Central Bank of India Sukanya Samriddhi Yojana is a Government of India backed scheme designed exclusively for the girl child in a family. This scheme was initiated by the government to inculcate the habit of savings in parents/guardians of the girl child to build a corpus for her future education and marriage expenses. Under this scheme, a parent or legal guardian of a girl child can open an account in the name of their girl child until she reaches 10 years of age. This scheme is a part of “Beti Bachao – Beti Padhao” programme initiative of the Government of India.
Account Opening Criteria – A Central Bank of India Sukanya Samriddhi Yojana account can be opened by either biological parents or the legal guardians of a girl child through a minimum deposit of Rs.1,000. Two accounts are allowed in a family and a maximum of three accounts can be allowed in a family, in the case of the birth of twins/triplets. SSY Accounts can be opened at all the post offices and authorized bank branches across India.
Tenure: The tenure for an SSY account is 21 years or until the girl child marries after 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 Central Bank of India Sukanya Samriddhi account doesn’t earn any interest on it.
Age criteria – The account can be opened from a girl child’s birth until she attains an age of 10 years.
Deposit Criteria – A Sukanya Samriddhi Yojana in Central Bank of India can be opened with an initial deposit starting from as low as Rs. 1000 per year and a maximum deposit of Rs.1.5 lakh are allowed in a year. Deposits can be made through cash and/or cheques.
Eligibility Criteria: This scheme is only valid for a girl child who is a resident of India. Female children, non-resident Indian status are not allowed to have an SSY account under their name. In case a girl child acquires the non-resident Indian status post getting A Central Bank of India Sukanya Samriddhi Yojana account opened, her parents/legal guardian should inform the respective Central Bank of India branch about this change within 1 month and based on which, the account will be closed.
Partial Withdrawal – Once the girl child has attained the age of 18 years, 50% of the funds can be withdrawn from Central Bank of India Sukanya Samriddhi account for the purpose of higher education/marriage
Account Reactivation: A a minimum deposit of Rs. 1000 is required per year for at least 14 years to ensure the continuity of the account. If in any case this requirement is not met during any particular year, the account will be deactivated and can be revived by paying a fee of Rs.50 along with the minimum deposit amount.
Central Bank of India provides an easy and hassle-free way of opening an SSY account. Individuals that don’t have an account with Central Bank of India can also open an SSY account by submitting the following documents:
After opening the account, one can make deposits by cash, cheque or demand draft
The below-given benefits are the most enticing reasons for people to consider opening a Sukanya Samriddhi Account with Central Bank of India.
High-Interest Rate – As of 2020-21, an interest rate of 7.6% per annum is compounded and credited into the account every year.
Additional Interest – If the amount in the account is not withdrawn post the maturity period of 21 years, it will still keep earning compound interest at the rates mentioned in the scheme
Reasonable Deposit Amount – Made for every family, the nominal deposits of Rs. 250 per year can be afforded easily and allow a depositor to keep adding to the account without any difficulty.
Transfer option – In case the depositor decides to relocate, the account can be transferred to any other authorized bank or a post office in the new location and further actions pertaining to the account can be done locally in a hassle-free manner
Tax Exemption – The funds deposited into this account do not incur tax as per Section 80C of the Income Tax Act.
Ques. How to open A Central Bank of India Sukanya Samriddhi Yojana account?
Ans. You have to visit your nearest CBI (Central Bank of India) branch, where you will be assisted by a bank representative. Next, you will have to fill the SSY application and submit the required documents along with the minimum deposit of Rs.1,000. Once the documents are verified, the SSY account under the name of your girl child will be opened.
Ques. Can I open an SSY account with Central Bank of India of I don’t have a savings account in it?
Ans. Yes, you can open an SSY account even if you don’t have an account with Central Bank of India provided you are a legal guardian to a girl child and the other eligibility criteria are being met.
Ques. Can I avail loan facility under SSY?
Ans. No, loan facility is not provided under Sukanya Samriddhi Yojana.
Ques. Is premature closure of the Sukanya Samriddhi Yojana Account allowed?
Ans. Yes. Premature closure of the Sukanya account is permissible in certain cases. This may include reasons such as terminal illness or untimely death of the primary account holder, etc. However, you must consult the bank to check if there are certain specific conditions for the same.
Ques. Is there tax on SSY account interest?
Ans: No. SSY is a completely tax-exempt investment hence the principal amount, the interest earned as well as the maturity amount will all be exempted from tax.