Sukanya Samriddhi Yojana (SSY) comes under the small deposit scheme category and was initiated by the Government of India for the welfare of the girl child. Launched as a part of the ‘Beti Bachao Beti Padhao’ campaign, this scheme has become so popular owing to multiple benefits it provides including tax benefits. It comes with a maximum tax benefit of Rs 1.5 lakh under section 80C of the Income-tax Act. Further, the interest accrued and maturity amount are also exempt from tax.
Corporation Bank was one of the major public-sector banking companies headquartered in Mangalore, India and had a pan-Indian presence. Currently, the lender has a network of around 2,432 fully completely automated CBS branches, 3000+ ATMs, and 4,724 branchless banking units across the country. In the year 2019, Corporation Bank along with Andhra Bank was merged into the Union Bank of India, with all their branches becoming branches of the latter on 1 April 2020. The bank provides the option to secure your girl child future by opening a Sukanya Samriddhi Yojana with them. As per its name, Sukanya Samriddhi Account in Corporation Bank is only for girl children and offers a huge financial aid which can be utilized towards achieving higher education and/or fulfilling marriage needs after a certain age.
Account Opening: A maximum of two Corporation Bank Sukanya Yojana accounts are allowed for two girl children per family. Opening of three accounts is permissible in the case of the birth of twins/triplets. The account can be opened by parents or a legal guardian for a girl child until she attains the age of 10 years.
Deposit Amount: A Sukanya Samriddhi Yojana in Corporation Bank can be opened with as low as Rs. 250 per year and the maximum deposit can go up to Rs.1.5 lakh in a year. Deposits can be made through cash or cheque.
Tenure: The tenure for an SSY account in Corporation Bank is 21 years or until the girl child gets married after the age of 18. The account can be kept open for 21 years from the date of opening the account. Once this period is over, the Corporation Bank Sukanya Samriddhi account doesn’t earn any interest on it.
Eligibility: This scheme is only valid for a girl child who is an Indian resident. A girl child with non-resident Indian status won’t be allowed to have an SSY account under her name.
Partial Withdrawal Facility: A Sukanya Samriddhi Yojana in Corporation Bank allows the partial withdrawal facility once the girl child attains the age of 18 years. After that, 50% of the funds can be withdrawn for the purpose of higher education/marriage.
Account Revival: To keep the account in an active state, a minimum deposit of Rs. 250 is required every year till at least 14 years. If this requirement is not met in any year, the account will be deactivated and can be reactivated by paying a fee of Rs.50 along with the minimum deposit amount.
Corporation Bank provides a quick and hassle-free way of Sukanya Samriddhi Yojana account opening. Individuals that don’t have an account with Corporation Bank can also open an SSY account by submitting the following documents:
Applicants will have to provide some key details pertaining to the girl child. The parent/guardian details who is opening the account/making deposits on her behalf are also required. Given below the key details that are present in the SSY Application Form:
The below-given benefits are the most enticing reasons for people to consider opening a Sukanya Samriddhi Account with Corporation Bank.
High-interest rate: One of the major benefits of this scheme is the high Corporation Bank Sukanya Samriddhi Yojana interest rate. As of the current quarter, an interest rate of 7.6% per annum is provided by Corporation Bank on SSY account.
Compounding Benefit: The amount keeps earning compound interest at the rates mentioned in the scheme if not withdrawn even after the maturity period of 21 years.
Highly Affordable: The deposit amount is minimal which makes sure that every family can afford it without facing any difficulties.
Transferable: In case the account holder has to move to another place, 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.
Tax exemption: The funds deposited into Corporation Bank SSY account do not incur tax as per Section 80C of the Income Tax Act.