IDBI Bank Sukanya Samriddhi Yojana 

When it comes to healthcare, education, and growth opportunities, the girl child in India is ignored because of her gender. What is required is a change of attitude of society. To bring about this change, Sukanya Samriddhi Yojana was launched in 2015 by the Government of India as a part of the Beti Bachao Beti Padhao campaign, which aims to address the issue of the declining gender ratio image as a national initiative jointly run by various ministries of the Government of India.

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The Sukanya Samriddhi Yojana is specifically focused on the girl child and is designed as a small savings scheme that can be used towards the welfare of the girl child, such as higher education and marriage-related expenses. As per the scheme's provisions, IDBI Bank, similar to other commercial banks, offers IDBI Bank Sukanya Samriddhi Yojana at all authorized branches of IDBI Bank.

Eligibility Criteria for IDBI Bank Sukanya Samriddhi Yojana

The eligibility criteria for opening an IDBI Bank Sukanya Samriddhi Yojana account are minimal:

  • The account is opened in the girl's child’s name before she is 10 years of age.
  • Only one IDBI Bank Sukanya Samriddhi Yojana account per girl child is allowed.
  • The account can be opened by the parents or legal guardian for a maximum of two girl children only. This means that an account can be opened for an adopted girl child as well under the IDBI Bank Sukanya Samriddhi Yojana.
  • A third account can only be opened in the event of twin girls as second birth or if the first birth results in three girl children. 
  • The account holder, who is the girl child, has to be an Indian citizen and Indian resident in India at the time of opening the SSY account. She has to remain in India, closure or maturity of the account.

Salient Features of IDBI Bank SSY

IDBI Bank Sukanya Samriddhi Yojana has some unique features, which makes it an attractive investment option for parents of a girl child:

  • Long Tenure of the Account: The account may stay active for as much as 21 years from the date of opening of the account, post which the account shall be closed. So, the account is not ideal for short-term investment purposes. If one has a short-term investment goal in mind for the girl child, it is better to explore other investment avenues.
  • Limited Period upto which Deposits Need to be made: The depositor needs to deposit the minimum amount only for 14 years from the date of opening of theIDBI Bank Sukanya Samriddhi Yojana account. In other words, the account holder will earn interest from year 15 till the closure of the account even without having to invest a single rupee in the account in the interim.
  • Attractive Interest: The interest payable to the account holder is as per the interest rates declared by the Government of India every quarter. At present, IDBI Bank offers an interest rate of 7.60% per annum under the scheme. The interest rate is in line with the interest rates declared by the Government of India from time to time on various small saving schemes. The interest is compounded on an annual basis and is calculated monthly on the lowest balance in the account. The interest rate is not fixed, and it may change at any time in the future.

Core Benefits of the Scheme

Similar to any government monitored small savings scheme, IDBI Bank Sukanya Samriddhi Yojana has the following benefits:

  • Minimal Risk: Both safeties of principal and regularity of interest payments are assured, as the Government of India supports the scheme.
  • Low Initial Deposit: Individuals can open an IDBI Bank Sukanya Samriddhi Yojanaaccount with a low minimum deposit of Rs.250.
  • Tax Benefits: Deposits made in the IDBI Bank Sukanya Samriddhi Yojanaare eligible for tax deductions under Section 80C of the Income Tax Act, 1961. Further, the amount received at maturity, which includes the interest component, is exempted from income tax, thus enabling the girl to use the whole amount for her benefit.
  • Maturity Proceeds only to the Beneficiary: On maturity, the amount shall be payable only to the girl in whose name the account is held, thus ensuring that the money is used for her benefit.
  • Flexibility in Transfer: Individuals may open IDBI Bank Sukanya Samriddhi Yojana by transferring the account from any authorized bank or post office in the country, without any hassles or delays.
  • No Transaction Charges: Similar to all government monitored small saving schemes, no transaction charges shall apply for the investment made in IDBI Bank Sukanya Samriddhi Yojana.

The Process to Purchase the Plan

IDBI Bank has a simple process for opening of IDBI Bank Sukanya Samriddhi Yojana account: 

Step 1: To open the account, one has to fill the account opening form and submit it to any of the authorized branches of IDBI Bank. Presently, the scheme does not allow for opening an account online. However, once the account is opened, one may schedule standing instructions online.

