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Sukanya Samriddhi Yojana (SSY) or a Sukanya Samriddhi account is a scheme launched by the honorable Prime Minister of India, Mr. Narendra Modi in 2015. This scheme is a part of the “Beti Bachao, Beti Padhao” campaign. The sole motive of this savings scheme is to encourage parents to start saving money, so that their daughters can get the necessary education or even fund their marriage when the time comes. The scheme can be opened for any girl child who is less than 10 years old. However, there is a restriction when it comes to the number of accounts that a family can open under this scheme. You can open one account per girl child, but to a maximum of two accounts per household. The parents of a girl or their legal guardian can open a Sukanya Samriddhi account and start saving money.
You must deposit a minimum of INR 1,000 for a fiscal year under this scheme and go all the way up to INR 1,50,000. The account and its benefits are available until the child turns 21 years or gets married after reaching the legal marriage age of 18 years. The earlier occurrence is taken into consideration.
The Sukanya Samriddhi Yojana (SSY) resembles the Public Provident Fund (PPF) in more ways than one. For starters, the interest rates for the SSY account is decided by the government and the banks must adhere to it. The SSY also offers quite a few tax benefits.
The scheme intends to provide financial assistance to girls when they need it for their education or even marriage. Here are some of the salient features of the HDFC Bank Sukanya Samriddhi account.
Apart from the above features, the Sukanya Samriddhi offers a lot of other benefits as well for their subscribers. Here are some of the prominent ones-
The Sukanya Samriddhi offers one of the highest interest rates among various saving schemes in the country. HDFC bank Sukanya Samriddhi offers very high interest rates of 8.4%. The interest rate is compounded yearly, thus providing you with healthy returns over a longer period of time. In fact, the interest rates are higher than standard government-based yields over a 10 year duration.
On maturity of the account, you can still earn interests as long as you do not withdraw the amount. The interest rates mentioned above would still continue.
The Sukanya Samriddhi account offers tax exemption benefits, which is one of its pillars of success. Any amount that you deposit under this scheme is tax deductible under Section 80C of the Income Tax Act. Thus, your deposits are exempt from any taxes up to a maximum of INR 1,50,000 per financial year. On maturity, the interests that you earn are also non-taxable.
The intent of the scheme is to help girls with their education or marriage. Parents cannot withdraw the amount for their personal use. The maturity benefits and the amount in the account can only be accessed by the child.
There is a lot of flexibility when it comes to keeping the account active for this scheme. You can open your HDFC Sukanya Samriddhi by paying just Rs. 100 and not Rs. 1000 as it was earlier. And there are no restrictions when it comes to regular deposits post that, as long as the deposits are in the multiples of Rs. 100. Once your daughter reaches the age of 10 years, she can start operating the account.
This is one of the most impressive features of the Sukanya Samriddhi account. The account has a default lock-in period till your daughter turns 21. The only other condition where the account would no longer be held is if the girl gets married after attaining the legal age of 18 years. The account allows for one premature withdrawal when the girl child reaches 18 years for further education. However, it is limited to 50% of the total amount.
Here are all the documents that you would need to open a Sukanya Samriddhi account.
To open your Sukanya Samriddhi account with HDFC Bank, you would need to take the following steps.
There aren’t a lot of limitations that you have to be aware of before opening a Sukanya Samriddhi account for your daughter. The eligibility for opening the account is as follows.
The Sukanya Samriddhi account is a smart and sensible way to invest in the future of your daughter. Here are the important details of the SSY account with HDFC Bank.
The account would mature on the completion of 21 years. On maturity, HDFC bank would provide the deposits along with the proceeds once she provides the following documents to the bank.
What is the age limit for opening an SSY account?
An SSY account can be opened by parents or legal guardians of a girl anytime before she reaches 10 years. The account will continue to be active till she turns 21 or gets married, whichever is earlier, provided she has reached the legal marriage age. An account under the scheme cannot be opened after the girl is 10 years old.
Is the interest earned on SSY taxable?
Any interest that you earn on the scheme account is non-taxable. In fact, there are more tax benefits than this. The principal amount invested every year for the account is also exempt from taxes under Section 80C which adds to the benefit for the scheme.
Is it possible to deposit money online to SSY account?
Yes. You can transfer money from your savings account to SSY account without any hassles. Also, you can create a standing instruction with your bank to transfer amount on a regular basis.
What is the interest rate of a Sukanya Samriddhi account?
The interest rates associated with Sukanya Samriddhi keeps might change from time to time. Currently, the interest rate on the account is 8.4% per annum. The government announces the interest rate every quarter along with other schemes like PPF.
When can I withdraw money from Sukanya Samriddhi account?
On the completion of 21 years, the account matures and thus, you can withdraw the amount. The account stands terminated on getting married after the legal age of 18 years. Alternatively, you can withdraw up to 50% of the total account amount on completion of 18 years to pay for your education.
Is there an upper limit to the amount that I can deposit?
Yes. You can deposit up to Rs. 1,50,000 for a financial year and not a rupee more. The minimum amount that you must deposit for a year is Rs. 100.
Where can I open a Sukanya Samriddhi account?
You can reach out to any HDFC bank branch to open the account or visit your nearest post office.
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