Sukanya Samriddhi Yojana Account is a new Initiative from Government of India, to help the parents of girl children, to meet the future educational and marriage expenses. Sukanya Samrudhi Yojana Account was launched by Prime Minister Narendra Modi on 22 January 2015 as a part of “Beti Bachavo, Beti Padhavo” Campaign. The greatest advantages of the scheme includes its higher returns and income tax benefits. To join this scheme parents of girl child should open a specialized account in any of the collaborating banks or post office.
Sukanya Samriddhi Yojana Account – terms and conditions.
- Only parents with girl children can open Sukanya Samriddhi Yojana Account.
- Only one account can be opened for a single girl child.
- One parent can open maximum of two accounts in the name of two girl children but a third account can be opened in the name of a girl child, in the event of birth of twin girls as second birth or if the first birth itself results into three girl children.
- Age at entry : 0 -10 years of age.
- Minimum investment amount: 1000 per year.
- Maximum investment amount: 1,50,000 per year.
- Investment can be done only for 14 years from the date of opening of the account.
- Maturity Period of the account will be 21 years from the date of opening of the account or marriage of the child which ever is earlier.
- Up to 50 % of the available amount can be withdrawn as partial withdrawal to meet educational expenses.
- Interest rate for the account is regulated by Ministry of Finance and is declared every year.
- Interest rate offered for the financial year 2016-17 is 8.6% compounding annually
Sukanya Samriddhi Yojana Maturity Value – Quick calculator
Documents Required to Join Sukanya Samriddhi Yojana Account.
- SSY Account opening form
- Birth Certificate of Girl Child
- Identity Proof
- Residence proof
Sukanya Samriddhi Yojana account can be opened through any of the banks listed here or through Post Office.
Banks offering Sukanya Samriddhi Yojana Account.
- Allahabad Bank
- Andhra Bank
- Axis Bank Limited
- BoB – Bank of Baroda
- BoI – Bank of India
- Bank of Maharashtra
- Canara Bank
- CBI – Central Bank of India
- Corporation Bank
- Dena Bank Limited
- ICICI Bank Limited
- IDBI Bank Limited
- Indian Bank
- IOB – Indian Overseas Bank
- OBC – Oriental Bank of Commerce
- P&SB – Punjab & Sind Bank
- PNB – Punjab National Bank
- SBBJ – State Bank of Bikaner and Jaipur
- SBI – State Bank of India
- SBH – State Bank of Hyderabad
- SBM – State Bank of Mysore
- SBP – State Bank of Patiala
- SBT – State Bank of Travancore
- Syndicate Bank
- UCO Bank
- Union Bank of India
- United Bank of India
- Vijaya Bank
Interest rate offered for Sukanya Samriddhi Yojana Account
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Pros of Sukanya Samriddhi Yojana Account
- Comparatively better interest rate offered in the scheme makes the scheme attractive.
- Income Tax rebate u/s 80 C is an added advantage.
- Option to withdraw amount to meet the educational expense of the child.
Cons of Sukanya Samriddhi Yojana Account
- Investment allowed only up to 14 years.
- Low liquidity as the scheme cannot be closed in between.
- Account allowed only for two girl children.
Anish L J is a ‘Financial Planner’ and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.