All about Sukanya Samriddhi Yojana Scheme

To build the women of the future, the Central Government has launched several girl child schemes. Sukanya Samriddhi Yojana Scheme is one such scheme that aims to strengthen the societal position of women by educating girl children.

Continue reading to know about the Sukanya Samriddhi Yojana Scheme in detail!

This scheme, which was initiated as a part of the Beti Bachao Beti Padhao campaign, the Sukanya Samriddhi Yojana is a government-backed small savings scheme. The scheme is entirely dedicated to a girl child and aims to provide the education and marriage expenses of a girl child.

Parents can open the Sukanya Samriddhi account after the birth of a girl child till she reaches the threshold of 10 years.

A Sukanya Samriddhi account can be opened in post offices or authorized branches of the designated banks.

Below is mentioned some of the essential Sukanya Samriddhi Yojana details.

• Interest rate: Like other small saving schemes (Public Provident Fund, Senior Citizen Savings Scheme), the Sukanya Samriddhi Yojana interest is revised/changed quarterly. Currently, it fetches an interest rate of 8.2% per annum (the Q4 financial year 2023-24) and is compounded annually.
• Maturity period: Another Sukanya Samriddhi Yojana feature is that such an account has a maturity period of 21 years from its opening date or till the girl marries after she turns 18.
• Min account opening amount: The scheme allows account opening with a minimum amount of ₹250. Previously the amount was ₹1000.
• Minimum deposit amount: Parents can deposit a minimum of ₹250 and a maximum of ₹1.5 lakhs during the current financial year. Earlier, the minimum deposit amount was ₹1000. The revised rule came into effect in July 2018.
• Tax rebate: Sukanya Samriddhi Yojana Scheme facilitates tax rebates under 80C of the Income Tax Act, 1961.
• Note: The interest earned and the maturity amount are also exempted from tax.
• Deposit period: Sukanya Samriddhi Yojana Scheme allows parents to deposit in the account till the completion of 15 years from the opening date. For instance, if the Sukanya Samriddhi account was opened on 6th October 2016, deposits can be made till 6th October 2031. After the designated period, further deposits will not be allowed and will only generate interest as per the ongoing rates fixed by the government.
• Withdrawal facility: This government-backed scheme enables partial withdrawal to fund educational or marriage expenses when the account holder turns 18.
• Premature closure: Sukanya Samriddhi Yojana Scheme also allows premature closure of Sukanya Samriddhi Yojana accounts under special circumstances.

Sukanya Samriddhi Yojana benefits are diverse. Some of these are mentioned below-

• Assured returns: One of the benefits of the Sukanya Samriddhi Yojana is that it is a government-backed scheme. Thus, it provides assured and safe returns on investment.
• Increased interest rates: Contrary to other government-backed schemes such as Public Provident Fund, the Sukanya Samriddhi Yojana Scheme offers an increased interest rate.
• Convenient investment options: This scheme enables individuals to deposit as per their financial standing. To be precise, individuals can start investing with a minimum and maximum amount of ₹250 and ₹1.5 lakhs, respectively.
• Savings on tax: Sukanya Samriddhi Yojana Scheme offers savings on taxes upon a contribution of ₹1.5 lakhs in a financial year.
• Easy account transfer facility: The scheme ensures an easy account transfer facility from one region, part of the country to another, i.e.,  from one bank or post office to another in cases of transfer of the parents/legal guardians handling the account.
• Advantage of compounding: The prime advantage of annual compounding is that even a small savings scheme like the Sukanya Samriddhi Yojana Scheme can become a good long-term investment instrument and guarantee decent returns. In short, the longer the tenure, the higher the returns.

Now you know what the benefits of the Sukanya Samriddhi Yojana are!

As stated earlier, parents can open a Sukanya Samriddhi account in the name of a girl child below 10 years. However, both the girl child and parents have to fulfill certain eligibility criteria. Discussed below are the eligibility for the Sukanya Samriddhi Yojana account both for a girl child and for parents separately.

Parents must remember that the Sukanya Samriddhi Yojana maximum age limit is 10 years!

Sukanya Samriddhi Yojana Scheme eligibility for a girl child

• Only a girl child is eligible to open an account under the Sukanya Samriddhi Yojana Scheme.
• The age of the girl child should be less than 10 years.

Sukanya Samriddhi Yojana Scheme eligibility for parents

• Parents and legal guardians can open a Sukanya Samriddhi account on behalf of the girl child.
• One parent or legal guardian can open a maximum of 2 accounts. 

Note: In the case of triplets or twins, any parent or legal guardian can open three accounts.

With eligibility comes the documentation of the Sukanya Samriddhi Yojana Scheme. Following is a list of the required documents to open this account.

• Birth certificate of the girl child
• Proof of address of a parent or a legal guardian
• Photo ID of a parent or the legal guardian
• KYC documents such as PAN, Voter ID

Sukanya Samriddhi Yojana withdrawal rules allow for up to 50% of the account balance at the end of the financial year. The withdrawal can be allowed only for two reasons, namely higher education and marriage.

However, the withdrawal will be allowed only after the girl turns 18 or if she has passed the 10th standard, whichever comes first. In addition, the account holder has to furnish documentary proof (confirmed admission letter from education institute or fee-slip from similar institutes justifying the financial requirement).

Sukanya Samriddhi Yojana Scheme is devised with a maturity period of 21 years from the date of opening. However, premature closure of the Sukanya Samriddhi Yojana account is allowed on special grounds. Such as- 

• Sukanya Samriddhi Yojana closure is allowed for the intended marriage after submitting the required documents.
• The account will be closed prematurely in the event of the sudden death of the account holder. In such cases, a death certificate has to be provided.
• Depositors can opt for Sukanya Samriddhi Yojana’s premature closure after the completion of five years from the day of opening on special grounds such as medical treatment for life-threatening diseases.
• If depositors choose to close the Sukanya Samriddhi account for another reason other than mentioned above, they can do so. However, the total deposit amount will generate a return on the post office savings bank account interest rate.