The Sukanya Samriddhi Account has a minimum annual contribution of Rs 250 and an overall contribution limit of Rs 1.5 lakh every fiscal year
New Delhi: Sukanya Samriddhi Yojana (SSY) is a government-sponsored small savings scheme designed for girl children. It was launched in 2015 as part of the Government initiative Beti Bachao, Beti Padhao campaign and can only be opened by the parents of a girl child under the age of ten at the concerned post office and banks. Sukanya Samriddhi Account is valid for 21 years, or until the girl child reaches the age of 18.
Sukanya Samriddhi Account Eligibility:
- The account can be opened by the natural or legal guardian for a girl child of age below 10 years.
- A depositor can open and operate only one account in the name of a girl child under the scheme rules.
- Natural or legal guardian of a girl child are allowed to open the account for two girl children only.
- A family is only approved for two SSY accounts, one for each girl child in case of twins/triplets girls.
Sukanya Samriddhi Yojana interest rate 2021:
The government declares the interest rate of SSY on a quarterly basis. Currently, for Q1 (April-June) FY 2021-22, it offers a high interest rate of 7.6%.
Sukanya Samriddhi Account features:
- Minimum Rs 250 can be invested in one financial year
- Maximum investment of Rs 1.5 lakh can be made in one financial year
- If the minimum amount is not deposited in any financial year, a penalty of Rs 50 will be charged
- Deposits in an account can be made till completion of 14 years, from the date of opening of the account
- The account shall mature on completion of 21 years from the date of opening of the account, provided that where the marriage of the account holder takes place before completion of such period of 21 years, the operation of the account shall not be permitted beyond the date of her marriage
- SSY Account deposit limit and tenure: The Sukanya Samriddhi Account has a minimum annual contribution of Rs 250 and an overall contribution limit of Rs 1.5 lakh every fiscal year. From the date of account opening, you must contribute at least the minimum amount per year for up to 15 years. SSY has a maturity period until the girl child reaches the age of 21 or until she marries after reaching the age of 18. If an account holder fails to make the minimum deposit of Rs 250 in a fiscal year then his or her SSY account is classified as a “Defaulted Account.”
This account can be reopened before the 15-year period of its opening by contributing a minimum of Rs 250 plus Rs 50 for each defaulted year. After the age of 18, a girl child can manage her own account. After submitting the required documents to the concerned post office or bank where the account is maintained, she will be eligible to operate the SSY until she reaches the age of eighteen.
SSY premature closure:
In the event of the account holder’s death, the account can only be closed prematurely after 5 years. As a result, the PO Savings Account interest rate will apply from the date of death to the date of payment. Premature account closure is also possible in very critical conditions such as the account holder’s serious illness or the death of the guardian who managed the account.
In order to close the account, one must submit a specified application form, as well as a passbook and other documents, to the authorized Post Office or bank.
SSY withdrawal rules:
After a girl child reaches the age of 18 or has completed the 10th standard, she can withdraw money from the SSY account. The account holder is allowed to withdraw up to 50% of the available balance at the preceding fiscal year for marriage or higher education of the girl child. Withdrawals can be made in one lump sum or in installments of up to once a year for a period of five years, according to the prescribed limit and actual fee/other charge conditions.
SSY tax benefits:
Apart from high interest rate, tax benefit is another one of the main advantages of this scheme. Deposits in SSY are classified as EEE (Exempt, Exempt, Exempt) status. This ensures that the investment principal, interest gained, and maturity proceeds are non-taxable. The tax-deductible benefit on the principal amount invested under Section 80C of the Income Tax Act, 1961 is up to Rs 1.5 lakh per year under the current taxation laws.
It is worth adding that Sukanya Samriddhi Yojana Account can be conveniently transferred from one bank or post office to another. You can easily transfer this small savings scheme from one post office or bank to the other. For the same, you need to fill out the application form and submit it along with the required documents at the concerned post or bank.
