SUKANYA SAMRIDDHI ACCOUNT - Beti Bachao Beti Padhao – Girl Child Plan

Highlights of Sukanya Samriddhi Yojana (SSY) :

1. Who can open Account: Any parent or legal guardian can open an account under girl child’s name
2. How much money can be deposited: Minimum of Rs 1000/- and maximum of Rs 1,50,000 can be deposited per year
3. Interest earned and Tax benefits: Interest rate is 9.2% for current year, and it will vary from year to year as Government decides Investment is exempted for Income tax under Sec 80C, upto Rs 1.5 lacs, and the interest earned and maturity value is also tax free
4. Lock in Period & Premature Withdrawal: Lock in period is 21 years from the date of opening an account or till the girl child’s marriage which one is earlier. However one time 50% withdrawal is allowed after the girl child attains the age of 18 years for higher education of the girl child.

Detailed Features of Sukanya Samriddhi Yojana (SSY) :

1. Who can open Account: Account can be opened by Parents or Legal Guardian of Girl child
2. Only one Account for One girl: Maximum two accounts can be opened for two girl children only. One account can be opened for one girl child; If the two girl children are twins then it can be open for three girl child.
3. Age Restriction: Account can be opened up to 10 years of age of Girl child only.
4. Benefits of the Scheme & Deposit Amount: Minimum of Rs 1000/- or maximum of Rs 1.5 lac can be deposited in multiples of Rs 100 in one financial year. Interest will be compounded annually and will be declared by Government every year. Interest rate for current year is 9.2% and Interest rate is linked with Yield of Government 10 year bond 75 basis points higher
5. Lock in Period & Premature Withdrawal: Deposits can be made up to 14 years from the date of opening of the account and the lock in period is 21 years from the date of opening the account or till the girl child’s marriage whichever is earlier. One time 50% premature withdrawal is permitted for higher education of girl child only after attaining the age of 18 years of the girl child. After 14 years of account opening no amount has to be deposited till 21 years and also account cannot be operated after the girl child’s marriage.

In case of death of girl child account can be closed immediately after producing the death certificate. The amount in the account will be transferred to the parents account.

6. Tax Benefit: Amount deposited is fully tax free and under Section 80C upto Rs 1.5 lacs limit. Which also includes other deductions under Sec 80C. Maturity amount and interest earned is also tax free

7. Documents required to open Sukanya Samriddhi Yojana Account: SSY account can be opened at any commercial bank or post office by paying cheque, cash or demand draft. Following documents are required:

1. Birth Certificate o the Girl Child
2. Address Proof of the Parent/ Legal Guardian
3. Identity Proof of the Parent/ Legal Guardian

8. Irregular Account: Irregular account can be regularized by paying penalty of Rs 50/- for each defaulting year, in which no money or amount less than Rs 1000/- has been deposited. Along with the penalty you also need to pay the minimum of Ra 1000/- for each year of defaulting. Account can be regularized anytime till the completion of 14 years.

9. Operation of Account and Transferability: Account can be operated by Guardian till the girl child attains the age of 10 years. After which both the girl child and parent can operate the account. Account is transferable to any place in India.

10. Passbook: Passbook is issued bearing the name of the Girl child, Date of birth, Date of opening of the account, and the amount deposited.