Sukanya Samriddhi Account-Saving Scheme
Sukanya Samriddhi Account
Sukanya Samriddhi Yojana is a new scheme launched in the year 2014 by Prime Minister Narendra Modi. The Sukanya Samriddhi Account scheme was launched with an initial interest rate of 9.10% p.a. for the year 2017-2018. This has been increased to 9.20% p.a. for the current fiscal 2015-16.Sukanya Samriddhi Yojana interest rate is revised on a yearly basis and hence for FY 2016-17 it has been revised 8.6%.
On 23 July 2018, the criteria for minimum annual deposit for the Sukanya Samriddhi Yojana account has been revised to Rs.250 from the earlier amount of Rs.1,000. Also the interest rate for the July-September quarter is 8.1%.
A premier saving scheme offering from the Indian Ministry of Finance, the Sukanya Samriddhi Yojana (SSY) Accounts are aimed at ensuring a bright future for the girl children in India. This ambitious and resourceful scheme was launched by the honorable Prime Minister of India, Mr. Narendra Modi, and has quickly emerged as a popular “Savings Scheme” that aims to provide financial backing for a girl child’s varied, lifelong aspirations.
The thoughtful features of this scheme are as follows-
- Attractive interest rate at 9.2% p.a. This is in fact one of the highest rates of interest in its class.
- Account can be opened at any departmental post office or authorized banks in India.
- The opening amount for the SSY account is Rs.1000. Thereafter, deposits can be made in multiples of Rs.100. The minimum deposit into the account must amount to Rs.1000, the maximum limit is Rs.1,50,000 per year.
- The SSY account attains maturity in 21 years from the date of issue. However, the account holder is expected to pay into the account for a total duration of 14 years.
- A SSY account can be transferred from one post office/bank to another, anywhere in India.
Benefits of Sukanya Samriddhi Account
Apart from the higher interest rates, some of the other Sukanya Samriddhi scheme Benefits are as follows:
- Sukanya Samriddhi Account Tax benefits under section 80C.
- The account can be transferred anywhere in India.
- The minimum amount that needs to be deposited on an annual basis is very low, i.e., Rs.250 per year.
- The girl child will be able to operate the account after the attainment of 10 years.
- The girl child will receive the proceeds when the account matures.
The SSA is unique in the fact that it is a scheme that offers financial security and growth, in addition to creating awareness on the well-being of the girl child.
Sukanya Samriddhi 9.2% Interest: Maturity Amt. Calculation
The application process for the Sukanya Samriddhi scheme is very simple and requires the parents of the child to submit certain documents, such as:
- Account Opening Form
- Birth Certificate of the child
- Address and proof of identity of the legal guardian
The amount that the child receives on maturity of the policy is totally tax-free. There will also be no tax on the investments made towards the scheme.
If you are the parent of a girl child who has decided to invest in this scheme, the maturity amount that you can avail when you start contributing from the financial year 2015-16 is as follows. The interest rate considered for this calculation is 9.2%.
How is the interest rate on deposits calculated?
The government fixes interest rates on quarterly basis based on the G-sec yields. The interest rate spread that the SSY enjoys over the G-sec rate of comparable maturity is 75 basis points.
The interest rate since its launch is as follows:
From April 1, 2014: 9.1%
From April 1, 2015: 9.2%
From April 1, 2016 -June 30, 2016: 8.6%
From July 1, 2016 -September 30, 2016: 8.6%
From October 1, 2016-December 31, 2016: 8.5%
From July 1, 2017- December 31, 2017: 8.3%
From January 1, 2018 – March 31, 2018 : 8.1%
From April 1, 2018 -June 30, 2018: 8.1%
From July 1, 2018 -September 30, 2018: 8.1%
How it works?
The account is opened and operated by the natural or legal guardian of the girl child in her name till she turns 10.
When she turns 10, the girl child can operate the account herself; however, deposit in the account may be made by the guardian or any other person or authority.
What is the mode of deposit?
The deposit in the account can be made in cash or by cheque or demand draft and an endorsement on the back of such instrument has to be made and signed by the depositor, indicating the name of the account holder and the account number in which the deposit is to be credited.
Deposits may also be made through electronic means (e-transfers) in the concerned post office or banks if there is CBS (core banking solutions) availability in them.
In case the deposit is made by cheque or demand draft, the date of encashment of the cheque or demand draft is the date of credit to the account, while for e-transfer, it is the date of deposit.
What are the rules for opening Sukanya Samriddhi Account?
The account can be opened by the natural or legal guardian in the name of the girl from her birth till she turns 10.
A depositor may open and operate only one account in the name of the girl child under these rules. One can’t open two accounts for one girl.
The birth certificate of the girl in whose name the account is opened should be submitted by the guardian at the time of the opening of the account in the post office or bank, along with other documents relating to identity and residence proof of the depositor.