Sukanya Samriddhi Yojana,How Sukanya Samruddhi Yojana Can Secure Your Daughter’s Future
How Sukanya Samruddhi Yojana Can Secure Your Daughter’s Future
The Sukanya Samruddhi Yojana, also known as the Girl Child Prosperity Scheme, is a government-sponsored initiative that provides a secure future for the daughter of a family. Launched by the Prime Minister of India in 2015, it has become one of the most popular savings plans in the country. The scheme encourages parents to invest in their daughters’ futures, and in return, provides an attractive rate of interest on the deposits made. In this blog post, we will discuss how Sukanya Samruddhi Yojana can help secure your daughter’s future.
Understanding Sukanya Samriddhi Yojana
Sukanya Samruddhi Yojana is a government-backed savings scheme launched in India as a part of the ‘Beti Bachao, Beti Padhao’ campaign. This scheme aims to promote the welfare of girl children and help parents save for their future needs such as education and marriage expenses.
Under this scheme, parents or legal guardians of a girl child can open a savings account in her name until she reaches the age of 10. The account can be opened in any post office or authorized bank.
The scheme has a tenure of 21 years or until the girl child’s marriage, whichever is earlier. The account can be opened with a minimum deposit of Rs. 250, and the maximum deposit limit is Rs. 1.5 lakh per financial year.
The scheme offers an attractive interest rate of 7.6% per annum, which is compounded annually. The interest earned and the principal amount are tax-free, making it an ideal investment option for parents looking to secure their daughter’s future.
Overall, the Sukanya Samruddhi Yojana is an excellent investment scheme that helps parents save for their daughter’s future and provides numerous benefits. With the rising costs of education and weddings, investing in this scheme is a wise decision that parents can make for their daughter’s better future.
Eligibility Criteria for Sukanya Samriddhi Yojana
To avail the benefits of Sukanya Samriddhi Yojana, there are certain eligibility criteria that need to be fulfilled.
1. Age Limit: The scheme can be availed for a girl child who is below 10 years of age at the time of opening the account.
2. Number of Accounts: Only one account can be opened for each girl child. In case there are more than two daughters in a family, then two accounts can be opened, but only if the first account has twin girls as beneficiaries.
3. Citizenship: The account can be opened for a girl child who is an Indian citizen.
4. Maximum Deposit: A minimum of Rs. 250 and a maximum of Rs. 1.5 lakhs can be deposited in the account annually.
5. Tenure: The account has a tenure of 21 years from the date of opening the account, or until the girl child gets married, whichever is earlier.
6. Partial Withdrawal: The account holder can withdraw up to 50% of the balance after the girl child attains 18 years of age, for the purpose of higher education or marriage expenses.
It is important to note that if the account holder fails to deposit the minimum amount of Rs. 250 in any financial year, then the account will be considered as “deactivated”. In such cases, the account can be reactivated with a penalty of Rs. 50 per year and payment of minimum deposit amount.
Overall, the eligibility criteria for Sukanya Samriddhi Yojana are fairly simple and straightforward, making it an accessible scheme for parents who wish to secure their daughter’s future. Another important point to note is that only the girl child can operate the account once she reaches 10 years of age. This empowers her to take control of her financial future and helps in creating a sense of financial responsibility from a young age.
Sukanya Samruddhi Yojana is an excellent scheme that aims to provide financial security to the girl child and ensure her education and marriage expenses are covered. Parents who are planning to save for their daughter’s future should definitely consider this scheme as it not only offers attractive interest rates but also comes with tax benefits. In the next section, we will explore the various benefits that parents and daughters can enjoy under Sukanya Samruddhi Yojana.
Benefits of Sukanya Samriddhi Yojana for Parents and Daughters
Sukanya Samruddhi Yojana is a government-backed savings scheme that offers a range of benefits for parents and daughters alike. Here are some of the key advantages:
1. Long-term financial security: By investing in Sukanya Samriddhi Yojana, parents can provide their daughters with a financial cushion that can support their education, marriage, and other important milestones in life. With a lock-in period of 21 years, the scheme offers a long-term investment horizon that can help parents plan for their child’s future needs.
2. High interest rates: Sukanya Samriddhi Yojana currently offers an interest rate of 7.6% per annum, which is significantly higher than most other savings schemes in the market. This can help parents grow their investment over time and maximize their returns.
3. Tax benefits: Contributions made to Sukanya Samriddhi Yojana are eligible for tax deductions under Section 80C of the Income Tax Act. Additionally, the maturity amount and interest earned are tax-free, which can provide additional savings for parents.
4. Low investment threshold: To open a Sukanya Samriddhi Yojana account, parents need to make a minimum deposit of only Rs. 250. This makes it an accessible savings scheme for families across income levels.
5. Easy accessibility: Sukanya Samriddhi Yojana accounts can be opened at any post office or authorized banks, making it easy for parents to access the scheme and start saving for their daughters’ future.
