In addition, the interest accumulated on the deposits and maturity amount is exempted from tax.
Following the plans of the government, the Sukanya Samriddhi account is being offered by the Allahabad Bank. It is an account opened in the girl child's name, whose age is less than ten years. This plan attains maturity when she becomes 21 years old. Every year the money is to be deposited in that account by the parents or guardians of the girl child. The deposited money keeps growing at an interest rate pre-determined by the government.
Eligibility Criteria for Allahabad Bank SSY
The eligibility forAllahabad Bank Sukanya Samriddhi Yojanais as follows:
Sukanya Samriddhi Yojana eligibility for girl child
- Only female children can get the benefits of the Allahabad Bank Sukanya Samriddhi Yojanasaving scheme.
- Eligibility for opening a Sukanya Samriddhi Account is upto ten years of age of the girl child.
- However, an extra period of 1 year as grace time is allowed. In other words, a Sukanya Samriddhi Account can also be opened for a girl child within a year of her turning ten years of age.
- The account holder's age-proof document is mandatory to be submitted at the time of application for opening the savings scheme account.
- The parents of the girl child or her legal guardians can open the Sukanya Samriddhi Yojana account in her name any time before she turns ten years of age.
- One account per girl child is allowed.
- The legal guardian can open accounts at the most for two girls only.
- The girl child in whose name this account is opened has to be necessarily an Indian citizen. She should reside in India at the time of account opening and remain so until the maturity or closure of the account.
Sukanya Samriddhi Yojana eligibility for parents
The eligibility criteria for opening this account in the name of the girl child for parents or legal guardians of the girl child are:
- The Sukanya Samriddhi Account can be opened only by the biological parents or legal guardians on behalf of their girl child.
- Parents or legal guardians can open only up to two accounts for their girl children.
- As information provided above, a parent or legal guardian can open at the most two Sukanya Samriddhi Accounts for two girl children. But in the case of twins and triplets, one parent or legal guardian is eligible for opening up to three accounts provided legal proof is submitted.
Salient Features of Allahabad Bank Sukanya Samriddhi Yojana
Some of the salient features of Sukanya Samriddhi Yojana, which Allahabad Bank is offering, are as follows.
- Account opening: The facility to open this account is available to only those families who have a daughter less than ten years old.
- Twin daughters: Each girl child can have an account in her name even if the family has twin daughters to a maximum of three girl children. In the case of twin daughters, the parents have to provide a certificate to that effect.
- Deposits: The minimum amount that can be deposited is Rs. 250, and the maximum is Rs. 1.5 Lakh.
- Parents will have to make sure that they invest at least Rs. 250 in the account every year.
- After the initial investment, the subsequent investments can be made in multiples of Rs. 100 only.
- Deposits paying term: Investment can be made in this account only for 14 years from the date of opening of the account.
- Interest rate: The interest rate for the Sukanya Samriddhi Yojana account is pre-determined by the government.
- Withdrawal: Money deposited in this account cannot be withdrawn until the account holder turns 18 years of age, and even at that time, only 50% of the balance in the account can be withdrawn.
Benefits and Advantages of the Scheme
Some of the benefits of the Allahabad Bank Sukanya Samriddhi Yojanaare:
- One can invest as low as Rs. 250 in a single financial year
- The maximum investment which can be made is around Rs. 1,50,000 in a single financial year
- From the opening date of the Allahabad Bank Sukanya Samriddhi Yojanaaccount, the investment can be made for 14 years.
- This scheme would mature after completing 21 years from the date of the opening of the account. The account holder can get married in this period of 21 years or before the end of the span of 21 years. But after her marriage, the operation of this SSY account will get suspended.
- Under this SSY, a passbook would be issued at no extra to all the customers.
- Withdrawal Facility
- To meet all the account holder's financial necessities to ensure her higher education and/or marriage, the account holder might use the withdrawal facility partially after she attains the age of 18 years.
- If the girl child gets married before the account matures, then the SSY account should be closed immediately.
The following are the advantages of opening an Allahabad Sukanya Samriddhi Yojana account:
- The objective of the SSY - The main objective of the Allahabad Bank Sukanya Samriddhi Yojana is to help the girl child get the capital required for her education and marriage. It offers long-term investment and has the power of compounding.
- Safety - It is safe and provides guaranteed returns as the government backs the SSY scheme.
- Deposit - It gives greater flexibility to pay between Rs 250 to Rs 1.5 lakh in a year.
- Transfer - One can quickly transfer the SSY account from one bank to another or from one post office to another.
- Tax - Under Sec 80C of the Income Tax Act, 1961, one can get a tax deduction for a maximum of Rs 1.5 lakh.
