All you need to know about
Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana (SSY) is
a small deposit scheme for the girl child launched as a part of the 'Beti
Bachao Beti Padhao' campaign. It is currently (2016-17) fetching an interest
rate of 9.1 per cent and provides income-tax benefit.
A Sukanya Samriddhi Account can
be opened any time after the birth of a girl till she turns 10, with a minimum
deposit of Rs 1,000. A maximum of Rs 1.5 lakh can be deposited during the
ongoing financial year (FY16-17).
The account can be opened in any
post office or authorised branches of commercial banks.
The account will remain operative
for 21 years from the date of its opening or till the marriage of the girl
after she turns 18.
To meet the requirement of her
higher education expenses, partial withdrawal of 50 per cent of the balance is
allowed after she turns 18.
The government, via Notification
No. G.S.R.863(E) dated December 2, 2014, has notified the Sukanya Samriddhi
Account Rules, 2014, which came into force with effect from the same day.
What are the rules for opening
Sukanya Samriddhi Account?
The account can be opened by the
natural or legal guardian in the name of the girl from her birth till she turns
10.
A depositor may open and operate only
one account in the name of the girl child under these rules. One can't open two
accounts for one girl.
The birth certificate of the girl
in whose name the account is opened should be submitted by the guardian at the
time of the opening of the account in the post office or bank, along with other
documents relating to identity and residence proof of the depositor.
How much can be deposited in the
account?
The account can be opened with an
initial deposit of Rs 1,000 and thereafter, any amount in multiple of Rs 100
can be deposited, subject to the condition that a minimum of Rs 1,000 will be
deposited in a financial year, but the total money deposited in an account on a
single occasion or on multiple occasions will not exceed Rs 1,50,000 in a
financial year.
Deposits in the account can be
made till the completion of 15 years, from the date of the opening of the
account. For a 9-year-old, deposits have to continue till the child turns 24.
Between ages 24 and 30 (when the account matures), the account keeps earning
interest on the balance.
An irregular account where the
minimum amount has not been deposited may be regularised on payment of a
penalty of Rs 50 per year, along with the minimum specified subscription for
the year (s) of default. If the penalty is not paid, the entire deposit,
including those made before the date of default, will receive interest at post
office savings bank account rate, which is currently 4%. If excess interest has
been paid, it will be reversed.
What is the mode of deposit?
The deposit in the account can be
made in cash or by cheque or demand draft and an endorsement on the back of
such instrument has to be made and signed by the depositor, indicating the name
of the account holder and the account number in which the deposit is to be
credited.
Deposits may also be made through
electronic means (e-transfers) in the concerned post office or banks if there
is CBS (core banking solutions) availability in them.
In case the deposit is made by
cheque or demand draft, the date of encashment of the cheque or demand draft is
the date of credit to the account, while for e-transfer, it is the date of
deposit.
How is the interest rate on
deposits calculated?
The government fixes interest
rates on quarterly basis based on the G-sec yields. The interest rate spread
that the SSY enjoys over the G-sec rate of comparable maturity is 75 basis
points.
The interest rate since its
launch is as follows:
From April 1, 2014: 9.1%
From April 1, 2015: 9.2%
From April 1, 2016 -June 30,
2016: 8.6%
From July 1, 2016 -September 30,
2016: 8.6%
From October 1, 2016-December 31,
2016: 8.5%
Interest at the rate, to be
notified by the government, compounded yearly will be credited to the account.
In case the account holder opts
for monthly interest, the same will be calculated on the balance in the account
on completed thousands, in the balance which will be paid to the account holder
and the remaining amount in fraction of thousand will continue to earn interest
at the prevailing rate. For monthly interest, only the amount in thousands
(rounded off) will be considered, the balance will continue earning interest at
prevailing rate.
The interest will be calculated
for the calendar month on the lowest balance in an account on the deposits made
between the close of the 10th day and the end of the month.
How does the account operate?
The account is opened and
operated by the natural or legal guardian of the girl child in her name till
she turns 10.
When she turns 10, the girl child
can operate the account herself, however, deposit in the account may be made by
the guardian or any other person or authority.
Under what circumstances can the
account be closed prematurely?
In the event of death of the
account holder, the account will be closed immediately on the production of a
death certificate issued by the competent authority, and the balance in the
account will be paid, along with the interest till the month preceding the
month of the premature closure of the account, to the guardian of the account
holder.
In any other case, a request for
the premature closure of an SSY account can be put forward after the completion
of five years of the account opening. This too will be allowed, as per the
rules, on extreme compassionate grounds such as medical support in
life-threatening diseases. Still, if the account has to be closed for another
reason, it will be allowed, but the entire deposit will only get interest of a
Post Office Savings Bank account.
What all is recorded in the
passbook?
When an account is opened, the
depositor is given a passbook bearing the date of birth of the girl child, date
of opening of the account, account number, name and address of the account
holder and the amount deposited.
The passbook will be presented to
the post office or bank, as the case may be, at the time of depositing money in
the account and receiving payment of interest, and also at the time of final
closure of the account on maturity.
Can the account be transferred?
