Sukanya Samriddhi Yojana is an initiative taken by the Government of India which can be utilized by the parents/legal guardians of a girl child to secure their future by investing a small amount of money into the scheme. Parents can open up to two SSY accounts for their children and a third account can be opened in case of the birth of twins/triplets. The process of opening an SSY account at Bank of Baroda is very simple. The scheme provides income-tax benefit under section 80C and the returns from it are tax-free as well. SSY also helps parents to be assured that they have available funds for their daughters when they need it the most.
Also Read: Detailed about SSY Scheme
Key Features of Bank of Baroda Sukanya Samriddhi Yojana
Some important features of Sukanya Samriddhi scheme for Bank of Baroda are as follows:
Account opening: BOB Sukanya Yojana account can be opened only for a girl child who is at most 10 years old or younger. More than two accounts can also be opened in the case the daughters are twins or triplets.
Min and max deposits: The minimum and maximum deposits for this account are Rs. 250 to Rs. 1.5 lakhs per year. Please note that a minimum deposit of Rs. 250 has to be made every year.
Tenure of the deposit: The tenure for an SSY account is 21 years or until the girl child gets married after 18 years of age. The account can be kept active for a maximum of 21 years period from the account opening date. Once this period is over, the SBI Sukanya Samriddhi account doesn’t earn any interest on it. The minimum investment amount needs to be deposited every year for up to 15 years from the date of account opening. After that, the account will continue to earn interest till maturity.
Interest rate: The current interest rate offered by the government on BOB SSY is 7.6% per annum.
Withdrawal: A partial withdrawal of up to 50% of the account balance can be made once the girl child attains the age of 18 years. These funds can be utilized for the expenses of education or marriage.
Premature closure: The Sukanya Yojana BOB account cannot be closed prematurely except for certain special conditions like:
- If the account holder has an untimely demise
- If the account holder is unable to continue with the payments and can prove the same to the central government
- After maintaining the account payment for a continuous 5 year period from the opening of the account, premature closure is allowed in cases of extreme compassionate grounds such as medical support in serious diseases of the account holder or death of the guardian, supported by complete documentation.
Transfer options: The account can also be transferred from one bank to another or even to a post office.
Calculate you Investment Returns on Sukanya Samriddhi Yojana by Using SSY Calculator
How to open a Sukanya Samriddhi Yojana account in Bank of Baroda?
One can open aSukanya Samriddhi Yojana in Bank of Baroda easily. Individuals that don’t have an account with Bank of Baroda can open an SSY account by submitting the following documents:
- Birth certificate of the girl child
- Parents or legal guardian photo ID and address proof of for which Aadhar card, PAN Card, passport, ration card, driving license etc can be used
- Photograph of the child and parent
Stepwise Process to open an SSY account
- Get the BOB SSY account opening form from your nearest Bank of Baroda branch and fill it
- Submit the required documents along with photographs
- Deposit at least the minimum token amount (Rs. 250)
- Once the account is active, deposits can be made by cash, cheque or demand draft
BOB Sukanya Yojana Account Benefits
- Small amount of INR 250 is needed
You can open an SSY deposit with a minimum deposit as low as Rs. 250 which ensures that it’s affordable by all the parents/legal guardians of girl children. The minimum deposit was Rs. 1,000 before 5th July 2018.
- Helps to cover educational expenses
One of the major advantages of an SSY account is once the girl turns 18, 50% of the balance can be withdrawn to meet educational expenses. With proper proof of admission, these funds can be easily utilized for higher education.
- Triple tax benefits
Apart from the above-given benefits, this scheme offers a triple tax advantage:
- Deposits up to INR 1.5 lakh is eligible for a tax deduction under the Section 80C of IT Act
- The interest earned on the deposit is tax-free and is compounded annually
- Even the amount received upon maturity is tax-free
- Attractive interest rates
The rate of interest offered on SSY accounts is 7.6%, which is quite high for a savings scheme
- Deposit is only needed for 15 years
After 15 years, there is no need to make deposits until the deposit matures, which is 21 years from the date of account opening. You will continue earning interest on the deposit.
Bank of Baroda Sukanya Samriddhi Yojana – FAQs
Ques. Can I open two accounts of a single child?
Ans. No, you can’t open two accounts for one girl child. A depositor can open only one account in the name of the girl child.
Ques. What is the mode of deposit in Sukanya Samriddhi Yojana Bank of Baroda?
Ans. The deposit towards the SSY account can be made in cash or by cheque or demand draft
Ques. What are the details recorded in the SSY passbook?
Ans. When the account is opened and active, the depositor is given a passbook which has details such as date of birth of the girl child, account opening date, account number, address and name of the account holder and the amount deposited.
Ques. Can the account be opened under the name of an NRI girl child?
Ans. No. Only resident Indian girl children are eligible for an SSY account.