Step 2: One may deposit any sum between Rs.250/- and Rs.1,50,000/- in IDBI Bank Sukanya Samriddhi Yojanabycash, cheque, or demand draft. Since there is an upper limit on the investment, if one wishes to send one’s daughter abroad for further studies, this scheme may not be sufficient to build a corpus.

Step 3: Once the account is opened, a passbook is issued to the account holder. The passbook facility is free of charge. This passbook needs to be presented during each deposit and at the time of withdrawal.

Step 4: One may set the standing instructions either at any of the authorized branches of IDBI Bank or through internet banking for credit of deposit amount to the said IDBI Bank Sukanya Samriddhi Yojana account.

Documents Required

Individuals wishing to open IDBI Bank Sukanya Samriddhi Yojanaaccount shall have to submit the following documents:

  1. Account Opening Form

    The account opening form shall contain the personal details of the parent or legal guardian and the girl child for whom the account is being opened. The form can be procured from the nearest authorized branch of IDBI Bank. 

  2. Know Your Customer (KYC)Documents

    One each of the followingKYCdocuments of the parent or legal guardian needs to be submitted along with the account opening form:

    • Identity Proof: A photo identity card such as a PAN Card, AADHAR Card, voter ID card, driving license, passport or Job Card by NREGA. 
    • Address Proof: Documents displaying the residential address such as AADHAR Card, voter ID card, driving license, passport, or Job Card by NREGA
  3. Age Proof of Girl Child

    The birth certificate is the primary document that establishes the age of a child. The certificate contains inter alia the name and date of birth of the girl child. Since the IDBI Bank Sukanya Samriddhi Yojanaaccount can be opened in the name of the girl child any time before the girl child attains 10 years of age, submission of this document is of prime importance. 

  4. Photographs

    Passport-sized photographs of the parent or legal guardian and the girl child shall have to be submitted along with the account opening form. 

  5. Other Document(s)

    If a third IDBI Bank Sukanya Samriddhi Yojanaaccount is being opened in the event of twin girls as second birth or if the first birth results in three girl children, a certificate from competent medical authorities shall have to be submitted.

Terms and Conditions 

The following additional terms and conditions of IDBI Bank Sukanya Samriddhi Yojana need to be borne in mind:

  • Withdrawal: No withdrawals are allowed till the girl attains the age of 18 years. After attaining the age of 18 years, 50% of the balance lying in the account as at the end of the previous financial year may be withdrawn to meet expenses of the girl’s education or her marriage.
  • Premature Closure: The following situations may allow premature closure of the account:
  • In the event of the death of the girl, the account will be closed, and the account balance along with interest due shall be paid to the parent or legal guardian. 
  • In certain instances, if the Central Government is convinced that the operation of the account is causing undue hardship (such as medical emergencies or death) to the girl, it may allow premature closure of the account. 
  • If the girl attains NRI/ PIO status any time prior to the maturity of the account, the account will be prematurely closed.
  • If the girl gets married prior to the maturity date, the account will be prematurely closed.
  • Irregular Payment or Revival of Dormant Account: A penalty of Rs 50/- will be levied per year of default if the customer does not deposit the minimum deposit amount of Rs.250/- in a financial year. The account can be regularized post payment of penalty.

Additional Features 

The parent or legal guardian may operate the IDBI Bank Sukanya Samriddhi Yojana account on behalf of the girl child until she attains 10 years. Post this age, and the girl child may operate the account on her own.

Key Exclusions

IDBI Bank Sukanya Samriddhi Yojana has no provision of adding a nominee to the account. In the event of the death of the girl, the account will be closed, and the account balance along with interest due shall be paid to the parent or legal guardian.

Over to you

Parents having daughters should certainly evaluate this option, and if possible, the full amount of Rs.1.50 lakh should be invested in this scheme every year for the complete duration of the scheme.

Keeping a holistic view of the welfare of every girl child in society at large, we must encourage people in our social circles to benefit from schemes such as IDBI Bank Sukanya Samriddhi Yojana scheme. Domestic help, office boys, cooks, housekeepers, drivers, etc., need to be educated about this scheme's features and benefits. The lock-in structure of this product will ensure that their daughters reap benefits from such schemes when they grow up.

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Written By: PolicyBazaar - Updated: 20 August 2021

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