The account holder can avail of various benefits under this Scheme.
The thought behind this Scheme is to promote savings and secure a girl's future. It aims at women empowerment and education. The Account has a tenure of twenty-one years or till the girl gets married. The minimum balance to be maintained under Sukanya Samriddhi Yojana Post Office is relatively low and earns a reasonable interest. The process of opening a Sukanya Samriddhi Account is straightforward. Girls are the strong pillars of our nation. Education of our daughters is essential.
Eligibility Criteria for PO Sukanya Samriddhi Yojana
- The girl for whom the Account is to be opened should be below ten years of age.
- The biological parents or legal guardians only can open the Account.
- The account opener must fulfil all the necessary documents and conditions
- Only one Account can be opened in the name of the child
- A maximum of two accounts can be opened by the family, three in one girl and two twin girls. Three accounts can be opened in the case of triplets.
- The Account can be opened only for the girl child.
Salient Features of the Scheme
Here is a rundown of the key features offered under the Post Office Sukanya Samriddhi Yojana:
- The girl can operate her Account after she is 18 years old; she must submit all the necessary documents to the post office.
- The Minimum Deposit amount under Sukanya Samriddhi Yojana Post Office is just Rs.250
- The Maximum Amount is Rs.1 50,000 in a financial year.
- A reasonable rate of interest and Rebate facility under the Income Tax Act, 1961 can be availed.
- Easy to open and operate
- Promotes secure future, and savings
- An account holder can withdraw money on maturity only. However, under some circumstances, premature withdrawals are permitted. Sometimes half of the amount deposited can be withdrawn for educational or other relevant purposes.
- Several banks and post offices support the Scheme.
Benefits and Advantages of the Scheme
The following are the core benefits and key advantages of Sukanya Samriddhi Account by Indian Post Office:
- Compounding: This Account is a long-term savings account under which the benefit of annual compounding is applicable. This ensures higher returns on maturity. Higher investment attracts higher returns.
- Flexibility: The minimum amount to be deposited is relatively low; this allows the parents to deposit money according to their financial standing in a particular year. There is no specific amount to be deposited every year. Any sum between the minimum and maximum deposit amount can be deposited in the Sukanya Samriddhi Yojana Post Office.
- Guaranteed Returns: Sukanya Samriddhi Yojna is backed by the government, so it provides security and trust. The guaranteed returns will be received by the account holder after maturity, without any doubt.
- Transferability: The Account under Sukanya Samriddhi Yojana Post Office can be freely transferred from one location to another part of the country by the parents or legal guardians easily.
- Tax Benefit: Sukanya Samriddhi Yojana Post Office enjoys rebate benefit under Section
- 80 C of Income Tax Act, 1961. Maximum benefit of Rs. 1 50,000 can be availed in a year.
- “Tax benefit is subject to changes in tax laws. Standard T&C apply.”
- Betterment of future: Sukanya Samriddhi Yojana Post Office promotes a better future for the girl child. The amount can be withdrawn on maturity and can be used by the girl to enhance her future, marriage, business, or education. The rate of interest applicable is high and ensures good maturity amount benefit.
The Process to Purchase the Yojana
The procedure to purchase Sukanya Samriddhi Yojana Post Office is effortless and hassle-free. The information regarding the process can be easily made available by the use of the internet. To open the account, one must arrange all the required documents. These documents must be legal and authenticated.
One should go through the eligibility criteria before downloading the application form from the official post office website. This form is available on the Reserve Bank of India Portal. One can also collect the form from the Bank or Post Office wherever he wants to open the Account. After filling in the accurate and fair information in the form, the form must be submitted in the office and deposit some sum if one wishes to after opening the Account immediately. Thus, the Account under Sukanya Samriddhi Yojana Post Office is opened at ease.
After the girl completes 18 years of age, she must submit the proof and other required documents, and then she is eligible to handle her Account till maturity. Any doubt or queries can be easily solved via the internet, official website, an in-person meeting with the account opening in charge personnel. There is no hurry to fill the form; one must read and clear all the doubts before submission.
All the relevant information and requirements to opt for the Sukanya Samriddhi Yojana Post Office can be accessed via the internet easily. Some documents are essential to be submitted to open the Account. Once these documents are cleared and submitted, the account opening and operating process become simpler and more accessible. The documents needed to open the Sukanya Samriddhi Yojna Post Office Account are:
- Sukanya Samriddhi Yojna Form: This is also called as SSY Form. It is readily available on the official website of the post office and RBI. The form can also be collected from the nearest office or branch. One must read the form carefully and fill in the relevant information correctly.
- Birth Certificate: The Birth Certificate of the child is very important as it contains essential information like the date of birth, place of birth, and other details. It is proof to know the age of the child. The Account can be opened only if the girl child is below ten years of age.