The Process to Purchase the Scheme
The general process for opening an Allahabad Sukanya Samriddhi Yojana is the same for banks or post offices. It is as follows:
- One needs to fill out the required SSY Account form for opening an account.
- Submit the required documents with the photographs
- Then one can pay the required deposit amount, which is between Rs 250 to Rs 1.5 lakhs.
- One can then give any standing instruction to the bank or post office branch, or one can easily set up an automatic credit for an SSY account using net banking.
There are two ways in which one can open an Allahabad Bank Sukanya Samriddhi Yojana account. Below are the following ways:
- Offline: For those wanting to open anSSYaccount through offline mode, they need to physically visit their nearest Allahabad bank branch. At the branch, fill up the SSY account application form with the correct details that are duly signed. One needs to attach the relevant documents and the deposit amount that ranges between Rs 250 to Rs 1.5 lakh through DD, Cheque, or Cash. Once these documents are adequately verified by Allahabad bank, an SSY account will get opened.
- Online: For those wanting to open an Allahabad Bank SSY account through an online channel, one needs to visit the official Allahabad Bank website. From there, go to the SSY scheme page, where the person would be asked to apply online. Click on the “Apply Online” button. Fill up the online SSY application form; attach the required documents as mentioned below. After which, one can easily make an online payment between Rs 250 and Rs 1.5 lakhs. After the verification process, the SSY account will get opened. Or, those individuals who already have a bank account with Allahabad bank can directly open their net banking account and apply for an SSY account by paying the aforementioned amount directly.
Note: Currently, none of the authorized banks or post offices allows the application for opening the Sukanya Samriddhi Yojana account through an online channel. But after the account has opened post the submission of the necessary documents, one can use it for setting the required standing instructions through online mode.
The documents required for opening an Allahabad Sukanya Samriddhi Yojana account are:
- Any document having the child's name and her birth date like AADHAAR Card, Birth Certificate, etc. The certificate number and date of issue of the Birth Certificate must be mentioned.
- ID proof for Parent/Guardian like AADHAAR Card, Voter Id Card, PAN Card, Driving License, etc.
- DD Number/Cheque that is used for the initial deposit
- The permanent and present address of the account holder would be the same as the address provided by the KYC of the parents.
- Other KYC documents of the parents
- Photographs of the parent and the girl child
All these documents with their photocopies must be attached along with the application form for the SSY account. After verification, the account would get opened by the bank along with the
Additional Features of the Scheme
Some of the other features of Allahabad Bank Sukanya Samriddhi Yojanaare:
- Before the end of every financial year, a minimum payment of Rs 50 and the required amount between Rs 250 to Rs 1.5 lakh must be paid as the annual deposit for the SSY or Sukanya Samriddhi Yojana. This would be taken as confirmation that the account has been revived.
- For preventing the account from being deactivated, a person must at least pay Rs 250.
- The deposit for the Allahabad Bank Sukanya Samriddhi Yojanascheme can be made through offline channels like cheque, cash, and demand draft or online channels like net banking and UPI.
- After reaching 18 years of age, the girl child can withdraw 50% of the total amount for her higher education.
- The amount, on maturity, will be paid to the girl child only.
- After maturity, no other interest will be paid for keeping the money in the account.
Terms and Conditions
The terms and conditions must be accepted for openingAllahabad Bank Sukanya Samriddhi Yojana. On the death of the account holder, the closure of the SSY account occurs immediately. The nominee gets the amount accumulated until the death of the account holder.
In case of a medical emergency and the account holder/parents of the girl, the child cannot operate the account then, they can file for discontinuing the scheme account.
The following are the exclusions of the Allahabad Bank Sukanya Samriddhi Yojanaaccount are:
- If the parents are non-residents of India, then they cannot open an SSY account.
- The girl child must be a resident of India and must remain so until the SSY scheme matures.
- There is no loan offered under the Allahabad Bank Sukanya Samriddhi Yojanascheme.
A1. If the deposit is not made regularly every year, then the account falls under the account under default.
A2. Such accounts can be activated by paying a penalty of Rs 50 for every single year that the person has defaulted.
A3. The account can be reactivated within a span of 15 years from the date of opening the account.
A4. Yes, an adopted girl child is eligible forAllahabad Bank Sukanya Samriddhi Yojana account.
A5. If the account holder attains an NRI status before maturity, then the account closes immediately.
A6. No, any withdrawal is not allowed before the account holder reaches 18 years of age.
A7. Yes, one can check their account balance for SSY online.
A8. No, one can transfer an SSY account from one bank to another and from one post office to another. It cannot be transferred from the post office to the bank.
A9. Yes, the interest rate keeps changing forthe SSYaccount for every quarter.
Written By: PolicyBazaar - Updated: 08 July 2021