Andhra Bank Sukanya Samriddhi Scheme is a crucial initiative of the Government of India to save girl child. The scheme was offered under the "Beti Bachao, Beti Padhao” initiative. Andhra Bank Sukanya Samriddhi Account used to be opened at Andhra Bank branches. However, in April 2020, the bank merged its operations with the United Bank of India.Read more
Therefore, the interested individuals must visit the United Bank of India branches to open the account. The girl child must be 10 years old to open the account.
Andhra Bank Sukanya Samriddhi Account has been merged with Union Bank Sukanya Samriddhi Account from 1st April 2020. However, the eligibility criteria applicable to Andhra Bank Sukanya Samriddhi Account have not changed. The individuals can access the account from Andhra Banks also.
The key eligibility criteria are mentioned below:
The scheme is applicable for girl children of age 10 years. The girl child must be an Indian citizen. The scheme is applicable for a maximum of two girl children of a parent. In that case, each girl child must have one account. In the case of twins or triplets, three accounts under the name of the same parents can be opened. However, in that case, a certificate from a reputed institute will be required.
The parents or legal guardians of the girl child must be an Indian citizen. One parent can avail a maximum of two accounts as applicable. The parents cannot transfer the ownership of the scheme. However, in case of parents' death, the scheme is either owned by a girl child or remains closed. In some cases of parents' death, Andhra Bank Sukanya Samriddhi Account is kept open with the deposited amount until it matures.
The parents can open the account by making an annual deposit of a minimum of INR 250 or at a maximum of INR 1,50,000. They must continue paying the annual deposit amount until the next 14 from opening the account. They can increase the annual deposit amount in the multiple of 100 as applicable. In case of failure to make a minimum deposit in a year, the account holder will be required to pay a penalty of INR 50 to continue the scheme.
The key features of the Andhra Bank Sukanya Samriddhi Account have been mentioned below:
Any girl child under the age of 10 years can have the account opened by her parents or guardians in her name. If the child is in her 10th birthday year, she would require waiting for one year to open the account. The girl child must be a citizen of India. The account will be managed by legal parents or guardians of the child. In the case of twins, the parents can open a maximum of three accounts. Otherwise, a family can open a maximum of two accounts.
A minimum of INR 250 or a maximum of INR 1,50,000 should be deposited to open the account. The parents or legal guardian must be a citizen of India. They can increase the deposited amount in the multiple of INR 100. In case of failure to deposit the required amount, they must pay INR 50 as a penalty.
The deposit of the Andhra Bank Sukanya Samriddhi Account is to be paid every year for the next 14 years from the account opening date.
The interest offered in the scheme is at 7.6% per annum. However, initially, the interest used to offer at a 9.1% interest rate. The interest rates can change as per government interventions.
The deposited money can be withdrawn partially up to 50% once the girl child attains 18 years. The money can be withdrawn for either marriage or education. In both cases, the girl must provide proper documents supporting the claims. On approval from the bank authority, they can withdraw money partially in five instalments or a lump sum.
Once Andhra Bank Sukanya Samriddhi Account matures, the girl can withdraw the deposited money along with the interests.
The ownership of the account cannot be transferred. However, the account can be transferred from one bank to other banks across different branches as applicable. It will help the girl child access the withdrawn money required to support their educational expenses in schools or universities located in other states. The parents can transfer the account from Andhra bank to post offices and vice versa within India as required. In case of transfer, the parents must provide address proof. Otherwise, a charge of INR 100 will be levied.
The legal parents or guardians can pay the deposit through online transfer, cash, demand draft, or cheque.
Andhra Bank Sukanya Samriddhi Account is applicable for girl child of age under 10 years. When the child attains 18 years, they can withdraw up to 50% of the total amount deposited. Otherwise, the account matures when the child attains 21 years. The girl should manage the account once she attains 18 years.
Andhra Bank Sukanya Samriddhi Account can be revived by paying a fine of INR 50 if the parents or legal guardian fail to make a minimum deposit of INR 250.
“Tax benefit is subject to changes in tax laws. Standard T&C apply.”
The interested individuals must read the scheme details carefully before opening Andhra Bank Sukanya Samriddhi Account. They can get the details from the nearest branch of Andhra Bank. They can also download the information of the scheme from the bank or RBI website.
They must ensure the girl child meets the scheme's eligibility criteria and fill up the details as required. It will help to reduce any chances of confusion in the future. They must also consider investing the amount of money that will help to get a high return. The account must be opened with a provision to continue it until the girl attains 21 years.
Once they submit the application form, they must purchase the scheme successfully by making payment through cash, cheque, online transfer, or bank payment slip as required.
The documents required to open and operate Andhra Bank Sukanya Samriddhi Account have been listed below:
The individuals must carefully read the terms and conditions mentioned in the scheme details before opening Andhra Bank Sukanya Samriddhi Account. They must understand and agree with the clauses mentioned in the terms and conditions.
The account offers closure and all the benefits as applicable to the nominee of the account holder in case of her death. However, the nominee must follow a legal approach to produce a death certificate to avail of benefits gained until the date of death.
Andhra Bank Sukanya Samriddhi Account can be closed in the following cases:
Andhra Bank Sukanya Samriddhi Account does not offer any loan facility. The account cannot be invested further in other investment schemes. The policy offers a tax exemption facility of up to INR 1,50,000 under Section 80C of the Income Tax Act 1961. The policy does not offer any investment facility for girls child of age more than 10 years. It does not include a boy child under its purview.