Sukanya Samriddhi Yojana, translated to “Girl Child Prosperity Account,” is a historical Govt scheme to support girl child’s education and marriage across India. Launched in 2015 by PM Modi at Harayana, Sukanya Samriddhi Yojana has been declared a massive hit among all society sections, right from Tamil Nadu to Jammu & Kashmir; Gujarat to Assam.
Within two months of its launch, more than 1.8 lakh bank accounts were opened under Sukanya Samriddhi Yojana. As of 2018, approximately one crore girl children have bank accounts opened in their name, and money is being deposited in their account, which will help them for their education and marriage.
This article will share more information about the saving scheme for a girl child and its interest rate along with scheme benefits. Also, you will know exactly what is the eligibility criteria and the documents required for Sukanya Samriddhi Yojana.
What is Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana is a unique Govt program launched in 2015 by PM Modi at Harayana, which has been created to benefit girl children and to create a solid saving account-based asset for their education and marriage. The biggest USPs of the Sukanya Samriddhi scheme are high-interest rates and income tax benefits.
Key highlights of the scheme:
- A special saving account under Sukanya Samriddhi Yojana can be opened for any girl child at any post office or authorized commercial bank.
- This bank account can be opened from the time of birth to 10 years of age.
- Only one account is allowed per child.
- A parent can open a maximum of 2 bank accounts in the family (twins, triplets exempted).
- The account can be transferred anywhere in India.
- With a minimum deposit of Rs 250, any parent of a gild child can open an account under Sukanya Samriddhi Yojana.
- After that, any amount can be deposited in multiples of 100.
- A maximum of Rs 1.5 lakh can be deposited into the account.
- A Minimum of Rs 250 needs to be deposited in a year.
- If the minimum amount of Rs 250 is not deposited, then a penalty of Rs 50 will be imposed.
- 50% of the money deposited can be withdrawn when the child turns 18 years.
- The full amount can be withdrawn only when the girl turns 21.
- The tenure of this special bank account is 21 years from the date of opening the account.
- After 18, the girl can handle her account, and she can even deposit the money into the account.
- Deposit in the account is only allowed until the child is 15 years. After that, only interest will be accumulated, based on the money deposited.
- If the girl gets married at the age of 18, then account closure, and full money withdrawal is allowed.
- No interest will be deposited in the bank account if the girl child becomes a non-resident Indian.
- A deposit of more than Rs 1.5 lakh can be made in this account, but no interest will be provided on that amount.
- While the deposits get tax exemption, the interests remain exempted from the tax, so does the maturity amount. This is one of the biggest benefits of this Govt scheme.
Sukanya Samriddhi Yojana Interest Rate
When writing this blog (October 2020), Sukanya Samriddhi Yojana Interest Rate is 7.6% annual. When this scheme started, the interest rate was 9.1% which increased to 9.2% and then reduced to 8.6% in 2016-17.
As of April 2020, the interest rate was reduced to 7.6% annually. Sukanya Samriddhi Yojana interest exemption section is 80C under IT Laws.
Sukanya Samriddhi Yojana Benefits
Tax benefits along with the high-interest rate are the two biggest USPs of this unique scheme. Besides, the bank account can be transferred free of charge, anywhere in India. Even transfers between post offices to banks and vice versa are allowed.
Tax Benefits –
- Under Section 80C, parents of girl children who open a Sukanya Samriddhi Bank Account are eligible to claim deductions up to Rs 1.5 lakh since Rs 1.5 lakh is the maximum amount that the account holder is allowed to deposit under this scheme.
- The interest which gets accumulated under this scheme is also exempted from income tax.
- The lump sum received by the girl child’s parents upon maturity of this account is also exempted from income tax.
Sukanya Samriddhi Yojana Eligibility
The only eligibility for opening a Sukanya Samriddhi Account is that the girl child should be under ten years, at the time of opening the account. Besides, only one account under this scheme is allowed for every girl child. A family can open only two bank accounts for two girls under this Govt scheme.
What Documents Required for Sukanya Samriddhi Account?
For opening a bank account under Sukanya Samriddhi Yojana, the following documents are required:
- Birth certificate of the girl child
- Identification of the parents
- Proof of residence of the parents
- Medical certificate of the proof of birth, in case multiple girl children are delivered on the same day
Depending on the banks and the post office branch, some other documents can be required, which is a case-to-case basis.
The objective and the purpose of launching Sukanya Samriddhi Yojana were to empower the girls and enable their parents to save money for their education and marriage. Income Tax benefits were combined to provide more leverage and make it attractive, and high-interest rates were allowed to entice more and more depositors.
If you need any help regarding the govt. scheme for girls or wish to know which bank is best for Sukanya Samriddhi Account, then experts at MSMEx can help you right away. All you need to do is book an appointment with an expert in government schemes and clear all your queries and doubts.
MSMEx provides live and instant assistance for any business or government schemes-related queries.
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