The Indian Overseas Bank Sukanya Samriddhi Yojana is a Government of India backed savings scheme designed for the girl child in a family. It is a part of “Beti Bachao – Beti Padhao Yojana” and as initiated to inculcate the habit of savings in parents/guardians of the girl child to build a corpus for her future education and marriage expenses. It can be opened by the parent or legal guardian of a girl child until she reaches ten years of age.
Key Features of Indian Overseas Bank Sukanya Samriddhi Account
A maximum of two Indian Overseas Bank Sukanya Yojana accounts is allowed per family. Opening of three accounts can be allowed 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 an age of 10 years.
A Sukanya Samriddhi Yojana in Indian Overseas Bank can be opened with a minimum deposit of 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 and/or cheques.
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 21 years from the date of opening the account opening date. Once this period is over, the Indian Overseas Bank Sukanya Samriddhi account doesn’t earn any interest on it.
This scheme is only valid for a girl child who is an Indian resident. A girl child with non-resident Indian status is not allowed to have an SSY account under her name.
An IOB Sukanya Samriddhi Yojana account allows the partial withdrawal facility once the girl child attains the age of 18 years. Post that, 50% of the funds can be withdrawn from Indian Overseas Bank Sukanya Samriddhi account for the purpose of higher education/marriage
As mentioned earlier, a minimum deposit of Rs. 250 is required per year till at least 14 years to keep the account in an active state. If this requirement is not met in a year, the account will be deactivated and can be reactivated by paying a fee of Rs.50 along with the minimum deposit amount
How to open a Sukanya Samriddhi Yojana account in Indian Overseas Bank?
Indian Overseas Bank provides an easy and hassle-free way of opening of SSY account. Individuals that don’t have an account with Indian Overseas Bank can open an SSY account by submitting the following documents:
How to fill Indian Overseas Bank SSY Application Form?
Applicants need to provide some key details regarding the girl child. Details of the parent/guardian who is opening the account/making deposits on her behalf are also required. The following are the key details that are present in the SSY Application Form:
- Name of the Girl Child (Primary Account Holder)
- Name of the biological Parent/Guardian opening the account (Joint Holder)
- Initial deposit amount
- Cheque/Demand Draft Number and Date (used for an initial deposit)
- Date of Birth of girl child
- Birth Certificate details of the primary account holder (Certificate number, date of issue, etc.)
- Photo and address proof Details of Parent/Guardian (Driving License, Aadhaar, etc.)
- Present and Permanent Address (as per ID document of parent/guardian)
- Any other KYC Documents details (such as PAN, Voter ID card, etc.)
Stepwise Process to open an IOB Sukanya Samriddhi Account
(i) Get the account opening form from the Indian Overseas Bank or you can download it online from the Indian Indian Overseas Bank portal. You can check some other Indian Overseas Bank Sukanya Yojana details as well.
(ii) Fill in the required details and submit the documents along with photos
(iii) Deposit cash (Minimum of Rs 1,000
(iv) After opening the account, one can make deposits by cash, cheques or demand draft
Benefits of Sukanya Samriddhi Account with Indian Overseas Bank
- An Indian Overseas Bank Sukanya Samriddhi Yojana account offers a plethora of benefits which is why it has become one of the most popular savings schemes
- An interest rate of 7.6% per annum is compounded as of 2020-21 and credited into the account every year.
- If the amount is not withdrawn after the maturity period of 21 years, it will still keep compounding the interest as per the rates
- The Indian Overseas Bank SSY Account is transferable In case the depositor decides to relocate. the account can be transferred to any other authorized Indian Overseas Bank in the new location and further actions
- The funds deposited into this account are eligible for a tax deduction as per Section 80C of the Income Tax Act.
Indian Overseas Bank Sukanya Samriddhi Account – FAQs
Ques. Does SSY provide loan facility?
Ans. No, loan facility is not provided under Indian Overseas Bank Sukanya Samriddhi Yojana account.
Ques. Is partial withdrawal facility available in Indian Overseas Bank SSY account?
Ans. Yes, but only after the account holder (girl child) reaches the age of 18. After the account holder reaches the age of 18, partial withdrawal up to 50% of the account balance is allowed, to meet the education expenses or marriage expenses.
Ques: Is premature closure of the Sukanya Samriddhi Yojana Account allowed?
Ans: Yes. Premature closure of the Sukanya account is allowed but is subject to certain conditions. This may include reasons such as the untimely demise of the primary account holder or any other conditions where they are unable to continue the account such as financial stress. However, proper permission from the designated authority must be obtained to process the closure and settlement of the account.
Ques. Is the interest earned on SSY taxable?
Ans: No. SSY is a completely tax-exempt investment and hence the principal amount, the interest earned and the maturity amount are all be exempted from tax.