Bank of India Sukanya Samriddhi Account is a government-backed scheme. It was started in the year 2014. The scheme is considered as one of the key schemes to save girl children. It was created based on the "Beti Padhao, Beti Bachao" scheme of the Government of India. It allows the girl child of age 10 years to save for future so that when they attain 21 years, they can easily afford the expenses for further education or marriage.Read more
The scheme allows depositing a maximum amount ofINR 1,50,000. It offers tax benefits upto the amount mentioned. One account is applicable for one girl child in the family. The parents or legal guardians can operate the account until the girl attains 18 years. At 18 years, the girl can make partial withdrawal upto 50% of the total amount deposited as a lump sum or five installments.
The eligibility criteria to avail of the scheme benefits are put forth below.
The beneficiary of the Bank of India Sukanya Samriddhi Account must be a girl of age less than 10 years. If she is just 10 years old and applies for the scheme, she would require waiting for one year to open the account successfully. The account matures when the child attains 21 years. However, the beneficiary must be at least 18 years old to make partial withdrawal up to 50% from the account.
Bank of India Sukanya Samriddhi Account operator will be parents or the child's legal guardians till she attains 18 years. The parents or legal guardians must be a citizen of India. Only one parent or legal guardian from a family can get investment benefits from the account.
Opening Bank of India Sukanya Samriddhi Account requires a minimum of INR 250 and a maximum of INR 1,50,000. The account gives the provision to increase the investment amount annually in the multiple of INR 50 if required.
The account has the following key features that help India's girl children create better financial provisions for future expenses.
Bank of India Sukanya Samriddhi Account can be opened for girl children of India whose age is less than 10 years. The parents or legal guardians of these girl children can open the account on behalf of the child. The girl child can manage the account once she becomes 18 years old. She can withdraw the money deposited in the account and its interest when the scheme matures, and the child becomes 21 years old.
One girl child can have one account. A family can buy a maximum of two plans for each of the two girl children. However, the family can buy more than two but not more than four plans for triplets or twins as applicable.
Bank of India Sukanya Samriddhi Account benefits apply only to the girl child of India. It does not apply to a girl child who has gained NRI status. However, if the account holder changes its citizenship status to NRI, the scheme would not allow paying further deposits. However, it will offer benefits to depositors on a non-repatriation basis once it matures. But, the account will not offer any maturity benefits.
The necessary amount can be deposited in the account through cheque, cash, online transfer, or bank forms.
The beneficiary can deposit money at a minimum amount of INR 250 and a maximum of INR 1,50,000. They can increase the deposits by the amount in multiples of INR 50. However, if any amount more than INR 1,50,000 is deposited in the scheme, the additional money will not benefit.
The scheme offers 7.6% interest annually. The interest rate initially was 9.1%. The rate of interest changes as the government takes different provisions based on the market scenario.
Bank of India Sukanya Samriddhi Account can be transferred from any branch of the bank to other branches across the state. If the account is kept in the post office, it can be transferred to the Bank of India and vice versa. However, the ownership of the account cannot be transferred.
The account can be operated by the girl child once she attains 18 years. Before that, the parents or legal guardians of the child will operate the account.
Bank of India Sukanya Samriddhi Account offers the following key benefits and advantages to the beneficiary and nominees as applicable.
Tax Benefits: The scheme offers tax benefits as per Section 80C of the Income Tax Act 1961. The tax benefits apply to the maximum amount of INR 1,50,000. The tax benefits will be offered to one parent or legal guardians of the child.
“Tax benefit is subject to changes in tax laws. Standard T&C apply.”
The scheme has an interest rate much higher than other government-backed savings accounts. It offers a 7.6% interest rate to the money invested. The policy does not offer interest to the amount deposited more than INR 1,50,000.
The policy offers a guaranteed return on the money invested as it is a government-backed investment scheme. It offers interest rates compounded annually. Therefore, the policy offers a much higher return if it is continued for an extended period.
The policy offers flexibility to choose the deposit amount from a minimum of INR 250 to a maximum of INR 1,50,000. The policy operators can increase the amount of money invested annually in the multiple of INR 50. However, if they fail to deposit the required amount on the due date, they can continue the policy by paying a penalty of INR 50.
The policy can be transferred from one branch of the Bank of India to another branch located in a different state as required. The beneficiary can transfer theAccount from the bank to the post office and vice versa. However, the benefits and rates applicable to the policy will not change due to any transfer.
The policy offers a partial withdrawal facility. Once the girl child attains 18 years, she can withdraw money partially upto 50% of the money deposited for marriage and education purposes. The partial withdrawal can be made in lump-sum or five installments as applicable. However, once the policy matures, the beneficiary can withdraw the amount deposited with the interests as applicable.
The policy offers nominees to withdraw the deposited amount if the death of the insured child takes place. It allows upto four nominees from a family to avail benefits.
The interested individuals are required to collect the details of the scheme from the nearest branch of the Bank of India or the website of the company. They can also access the scheme details from the RBI website or Post offices. They must read all the information mentioned in the document if they can continue the scheme until the girl attains 21 years.
The individuals are required to fill up the application form by providing the necessary details and submitting related documents to the Bank of India branch to purchase the scheme successfully. They can make payments through the digital or offline platform. They must continue to deposit the amount required to get the estimated benefits.
The parents or the legal guardians of the girl child must submit the following documents to help operate the account successfully.
To apply for the Bank of India Sukanya Samriddhi Account, the interested individuals must fill up and submit the scheme's application form successfully. They can get the application form from the Bank of India website or the bank's nearest branch.
The proof of date of birth of the girl child must be provided. The applicable certificates are Voter ID, Aadhar Card, Passport, etc.
The bank authority is required to operate the KYC process of the account holder. The account holders are required to submit documents such as Voter’s ID, Aadhar Card, Passport, License, etc., to help the bank to operate the KYC process successfully
The individuals must submit the passport-sized photo of the account holder with the files to open the Bank of India Sukanya Samriddhi Account.
For partial withdrawal, once the child attains 18 years, the account holders are required to submit an educational certificate or marriage certificate as required to validate the reason for withdrawal.
The additional features of the Bank of India SSY scheme are as follows:
The account holders or their parents, or legal guardians must read all the clauses mentioned as terms and conditions before buying the policy. They must completely agree with the terms and conditions mentioned in the scheme details before applying for it.
However, as per the terms and conditions of the scheme, the Bank of India Sukanya Samriddhi Account is closed once the account holder's death takes place. The nominee of the account will get the interest and the entire deposited amount. They must produce the death certificate of the account holder to claim the benefits.
The account holders can close the account if they suffer from any terminal diseases or death. In case of the beneficiary's death, the balance with interest upto the date of death will be offered to the guardian or the parents. The interest rate on the amount between the date of death and the date of closure will be applicable at the Post Office Savings Account interest rate.
Bank of India Sukanya Samriddhi Account does not offer any loan or similar investment facility. A girl child of age more than 10 years cannot apply for the scheme. If the money deposited crosses the maximum limit of INR 1,50,000, the scheme will not offer any tax benefits on the additional money per Section 80C of the Income Tax Act 1961.