Sukanya Samriddhi Yojana

With the motive of upliftment of girl child status in the society, the Sukanya Samriddhi Yojana was launched by GoI as a part of Beti Bachoa Beti Padhao in 2015 under the Ministry Of Women And Child Development by the Honourable Prime Minister Narendra Modi. In addition to the above motive the scheme also serves as a savings scheme for the parents of girl child. This scheme is meant to encounter educational and marital outlays of a girl child.

The scheme enrols some rules as Sukanya Samriddhi Account Rules, 2014 which are enlisted on National Savings Institute website, which are briefed below:

• Account can be opened within the name of a resident citizen girl child until she attains the age of 10 years.
• Only one account can be opened in the name of one girl child. Sukanya Samriddhi Account can be opened for maximum of 2 girls only.
• Account can be opened in post office and branches of banks authorised.
• The deposits must be made every year till the completion of 14 years from the date of opening of account.
• Birth certificate of girl child must be submitted in whose name the account is opened.
• Account can be opened with a minimum of Rs 250/- and henceforth any amount in multiple of Rs100/- can be deposited in a financial year.
• Maximum Rs 1,50,000/- can be deposited in a financial year.
• Interest rates are notified by the government from time to time will be calculated on yearly compounded basis and credited to the account.
• One withdrawal shall be allowed on attainting the age of 18 years of account holder to meet education expenses up to 50% of the balance at the credit of preceding financial year.
• The account can be transferred anywhere in India from one post office/ bank to another.
• The account shall mature on completion on the marriage of account holder or on completion of 21 years from the date of opening of account whichever is earlier.

Tax Planning Tool

Besides serving the very purpose of the holding scheme it is also a lucrative option for tax savings investment plan. It provides with the tax savings of Rs. 1,50,000/- at maximum under section 80C along with an exemption over the interest accrued and maturity value.

Interest Rate Under Sukanya Samriddhi Account

The interest rates under this scheme are calculated and revised as per the trending market scenario. The rate of interest on an average for FY 19-20 was 8.4%. Now from April 2020 , onwards the rate of interest has declined from 8.4 to7.6% p.a.

The calculation of benefits or returns on Sukanya Samriddhi Account depends upon the investment you have done and the prevailing interest rate.

The following is elucidated via an example :

Deposit amount:  Rs 1,00,000

Number of deposits per year: 1

Deposit period: 14 years

Maturity period: 21 years

Rate of interest: 8.5%

As per the calculation with a total deposit of Rs. 14 lakhs, you can earn an interest of Rs. 34, 20, 499 and a maturity value of Rs. 48,20,499/-

Closure / Withdrawal of Sukankya Samriddhi Account

• • Premature Closure: The account shall be closed in case of death of the account holder and the balance amount with the interest will be paid to the guardian of the account holder.
  • Withdrawal of Amount: In case of any requirements like higher education or marriage, withdrawal upto 50% is permitted when the girl child attains the age of 18 years.
  • Closure on Maturity: The account shall mature on completion on the marriage of account holder or on completion of 21 years from the date of opening of account whichever is earlier.

Thus the scheme fulfils the two very targets of securing girl child future and a handy tax tools with one arrow of rules and scheming.