Yes, the account can be
transferred anywhere in India if the girl child in whose name the account has
been opened shifts to a place other than the city or locality where the account
stands.
The transfer is free of cost on
furnishing the proof of shifting of residence of either the parent/guardian or
account holder. If no such proof is submitted then the applicant has to pay Rs
100 to the post office or the bank to which the transfer is made.
The transfer can happen electronically
if the post office or bank has access to CBS.
What are the rules for partial
withdrawal?
To meet the financial
requirements of the account holder for the purpose of higher education and
marriage, withdrawal of up to 50 per cent of the balance at the credit of the
account at the end of preceding financial year is allowed. However, the
withdrawal will be allowed only when the account holder turns 18.
For this, not just a written
application, but documentary proof in the form of a confirmed admission offer
in an educational institution or a fee slip from such institution clarifying
that such financial requirement, is required. Further, the withdrawal amount
will be restricted to the actual demand of fee and other charges required at
the time of admission as shown in the offer of admission or the relevant fee
slip issued by the institution.
When will the account mature?
The account matures on the
completion of 21 years from the date of opening or whenever the girl child gets
married, whichever is earlier, subject to the following:
*It is also provided that where
the marriage of the account holder takes place before the completion of such
period of 21 years, the operation of the account will not be permitted beyond
the date of her marriage.
*Provided further that where the
account is closed before the completion of 21 years, the account holder will
have to give an affidavit to the effect that she is not below 18 as on the date
of closing of account. On maturity, the balance, including the interest
outstanding in the account, will be payable to the account holder on the
production of withdrawal slip along with the passbook.
Can the account be opened in the
name of an NRI girl child?
A girl child is eligible for an
SSY account only if she is a resident Indian citizen when the account is
opened, and remains so until the maturity or the closure of account.
Non-resident Indians can no
longer open an SSY account. In fact, if you or your child's residential status
changes to non-resident or she takes up another country's citizenship during
the term of the scheme, no interest shall be paid from the date of citizenship
or residential status changes and the account will be considered closed.
What are the tax benefits
available in the scheme?
Currently, SSY offers the highest
tax-free return with sovereign guarantee and comes with the
exempt-exempt-exempt (EEE) status. The annual deposit (contributions) qualifies
for Section 80C benefit and the maturity benefits are non-taxable.
Sukanya Samriddhi Yojana:
Important watchouts before you invest
S ource: Information has been
collected from the Ministry of Finance notification and the RBI website, and
presented in manner that a lay reader can understand.
Disclaimer
Only those rules which hugely
impact the buying decision are mentioned here. For complete information, you
need to contact the issuer while applying for the scheme. Also, rules are
subject to change and accordingly impact the buying decision.
Terms related to Sukanya
Samriddhi Account
'Depositor' means an individual
who, on behalf of a minor girl child of whom he or she is the guardian,
deposits money in an account under the rules.
'Post office' means any post
office in India doing savings bank work and authorised to open an account under
these rules.
'Bank' means any branch of a
commercial bank authorised by the central government to open an account under
these rules.
'Guardian' is any person who is
either the father or mother of the girl child or a person entitled under law to
take care of property of minor until she turns 18.
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A guide on how to open a Sukanya
Samriddhi Account
Updated : Dec 08, 2016, 04.17 PM
IST
A Sukanya Samriddhi Account can
be opened in any authorised post office branch or authorised branches of
commercial banks. Generally, all banks that provide the facility to open a
Public Provident Fund (PPF) account offer one for Sukanya Samriddhi Yojana (SSY)
too.
Documents required to open a
Sukanya Samriddhi Account
The following documents are
required:
*Sukanya Samriddhi Account
Opening Form.
*Birth certificate of the girl
child (account beneficiary).
*Identity proof of the depositor
(parent or legal guardian), i.e., PAN card, ration card, driving licence,
passport.
*Address proof of the depositor
(parent or legal guardian), i.e., passport, ration card, electricity bill,
telephone bill, driving licence.
A sample of the form can be Downloaded here .
One may also get the application
form from the post office or the bank where the account has been opened.
Getting a passbook:
Once the account is opened, the
issuer gives a passbook. Here's a sample .
Transactions:
Standing instructions can be given
either at the branch or set through Netbanking for automatic credit to Sukanya
Samriddhi Account.
Source: Information has been
collected from the Ministry of Finance notification and the RBI website, and
presented in manner that a lay reader can understand.
Disclaimer:
Only those rules which hugely
impact the buying decision are mentioned here. For complete information, you
need to contact the issuer while applying for the scheme. Also, rules are
subject to change and accordingly impact the buying decision.
Terms related to Sukanya
Samriddhi Account:
'Depositor' means an individual
who, on behalf of a minor girl child of whom he or she is the guardian,
deposits money in an account under the rules.
'Post office' means any post
office in India doing savings bank work and authorised to open an account under
these rules.
'Bank' means any branch of a
commercial bank authorised by the central government to open an account under
these rules.
'Guardian' is any person who is
either the father or mother of the girl child or a person entitled under law to
take care of property of minor until she turns 18.
