“Beti Bachao, Beti Padhao” is the mantra with which Prime Minister Narendra Modi launched Sukanya Samriddhi Yojana on January 22nd this year. Later on, the government issued a notification to allow 80C exemption equal to the amount invested in the scheme up to Rs. 1,50,000, which is also the maximum amount one can invest in this scheme in a financial year.
Presently it is rated as the best small savings scheme and even better than the golden scheme of Public Provident Fund (PPF).
Sukanya Samriddhi Yojana is a small savings special deposit Scheme for girl child. This scheme is specially designed for girl’s higher education or marriage needs.
The scheme was recently launched for the welfare of the girl child, to save and educate the girl child.
Features of the scheme:
Who can open the account? – Sukanya Samriddhi Account can be opened on a girl child’s name by her natural (biological) parents or legal guardian.
What is the Age limit? – SSA can be opened in the name of a girl child from the birth of the girl child till she attains the age of 10 years. (Girl child who is born on or after 2-12-2003 can open account)
How many accounts can be opened?
You can open only one account in the name of one girl child and a maximum of two accounts in the name of two different children. However, you can open three accounts if you are blessed with twin girls on the second occasion or if the first birth itself results into three girl children.
Nomination Facility – It is not available in this scheme. In an unfortunate event of the death of the girl child, the account will be closed immediately and the balance will be paid to the guardian of the account holder.
How to open a SSA account?
Accounts in name of the girl child can be opened currently in post offices.
The account may be opened with an initial deposit of one thousand rupees. The minimum contribution in any financial year is Rs 1,000. Thereafter the contributions can in multiples of one hundred rupees. However, the total money deposited in an account on a single occasion or on multiple occasions shall not exceed Rs 1.5 Lakh in a financial year.
Deposits in an account may be made till the child completes fourteen years, from the date of opening of the account.
If minimum (Rs 1000 pa) amount is not deposited, the account will be treated as an irregular account. This can be regularized/renewed on payment of Rs 50 per year as penalty. Along with this, the minimum specified subscription for the year (s) of default should be paid.
The deposits in Sukanya Samruddhi scheme can be made in the form of Cash or Demand Draft or Cheque. The cheque or DD should be drawn in favour of the postmaster of the concerned post office.
The rate of interest on SSA for the financial year 2014-2015 is 9.1%. This is one of the highest rates of interest offered by Government on small savings scheme. The rate of interest is not fixed and will be notified by the central government on a yearly basis.
The account can be transferred anywhere in India if the girl shifts to a place other than the city or locality where the account stands.
On attaining age of ten years, the account holder that is the girl child may herself operate the account, however, deposit in the account may be made by the guardian or parents.
The scheme would mature on completion of 21 years.
Duration of the Scheme – The scheme will mature on completion of 21 years from the date of opening of the account. If the account is not closed on maturity after 21 years, the balance amount will continue to earn interest as specified for the scheme every year. In case the marriage of your daughter takes place before the maturity date i.e. completion of 21 years, the operation of this account will not be permitted beyond the date of her marriage and no interest will be payable beyond the date of marriage.
Deposit for 14 years only – Though the scheme has a duration of 21 years, you are required to make contributions only for the first 14 years, after which you need not deposit any further amount and your account will keep earning the interest rate applicable for the remaining 7 years.
What are the required documents to open Sukanya Samriddhi Account?
Birth certificate of the girl child has to be produced. The depositor (parents or guardian) has to submit his/her identity and address proofs. On opening an account, the depositor shall be given a pass book. It will have date of birth of the girl child, date of opening of account, account number, name and address of the account holder and the initial amount deposited. The depositor has to present the passbook to the post office at the time of depositing/receiving the interest/on maturity.
Tax Benefits
The amount that is deposited under Sukanya Samriddhi Account will be eligible for income tax exemption under Section 80C of Income Tax Act, 1961.
Monthly deposit Yearly contribution Total contribution Maturity value
for 14 years after 21 years
Rs 1,000 12×1,000= Rs12,000 Rs 1,68,000 Rs 6,07,128
Rs 2,500 12×2,500= Rs 30,000 Rs 4,20,000 Rs 15,17,820
Rs 5,000 12×5,000= Rs 60,000 Rs 8,40,000 Rs 30,35,640
Rs 7,500 12×7,500= Rs 90,000 Rs 12,60,000 Rs 45,53,460
Rs 10,000 12×10,000= Rs 1.2 lac Rs 16,80,000 Rs 60,71,280
Rs 12,500 12×12,500= Rs 1.5 lac Rs 21,00,000 Rs 75,89,103
