On 22 January 2015, the Prime Minister Narendra Modi launched a special deposit scheme known as the Sukanya Samriddhi Yojana. Under this scheme, the natural or legal guardian of a girl child can open an account in her name and avail certain benefits.
The objective of the scheme is to alleviate the worries of Indian parents about the marriage and education expenses of their daughters.
The Sukanya Samridhi Yojana is basically a girl child prosperity scheme which was launched as part of the -‘Beti Bachao-Beti Padhao‘ campaign. This is an effort to motivate parents to open an account in the name of a girl child.
This article ‘Sukanya Samridhi Yojana Details’ explains all the relevant features related to this scheme.
What is Sukanya Samridhi account?
- It is a savings account that can be opened by the natural or legal guardian of a girl child in her name.
- This account can be opened at any time from the birth of the girl child till she attains the age of 10 years.
- A depositor can open and operate only one account in the name of a girl child under the scheme rules. In other words, one account per girl child.
- The maximum number of accounts that can be opened by parents/ legal guardian is two. Three accounts can be opened only in the case of twin girls in either the first birth or the second birth. In other words, the scheme is applicable only for the first two girl children. The parents can’t open an account for the third girl child.
How to open the account?
- Sukanya Samridhi account can be opened in a post office or an authorised bank.
- The parents/ legal guardian will have to submit the child’s birth certificate along with other documents such as identity and residence proof.
- They can deposit money in cash, by cheque or through demand draft.
- Till the girl child turns 10, the parents/ legal guardian will be able to open and operate the account. After that, she can operate it herself.
- On opening an account, a passbook will be given, which has to be presented to the post office or bank at the time of both depositing money in the account and receiving payment of interest.
- At the time of finally closing the account on maturity, the passbook will be required.
What is the minimum and maximum amount of deposit under Sukanya Samridhi Yojana?
- Minimum Rs. 1,000 can be invested in one financial year.
- Maximum investment of Rs. 1,50,000 can be made in one financial year.
What is the tenure of the deposit?
Deposits in an account can be made till completion of 15 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.
What is the interest rate on the deposit?
- The interest on deposit shall be compounded yearly at the rate notified by the Government in the Official Gazette from time to time and shall be credited, rounded off to the nearest rupee, to the account of the beneficiary at the end of each financial year.
- The interest shall be calculated for the calendar month on the lowest balance in the account on the deposits made between the close of the tenth day and the end of the month. In other words, if you deposit money after 10th, interest will not be calculated on it.
| Serial Number | Financial Year | Date Range | Interest Rate | Minimum Investment | Maximum Investment |
|---|---|---|---|---|---|
| 1 | 2014-15 | 1 April 2014 to 31 March 2015 | 9.1% | ₹1,000 | ₹150,000 |
| 2 | 2015-16 | 1 April 2015 to 31 March 2016 | 9.2% | ₹1,000 | ₹150,000 |
| 3 | 2016-17 | 1 April 2016 to 31 March 2017 | 8.6% | ₹1,000 | ₹150,000 |
What are the benefits under the Sukanya Samridhi Account?
- Tax Exemption
Investment in Sukanya Samridhi Yojana scheme is exempted from Income Tax under section 80C. The scheme offers tax Benefit under Triple E regimen ie. principal, interest and outflow all are tax exempted. - Withdrawal Facility
To meet the financial requirements of the account holder for the purpose of higher education and marriage, the account holder can withdraw 50% of the money after attaining 18 years of age.
These benefits will be reassessed annually.
Conclusion
This account is specially meant for a girl child and comes under small savings scheme. It is a very attractive scheme as Sukanya Samridhi account carries the highest tax-free return with sovereign guarantee.
Overall it seems to be a great initiative by the Indian government to address the need of women and promoting gender equality.
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