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SBI Sukanya Samriddhi Yojana

Government of India has introduced an extra-ordinary scheme known as Sukanya Samriddhi Yojana for the prosperity and empowerment of girl child in India. In this article, we shall learn about the features and benefits of investing in this scheme.

The Sukanya Samriddhi Yojana is a scheme introduced by the government of India with an idea to mobilize and promote savings, especially for the girl child. This scheme is introduced exclusively for the welfare of girl child. Under this scheme, the parents or the legal guardian of the girl child can open the Sukanya Samriddhi Yojana (SSY) account in the name of the girl until she is 10 years old. The main motive of the SSY scheme is to create a financial corpus for the girl child which can be utilized for her higher education, marriage etc. The introduction of this scheme is done under the ‘Beti Bachao Beti Padhao’ initiative which is run by the Indian Government. Indian Government through this scheme is showing its dedicated efforts to empower the girl child by giving an attractive opportunity to her parents or legal guardians to build fund for her. The scheme, apart from helping to create corpus, also acts as a tax saving instrument as the parents or legal guardian can claim tax benefit under Section 80C of the Income Tax Act. The scheme offers tax benefits up to Rs. 1.50 Lakhs and attractive high interest rates as compared to other savings instruments or schemes available in the market

Features of SBI Sukanya Samriddhi Yojana

The Sukanya Samriddhi Yojana scheme is a well curated savings-cum-investment instrument that helps in building a strong corpus for the future financial needs of the girl child. The scheme offers distinct key features as under:

  • The Sukanya Samriddhi account can be opened in the name of girl child till she attains the age of TEN years
  • Only ONE account can be opened in the name of the girl child; multiple accounts are not allowed
  • You can open the Sukanya Samriddhi Yojana account in either post office or in branch of a notified bank like State Bank of India
  • For opening the Sukanya Samriddhi Yojana account, birth certificate is a mandatory document
  • One of the most important features of the Sukanya Samriddhi Yojana account is that the account can be opened with a minimal deposit amount of Rs. 1000. Once the account is opened, thereafter any amount in the multiple of Rs 100 can be deposited in this account.
  • To keep the Sukanya Samriddhi Yojana account active, it is mandatory that the parent or legal guardian needs to deposit a minimum Rs 1000 per financial year.
  • The rate of interest to be accrued on the invested corpus shall be notified by the government of India from time to time.
  • The interest rate is calculated on a yearly basis on the accumulated corpus and is compounded to the Sukanya Samriddhi Yojana account i.e. the interest accrued on the principal of 1st year shall be added to the principal amount at the end of the year and this total amount shall be considered as the principal amount for the next year and the interest shall be calculated thereon.
  • The maximum deposit amount under the Sukanya Samriddhi Yojana account is capped to Rs. 1.50 Lakhs.
  • Withdrawals from the Sukanya Samriddhi Yojana account are restricted, however one withdrawal is allowed only when the account holder i.e. the girl child attains 18 years of age. This withdrawal is allowed for meeting the expenses of the girl child-like higher education or marriage expenses.
  • The amount of withdrawal allowed at the time when the account holder attains 18 years of age is subject to 50% of the accumulated corpus i.e. half of the balance amount available at the time of credit of interest in the account of the preceding financial year.
  • The Sukanya Samriddhi Yojana account shall mature on the completing 21 years commencing from the date of opening of the Sukanya Samriddhi Yojana account. In case, where the marriage of the girl child takes place before completion of 21 years the account shall be closed and no further operations in the account shall be permitted.
  • Only Parents or legal guardian of a girl child are eligible to open the Sukanya Samriddhi Yojana account
  • The Sukanya Samriddhi Yojana account can be opened for a max. of TWO girl children; however, exemptions are offered in cases like triplets or twins provided the parents or legal guardian are able to provide supporting medical certificate from authorized medical hospital / institutions.
  • The parents or legal guardian can open the Sukanya Samriddhi Yojana account only for girl child who are Indian residents. Kindly note, the Sukanya Samriddhi Yojana account cannot be opened in the name of the girl child who is a non-resident Indian, even if her parents or legal guardian are resident Indians.
  • In case after opening the Sukanya Samriddhi Yojana account, the girl child becomes a non-resident Indian, then the parents or legal guardian needs to convey the change in residential status of the girl child to SBI within ONE month. Upon change in the residential status of the account holder, the account shall be closed.
  • Deposits in the account are permitted till the completion of 14 years starting from the date of opening the Sukanya Samriddhi Yojana account. This is the maximum period up to which contributions can be deposited in the account.
  • The current rate of interest offered on the Sukanya Samriddhi Yojana account is 8.60% with effect from 1st April 2016.
  • Premature closure is allowed in case of death of the account holder, the account shall be closed immediately or on compassionated grounds like medical emergency like treatment of life-threatening disease.
  • In case of irregular payment, revival of account is necessary. For revival of the Sukanya Samriddhi Yojana account can be done by paying penalty of Rs 50 for every year + the minimum mandatory deposit amount i.e. Rs 1000 per year i.e. if you fail to deposit amount in the Sukanya Samriddhi Yojana account for 2 consecutive years, then the applicable charges for reviving the account is Rs 100 (50 Rs 2 Years) + Rs 2000 (1000 per year 2 years) = Rs 2100.
  • The contribution to the Sukanya Samriddhi Yojana account can be done via various payment modes namely Cash / Cheque / Demand Draft / Online Transfer through Internet Banking. The mode of payment can be opted as per the convenience of the depositor.
  • SBI customers can set up auto debit via standing instruction at any SBI bank Branch or through online banking channel.
  • Upon opening the Sukanya Samriddhi Yojana account, passbook shall be given. The passbook shall bear all the details of the account holder like Name of the Girl Child, Address of the girl child, Date of Birth of the girl Child, date of opening the account and the amount deposited at the time of opening of the account. It is mandatory to retain this passbook till the maturity of the account. Thus, above are the key salient features of the State Bank of India Sukanya Samriddhi Yojana account.

