Initiated as a part of the government’s ‘Beti Bachao, Beti Padhao’ campaign, Sukanya Samriddhi Yojana or SSY is a welfare scheme designed for the girl child. Investing in Sukanya Samriddhi Yojana in Canara Bank allows parents or legal guardians to ensure financial security for a girl child aged ten years or below. Under the Sukanya Samriddhi Yojana, an account in the name of the girl can be opened across any of the private and public sector banks for a tenure of 21 years.
Key Features of Canara Bank SSY Account
Account: The account can be opened by a girl child’s parents or legal guardians before the girl child attains 10 years of age.
Tenure: The tenure of investment under SSY is 21 years or until the girl child gets married after she attains the age of 18. The account can be kept active for a maximum period of 21 years from the account opening date. Once this period is over, the Canara Sukanya Samriddhi account doesn’t earn any interest on it.
Age criteria – The account can be opened until the girl child attains the age of 10 years.
Deposit Criteria – A Sukanya Samriddhi Yojana in Canara Bank can be opened with an initial deposit starting from as low as Rs. 250 per year and the maximum amount that can be deposited goes up to Rs.1.5 lakh in a year. The deposits can be made either through cash and/or cheque.
Eligibility Criteria: This scheme is only valid for Indian residents. Female children with non-resident Indian status are not allowed to open an SSY account with Canara Bank. However, if in case the account holder acquires non-resident Indian status after opening the account, her parents/legal guardian must give an intimation to the respective branch about this change within 1 month, based on which, the account will be closed.
Partial Withdrawal – Canara Bank SSY account allows withdrawal of 50% of the funds from the Canara Sukanya Samriddhi account once the girl child has attained 18 years of age. This fund can be utilized for the purpose of higher education/marriage of the girl child.
Account Reactivation: A deposit of at least Rs. 250 is required per year for a minimum of 15 years to continue the account. If in case, the depositor is not able to make the deposit of a minimum amount in a year, the account gets deactivated. However, it can be revived by paying Rs.50 as a penalty fee for the lapsed year and the minimum annual deposit of Rs.250 per year for the years in default and also Rs.250 for the current year in which it is being activated.
Tax Exemption: The amount invested in SSY can be deducted from the taxable income up to Rs. 1.5 lakh per year under Section 80C of the Income Tax Act. Interest earned on SSY and the amount on maturity are also tax-free.
How to open a Sukanya Samriddhi Yojana account in Canara Bank?
Opening an SSY account with Canara bank is extremely easy and hassle-free. Individuals without an account in Canara Bank can also open an SSY account by submitting the following documents:
Documents required to open an SSY account in Canara
Birth certificate of the Girl child
Photo ID of parents or legal guardian who is opening the account on behalf of the girl child
Photograph of the child and parent (applicant)
Stepwise Process to open an SSY account
- Obtain the account opening form from the branch and fill in all the required fields
- Submit all the required documents along with photos
- Deposit the amount (Min. Rs. 250)
- Once the account is active, one can make deposits by cash, cheque or demand draft
Benefits of Sukanya Samriddhi Account with Canara
Having an SSY account with Canara bank can bring you multiple benefits; some of them are listed below:
- The SSY can provide a high-interest rate with tax exemption. As of 2020-21, the interest rate provided under the SSY Scheme is 7.6% per annum.
- The deposit amount (minimum being Rs 250) is highly affordable and one can afford it without facing any difficulties.
- The account is transferable, which means, if in case, the account holder has to shift to some other city or locality, the account can be transferred to any other authorized bank or a post office in the new location and further actions can be done locally.
Canara Sukanya Samriddhi Account – Frequently Asked Questions
Ques. Can I avail loan facility against SSY account?
Ans. No, loan facility is not provided under Sukanya Samriddhi Yojana.
Ques: Is premature closure allowed under Sukanya Samriddhi Yojana scheme?
Ans: Yes, Sukanya Samridhhi Yojana account in Canara Bank permits the premature closure of SSY account subject to some conditions. The reasons for the same can include any serious disease or untimely demise of the primary account holder, etc.
Ques. How many SSY accounts can be opened under for a single beneficiary?
Ans. A beneficiary can open a single account either in the bank or a post office.
Ques. What happens in case extra money is deposited in the Canara SSY account than allowed?
Ans. Even if the deposit of more than 1.5 lakhs in any financial year is accepted due to any accounting error, it won’t be eligible for any interest further. This extra amount (excluding 1.5 lakh) can be withdrawn anytime by the depositor.
Ques. How to make SSY payments?
Ans. One can make payment to their Canara Bank Sukanya Samriddhi Account online through if there is an active internet banking account and also through cash or cheque.