Sukanya Samriddhi Yojana: Benefits, 9.2% Interest, Features, Banks

Sukanya Samriddhi Yojana Account

After the highly successful Pradhanmantri Jan Dhan Yojana which offered many benefits, Indian government in January 2015 launched Sukanya Samriddhi Account, a special small deposit savings scheme for a girl child. The main objective behind the launch of this scheme was to secure financial future of the girl. In India there is still belief that having a girl means financial burden (either marriage or education) and this scheme is an answer to all such people with this insane mentality.

Sukanya Samriddhi Account
Sukanya Samriddhi Account for Girl Child

Here are the details:

  • Eligibility: What should be the age of girl in order to open the account? This scheme is only for girls who are ten years or below. You can also open the account after she’s born provided birth certificate is produced. However you cannot open account for your girl child if she is more than 10 years old.
  • Interest Rate: 9.1% for the financial year 2014-2015. For 2015-2016, interest rate has been increased to 9.2%. Interest rate will keep on changing every year and Indian government will notify on the same. Check out maturity amount calculated @9.2% interest rate. Investing Rs. 1,50,000 will earn you Rs. 80,06,463.
  • Is the income earned taxable: The most important benefit of sukanya samriddhi yojana is that the investments and returns are exempt from section 80C of Indian income tax act. This was announced in the Union Budget on 28th Feb 2015.
  • Full Withdrawal: The scheme matures when the girl reaches 21 years of age. After this, full amount can be withdrawn.
  • Is partial withdrawal possible: Yes. Once a girl reaches 18 years of age, she can withdraw 50% of the amount. Condition is that the girl can opt for premature withdrawal only for her marriage or higher study.
  • Interest rate on early withdrawal: Interest rate at the time of premature withdrawal would be applied. Note that interest rates would keep changing every year and government would decide the rates similar to public provident fund.
  • Who can open the account: Natural parents or legal guardian on the behalf of girl child are authorized to open the account.
  • Initial deposit amount: Initially Rs. 1,000 has to be deposited.
  • For how many years deposit can be made: Till 14 years from the date of opening the account. You can see a simple interest rate calculation for this scheme where investing Rs.10,000 every year will get you Rs.5,26,051 on maturity.
  • Where to open: You can open Sukanya Samriddhi Yojana Account at any Indian government post office and notified commercial/PSU banks. Here’s the list of 28 banks to open this account. Select post office have already started to open Sukanya Samriddhi Yojna account. Check out detailed post on how to get this form.
  • What if parents have more than 1 girl child: In such a case, parents can open another account on the different name but only for 2 girl child. Only exception is that the parents have twins and another girl child.
  • Documents required to open the account: There is a minimal document requirement as follows for sukanya samriddhi account:
  1. Girl’s birth certificate
  2. Identification and address proof of parents/guardian
  • Minimum and Maximum Deposit: Minimum deposit is Rs. 1000  and maximum deposit is Rs. 1,50,000.
  • When to deposit money: Anytime between every financial year i.e. April-March. And any number of deposits can be made in a month/a financial year.
  • Mode of payment: Cash/Cheque/Demand draft. There is no online payment facility available.
  • What if deposit is not made in any particular year: Your account will lapse. And for revival of the account, you will have to pay a small penalty of Rs.50 from the scheme will not carry any tax.
  • When can a girl start operating the account: Once the girl reaches the age of 14 years, she can take full control of operating the account.
  • Transfer of account: It is possible anywhere in India and most importantly it can be transferred from one post office to another and from one bank to the other.
  • Passbook facility: This is also provided when account is opened. The passbook will contain details such as name and address, date of birth and account opening date and number.
  • Nomination facility: Not available.

See how the passbook looks, once account is opened.

Other details:

  • NRI’s cannot make investment in this post office small savings scheme
  • If anything happens to the parents and yearly contribution cannot be made then premature closure is possible. For this, request has to be made and death certificate has to be produced by visiting in person to the authority.
  • If the girl gets married before 21 years, the account will become non-operative.
  • If the girl child dies then account will be immediately closed and balance amount in the account will be given back to the guardian.

Download account opening form for this scheme. Also see detailed chart showing difference between public provident fund and sukanya samriddhi account.

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Have you opened account for your girl child? If yes, then please share experience in comment box below which will help visitors of this blog who want help in opening the account. Thank you in advance!

Do you know know that Prime Minister Jan Dhan Yojana (PMJDY) has set Guinness World Record. It’s our duty to ask every Indian with no bank account to open PMJDY account and avail benefits such as life cover and Rs.5,000 overdraft limit.

Be ready to get benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana and Suraksha Bima Yojana with cheapest insurance premium at Rs. 330 & Rs. 12 per annum. These two schemes were announced in the union budget for poor and underprivileged people of India on 28th Feb 2015.

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