Documents required to open SBI Sukanya Samriddhi Yojana account

Following is the list of mandatory documents required for opening SBI Sukanya Samriddhi Yojana account:

  • Birth Certificate of the girl child
  • Recent color photograph of the girl child
  • Address Proof of Parents or Legal Guardians
  • Identity Proof of Parents or Legal Guardians
  • Recent color photographs of Parents or Legal Guardian
  • Duly filled application form (Form SSA-1)
  • In case the girl child is adopted, relevant documents like adoption certificate must be submitted
  • In case of twins or triplets, relevant medical certificate must be duly attached

Details about SBI Sukanya Samriddhi Yojana at a glance

Following table illustrates a quick synopsis of all the details, features and benefits of the Sukanya Samriddhi Yojana account at a glance -

Key ParametersParticulars
ObjectiveThe objective of the scheme is to promote welfare of the girl child
Who can open accountParent or Legal Guardian of the girl child
Minimum and Maximum age to open accountThe account can be opened as soon as girl child is born the maximum age for opening the account is until the girl child is 10 years old
Number of AccountsUnder this scheme only one account per girl child can be opened. Additionally, the Parent or Legal Guardian can open a maximum of 2 accounts for their 2 girl children (in case of twins or triplets 3 accounts)
Minimum and Maximum deposit amount The minimum amount required to open the account is Rs 1000 thereafter the contributions can be made in multiples of Rs 100, while the maximum deposit amount under this account is capped to Rs 1.50 Lakhs
Tenure of the accountThe account matures in 21 years from the date of opening of the Sukanya Samriddhi Yojana account
Tax RebateCan be availed under section 80C of the Income Tax Act, 1961
Mode of paymentThe contribution to the account can be made via cash/cheque/DD/Internet Banking

Step by step process to open a Sukanya Samriddhi Yojana account

The account opening procedure of Sukanya Samriddhi Yojana account is very simple and easy. The account can be opened by following the below given procedures:

  • Completely fill the application form
  • Attach the all the relevant related documents
  • Submit the application form to the nearest post office or state bank branch along with minimum initial deposit in cash of Rs. 1000
  • Upon opening the account, the subsequent contributions in the Sukanya Samriddhi Yojana account can be made through cash / cheque / demand draft / online transaction.

Thus, in this manner, the parent or legal guardian of the girl child can open SSY account in the name of the girl child and help her in building her financially strong future.

Conclusion

To conclude we can say, Sukanya Samriddhi Yojana account is one of the best investment instruments which can be utilized as saving-cum-investment tool for creating a financial corpus for your girl child. This scheme is developed to mobilize and promote parents / legal guardians’ savings towards future financial security of the girl child. Investing in this scheme ensures that ample fund is created to tackle the future financial expenses of girl child, especially marriage and higher education.

FAQs on SBI Sukanya Samriddhi Yojana

Does the applicant need to have an existing account for opening Sukanya Samriddhi Yojana in SBI?

No, it is not mandatory for the parents or legal guardian or girl child to hold any account in SBI. A Sukanya Samriddhi account can be opened independently in the name of the girl child without holding any other type of account in SBI.

What is the minimum deposit required to open an SBI Sukanya Samriddhi Yojana account?

The minimum deposit amount required for opening the Sukanya Samriddhi Yojana account is Rs 1000. Kindly note, the initial deposit amount must be deposited in cash, thereafter the depositor can deposit the contribution via cheque/DD/ internet Banking/ cash as per their convenience.

Whom should you contact to open a Sukanya Samriddhi Yojana in SBI Branch?

You can visit the nearest SBI bank branch where the designated executive shall help you in opening the account. You can also open the account online via SBI’s website.

What is the process to open a Sukanya Samriddhi Yojana in SBI?

The procedure of opening the Sukanya Samriddhi Yojana account is very simple and quick. You can open the account either online or by visiting the nearest SBI bank branch. Following are the simple steps involved for opening the account

  • Submit a duly filled application form
  • Attach recent passport sized photographs of girl child and parents / legal guardians
  • Attach Birth Certificate of the girl child
  • Attach address proof of the parent / legal guardian
  • Attach identity proof of the parent / legal guardian
  • Submit the initial minimum deposit amount of Rs. 1000 in cash

Upon submitting all the above-mentioned relevant documents, the Sukanya Samriddhi Yojana account shall be opened in the name of the girl child.

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