- Date : 05/02/2019
- Read: 4 mins
Do you know that if you invest in Sukanya Samriddhi Yojana for 20 days in a month, you can avail interest for the entire month?
Sukanya Samriddhi Yojana was launched in January 2015 by the Government of India with the aim of creating the habit of saving for the future of a girl child. The scheme was launched by PM Narendra Modi and falls under the Beti Bachao, Beti Padhao campaign.
Let’s take a closer look at some FAQs.
Who can open the account?
A Sukanya Samriddhi Yojana account can be opened by the parent or legal guardian of the girl child in her name. This account can be opened anytime until the child reaches the age of 10. Designated banks and post offices offer the facility.
Under this scheme, a parent or legal guardian can open two accounts, one for each daughter, in case they have two girl children.
How much can be deposited into the account?
In a financial year, a minimum of Rs 250 (with effect from 5th July 2018) needs to be deposited into the account. The maximum amount that can be put into the account in one financial year is Rs 1,50,000.
From the date the account is opened, deposits can be made for up to 15 years. Once the account matures, it earns interest as per the applicable rate.
What is the rate of interest?
The rate of interest is fixed on a quarterly basis by the Government. From January 1, 2018, to March 31, 2018, the interest rate was 8.1 per cent.
Can the account be closed prematurely?
In case of demise of the account holder, the account can be closed prematurely and the deposited amount along with interest will be paid to the parent/guardian of the account holder. Other than that, after completing five years, if you are eligible, the account can be closed.
Can an idle account be reactivated?
If the annual amount of minimum Rs 250 is not maintained, the account will become inactive. By paying a penalty of Rs 50 per year along with the minimum deposit, the account can be reactivated.
Is premature withdrawal allowed?
For meeting financial necessities of the account holder, such as marriage or higher education, once the girl turns 18 a premature withdrawal of 50 per cent of the balance of the previous financial year can be made. It will be necessary to present some documents to the person in charge – college admission letter, fee slip, etc. Moreover, the amount you can withdraw will be limited to actuals.
When will the account mature?
The account matures when the beneficiary gets married or once the account completes 21 years from the date of opening, whichever earlier. If the girl gets married before completing 21 years, the account will automatically close. Once the account matures, the amount will be given to the girl child.
What are the tax benefits?
One of the greatest advantages of Sukanya Samriddhi Account is that deposits of the account are exempted from taxes along with the fact that the proceeds and the maturity amount too would be exempted from taxes under Section 80C.
Are there any bonuses?
The scheme offers depositors a few extra perks:
1) If you deposit money into your Sukanya Samriddhi Yojana account before the 10th of every month, you will be eligible to receive the current rate of interest for that month. A deposit beyond the 10th will not earn any interest and will remain idle for that month. A small amount at first can compound very quickly into something much more.
For instance, if on April 10th you deposit Rs 10,000 and on April 12th you deposit Rs 50,000 in the account which has a pre-existing balance of Rs 10,000, then for that month you will get an interest on Rs 20,000 and not on Rs 70,000.
2) Sukanya Samriddhi Yojana makes you eligible for tax savings under Section 80C of the Income Tax Act. When you put money into your account early, the sum is deducted from your taxable income, bringing down your tax outgo for that month.
It’s time to start thinking about investing in a brighter and better future for your daughter. Open a Sukanya Samriddhi Yojana account in her name and secure her future!