Sukanya Samriddhi Scheme - Tricky Finance

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The Sukanya Samriddhi Scheme account can be opened by the guardian in the name of a girl child below the age of 10 years. Only one account can be opened in India, either in a Post Office or in any bank, in the name of a girl child. Families can open this account for a maximum of two girls. However, in the case of twins or triplets, more than two accounts can be opened to accommodate each girl child.

Deposits in Sukanya Samriddhi Scheme:

(i) The account can be opened with a minimum initial deposit of Rs. 250.

(ii) In each financial year, a minimum deposit of Rs. 250 and a maximum deposit of up to Rs. 1.50 lakh (in multiples of Rs. 50) can be made. Deposits can be made in lump sum or through multiple installments.

(iii) Deposits can be made up to the completion of 15 years from the date of opening the account.

(iv) If the minimum deposit of Rs. 250 is not made in the account during a financial year, the account will be considered a defaulted account.

(v) A defaulted account can be revived before the completion of 15 years from the date of opening the account by paying a minimum of Rs. 250 plus Rs. 50 as a default fee for each defaulted year.

(vi) Deposits made in the Sukanya Samriddhi Scheme account qualify for deduction under section 80C of the Income Tax Act, providing tax benefits to the account holder.

Interest in Sukanya Samriddhi Scheme:

(i) The account will earn interest at the prescribed rate notified by the Ministry of Finance on a quarterly basis.

(ii) Interest will be calculated for each calendar month based on the lowest balance in the account between the close of the fifth day and the end of the month.

(iii) Interest will be credited to the account at the end of each financial year.

(iv) In case of a transfer of account from Bank to Post Office or vice versa, interest shall be credited to the account at the end of each financial year where the account stands at the end of the financial year.

(v) The interest earned in the Sukanya Samriddhi Scheme account is tax-free under the Income Tax Act, making it an attractive option for tax-efficient savings.

The account will be operated by the guardian until the girl child attains the age of majority, which is 18 years.

Withdrawal from the account:

(i) Withdrawal may be taken from the account after the girl child attains the age of 18 years or has passed the 10th standard, whichever comes first.

(ii) Withdrawal can be up to 50% of the balance available at the end of the preceding financial year.

(iii) Withdrawals may be made in one lump sum or in installments, not exceeding one per year, for a maximum of five years, subject to the specified ceiling and actual requirement of fees or other charges.

Premature closure of the account:

(i) The account may be prematurely closed after 5 years of account opening under the following conditions:

On the death of the account holder (from the date of death to the date of payment, PO Savings Account interest rate will be applicable).
On extreme compassionate grounds, such as the life-threatening disease of the account holder or the death of the guardian by whom the account is operated.

(ii) To proceed with the premature closure of the account, complete documentation and application are required.

(iii) For the premature closure of the account, the account holder must submit the prescribed application form along with the passbook at the concerned Post Office.

Closure on maturity:

(i) The account can be closed after 21 years from the date of account opening.

(ii) Alternatively, the account can be closed at the time of the marriage of the girl child after attaining the age of 18 years, within a period of 1 month before or 3 months after the date of marriage.

Frequently Asked Questions (FAQs)

1. Who can open the Sukanya Samriddhi Scheme account?
– The account can be opened by the guardian in the name of a girl child below the age of 10 years. Only one account can be opened for a girl child, and a maximum of two accounts can be opened in a family if there are twins/triplets.

2.What is the minimum deposit required to open a Sukanya Samriddhi Scheme account?
– The minimum initial deposit required to open the account is Rs. 250.

3. Is there a maximum limit for deposits in a Sukanya Samriddhi Scheme account?
– Yes, the maximum deposit that can be made in a financial year is Rs. 1.50 lakh.

4. Can the account be operated by the guardian after the girl child attains a certain age?
– Yes, the account will be operated by the guardian until the girl child attains the age of majority, which is 18 years.

5. Are the withdrawals from the account tax-free?
– Yes, the interest earned and the withdrawals from the account are tax-free under the Income Tax Act.

Conclusion:

The Sukanya Samriddhi Scheme is a beneficial investment avenue for the future of a girl child. With attractive interest rates and tax benefits, it encourages long-term savings for the girl’s education, marriage, and overall financial security. By opening an account in the name of a girl child, parents or guardians can secure her future and provide a solid foundation for her dreams and aspirations. It is an empowering step towards ensuring a brighter and financially stable future for the girl child.

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