- Photographs: Passport size photographs should be attached with the application. It helps in the identification of the account holder. The photograph should be the latest and of sound clarity.
- Other proofs: For KYC, one should submit a copy of an identity card, Adhar Card, Voter's ID, or passport. Residential proof should also be submitted.
- All the documents and proofs will be checked by the officers-in-charge and then proceed with the account opening process from their end.
- A cheque or DD of deposit should also be attached with the application. The minimum amount is Rs. 250 of deposit in Sukanya Samriddhi Yojana Post Office Account.
The Account under Sukanya Samriddhi Yojna Post office can be closed before maturity if the girl requires the money for marriage expenses after she is eighteen years old. Other cases where the Account is prematurely closed are:
- Death of the Account holder- If the child unfortunately dies, the Account is closed. The final amount in the Account and interest accrued to date will automatically receive the legal parents or guardian or the nominee. The parents should submit the proof of death and other relevant documents which are duly attested by the authorities to verify the death of the account holder.
- Extreme medical condition- In case of severe medical conditions, or life-threatening diseases, the Account is closed under the Sukanya Samriddhi Yojna.
- Inability to maintain the Account- If the account holder is under any financial stress and cannot maintain the Account, premature closure is allowed. All dues are settled if proper permission from the responsible authorities is taken. Also, if the Central Government directs the closure of any account due to the inability of the depository to maintain the Account, the Account is closed and settled.
- A girl can operate her Account after she is 18 years old; till then, the Account is to be operated by the parents or the legal guardians.
- If the account holder cannot pay the minimum deposit amount in a year, the Account will be termed 'Default Account.' The default account will continue to earn interest till maturity as applicable under The Sukanya Samriddhi Yojana Post Office.
- This Scheme applies to the adopted child and stepchild also.
- No interest will be earned after the maturity period.
- Sukanya Samriddhi Yojana Account is the same as Savings Account; the amount can be withdrawn only when one needs it the most before maturity.
Terms and Conditions
- To open the Account, the girl must be below ten years of age.
- The Account will mature if the girl gets married after she is 18 years old or completes 21 years tenure.
- The amount deposited can be withdrawn by the account holder only on maturity.
- For Premature closure or withdrawal of the sum deposited before maturity, certain conditions mentioned in Sukanya Samriddhi Yojana Post Office must be fulfilled.
- All necessary documents and proofs must be authenticated and timely submitted.
- No one can deposit an amount above the maximum deposit limit in a year stated under the Sukanya Samriddhi Yojana Post office.
- All the guidelines and rules under Sukanya Samriddhi Yojna must be complied with.
The Account cannot be opened for a male child of the family.
A1. Sukanya Samriddhi Yojna provides the benefit of easy transferability of Account from one part of the country to another. The request must be given to initiating the transfer; authorities can also ask for the transfer. The authorities do the transfer upon request.
A2. The interest rate earned on Sukanya Samriddhi Yojana Post Office Account in F.Y 2020-2021 is 7.6%, while the rate was 8.4% for F.Y. 2019-2020. The rate keeps on changing, but as the amount is compounded, the Account earns higher returns.
A3. Based on the current or average interest rate earned on the Sukanya Samriddhi Yojana Post Office Account, one will incur approximately Rs.15-16 lakhs if the account holder deposits one lakh rupees yearly for ten years subsequently. The amount can be higher if the rates increase.
A4. No, the loan cannot be taken against the Sukanya Samriddhi Yojana Post Office Account amount. However, the account holder can avail withdrawal facility if all necessary conditions and criteria are fulfilled.
A5. The Sukanya Samriddhi Yojna Post Office Account enjoys a freely transferable Account, but it is valid only for transfer within the country. So, transfer of Account cannot be done if the account holder permanently shifts to another country. The account holder is no longer a resident of India.
A6. If the account holder fails to deposit a minimum amount in a financial year, the Account is termed the default account. It can be reactivated by paying charges. The charges are Rs.50 only.
A7. No, as the government backs the Sukanya Samriddhi Yojana Post Office. It is exempted under the tax. No tax is applicable on the amount invested, interest earned, and maturity amount. Rebates under section 80C can also be claimed up to the maximum limit in a year according to Income Tax Act, 1961.
A8. Maximum two accounts can be opened in a family. If two accounts are opened for the twins, another account for the girl child born after them cannot be opened. However, if she was born before the twins, then three accounts can be opened.
A9. The girl can withdraw money after she is eighteen years old for education on request or marriage. However, as she gets married, the Account is closed. If the partial amount is withdrawn for education purposes, the Account continues to operate and earns interest on the remaining sum till maturity.
Written By: PolicyBazaar - Updated: 20 August 2021