can transfer your Sukanya Samriddhi Yojana account from one bank to another bank or post office depending on your choice and requirement. The scheme offers higher returns than most of the small savings schemes in the market and the government support makes it more reliable. Under this scheme any citizen can open an account for his daughter whose age is less than 10 years on the day of account opening. Once the girl child turns 18, she will become an account holder. The investment period in this is 15 years and the maturity period is 21 years. Only 2 accounts per family are allowed under this scheme, however more accounts can be opened in case of twins or triplets
Sukanya Samriddhi Yojana Deposit Rules
Sukanya Samriddhi Yojana account can be opened in any government bank or post office with an initial deposit of Rs.250. The depositor is required to deposit a minimum of Rs 250 annually, failing which a penalty of Rs 50 will be levied. An account that fails to maintain the annual minimum deposit limit becomes a defaulted account but can be normalized at any time before the last deposit period of years from the date of account opening. The defaulted account can be normalized by paying penalty for each year of default and depositing a minimum of Rs.250 for each year of default. If the account is not regularized within the specified period, the entire deposit made prior to the default year will be liable to interest as per the prevailing rate of interest. The upper limit for deposits in Sukanya Samriddhi Yojana account has been fixed at Rs 1.5 lakh per annum and deposits in excess of this limit will be returned to the depositor immediately.
interest rate and tax benefits
For the quarter ending September 2021, the amount deposited in Sukanya Samriddhi Yojana account will get interest at the rate of 7.6 percent per annum. The interest earned is credited to the account at the end of each financial year and is eligible for exemption under section 80C of the Income Tax Act, 1961.
premature closure
After 5 years of account opening, Sukanya Samriddhi Yojana account can be prematurely closed in case of critical illness of the account holder or death of the guardian managing the account on behalf of the girl child. In case of death, the PO Savings Account rate will be applicable from the date of death till the date of last payment.
For premature closure of account, application along with required documents has to be submitted to the bank or post office
withdrawal rules
Once the girl turns 18 or completes 10th standard, she is allowed to withdraw money from the account. A maximum of 50% of the amount available in the account at the end of the previous financial year can be withdrawn for the purpose of education or marriage of the account holder. Withdrawals can be made either in lump sum or once in a year in installments up to 5 years as per the applicable rules.
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