Overall, Sukanya Samriddhi Yojana offers a range of benefits that can help parents secure their daughters’ future and provide them with the financial stability they need to succeed in life. By taking advantage of this scheme, parents can make a valuable investment in their child’s future that can pay off in the long run.
How to Open an Account Under Sukanya Samriddhi Yojana
To open an account under Sukanya Samruddhi Yojana, you need to visit any post office or authorized banks such as SBI, ICICI, or HDFC Bank. It is essential to note that only one account can be opened for each girl child and a maximum of two accounts can be opened for two daughters of the same parents. Here’s how you can open an account under Sukanya Samruddhi Yojana:
Step 1: Visit the post office or bank with the necessary documents such as your daughter’s birth certificate, ID proof of the parents or legal guardian, and address proof.
Step 2: Fill out the application form provided by the bank or post office and attach the required documents. You can also download the application form online from the official website of the Sukanya Samruddhi Yojana.
Step 3: Deposit a minimum amount of Rs. 250 to activate the account. The maximum limit for depositing money is Rs. 1.5 lakhs per financial year.
Step 4: Once the account is opened, you will receive a passbook where all transactions related to the account will be recorded. You can also track your account online by registering on the official website of the Sukanya Samruddhi Yojana.
In case you wish to open an account for your second daughter, you can repeat the above process with the necessary documents. However, it is essential to note that the maximum limit of two accounts applies to a family and not an individual. Therefore, you cannot open more than two accounts for two daughters if they are from different parents or legal guardians.
Opening an account under Sukanya Samruddhi Yojana is an easy process that can secure your daughter’s future. It not only provides higher returns on your investment but also comes with numerous tax benefits. So, take the first step today and secure your daughter’s future with Sukanya Samruddhi Yojana.
Contribution and Withdrawal Rules of Sukanya Samriddhi Yojana
Once you have opened an account under the Sukanya Samruddhi Yojana, you can make contributions towards it as per the rules set by the government. The minimum contribution required is Rs. 250 and the maximum amount that can be deposited in a year is Rs. 1.5 lakhs. This amount can be deposited either in a lump sum or in installments, but the total amount cannot exceed the maximum limit.
The account can be operated by the parent or guardian of the girl child until she reaches the age of 18. After that, she can manage the account on her own. Partial withdrawal is allowed when the girl child reaches the age of 18, but only up to 50% of the balance amount at the end of the previous financial year. The withdrawal can only be made for the purpose of the girl child’s education or marriage.
Full withdrawal is allowed when the girl child attains the age of 21 and has completed her education. The balance amount, including the interest, will be paid to the girl child. In case of the unfortunate event of the death of the girl child, the account can be closed, and the entire amount will be paid to the parent or guardian.
It is important to note that if the account is not operational for a period of 15 years from the date of opening, it will be considered as an inactive account. The account can be reactivated on the payment of a penalty fee of Rs. 50 per year, along with the minimum contribution amount for each year of the account being inactive.
Overall, the contribution and withdrawal rules of Sukanya Samruddhi Yojana are flexible and can be helpful in securing your daughter’s future. It is a great saving scheme that not only ensures a bright future for your daughter but also provides tax benefits.
Tax Benefits Associated with Sukanya Samriddhi Yojana
Comparison of Sukanya Samriddhi Yojana with Other Saving Schemes
Frequently Asked Questions (FAQs) on Sukanya Samriddhi Yojana
1. What is Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana is a government-backed saving scheme that aims to secure the future of girls by promoting their education and marriage.
2. Who is eligible to open a Sukanya Samriddhi account?
Parents or guardians of a girl child below the age of 10 years can open a Sukanya Samriddhi account in her name.
3. What is the maximum limit for depositing money in the Sukanya Samriddhi account?
The maximum limit for depositing money in the Sukanya Samriddhi account is Rs. 1.5 lakh per financial year.
4. Can a person open more than one Sukanya Samriddhi account for multiple daughters?
Yes, a person can open multiple Sukanya Samriddhi accounts for each of their daughters, but the total amount deposited cannot exceed Rs. 1.5 lakh per financial year.
5. What is the lock-in period for a Sukanya Samriddhi account?
The lock-in period for a Sukanya Samriddhi account is 21 years from the date of opening the account or until the marriage of the girl child after she attains the age of 18 years.
6. Can the deposited amount be withdrawn before the maturity period of 21 years?
Yes, the amount can be withdrawn prematurely in case of the unfortunate demise of the account holder, or if the account holder needs the funds for her higher education.
7. Is there any tax benefit associated with Sukanya Samriddhi Yojana?
Yes, investments made under Sukanya Samriddhi Yojana are eligible for tax exemption under Section 80C of the Income Tax Act.
8. How does Sukanya Samriddhi Yojana differ from other saving schemes like PPF or FD?
Sukanya Samriddhi Yojana is specifically designed for the girl child and provides higher interest rates and tax benefits compared to other saving schemes like PPF or FD.