The SBI Sukanya Samriddhi Yojana is a Government of India-backed scheme designed exclusively for the girl child in a family. This scheme was 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, thus empowering the female ratio of the population.
As per 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 ten years of age. This scheme is a part of the “Beti Bachao – Beti Padhao” program initiative of the Government of India.
The best thing about Sukanya Yojana in SBI is it also offers income tax benefits to the account holder under Section 80C for an amount of up to Rs 1.5 Lakhs. It is also known to offer a higher rate of interest as compared to other small savings schemes.
Account Opening Criteria – An SBI 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 SBI Sukanya Samriddhi account doesn’t earn any interest in 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 SBI can be opened with an initial deposit starting from as low as Rs. 250 per year and a maximum deposit of Rs.1.5 lakh is 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 with 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 an SBI Sukanya Samriddhi Yojana account opened, her parents/legal guardian should inform the respective SBI 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Partial Withdrawal – Once the girl child has attained the age of 18 years, 50% of the funds can be withdrawn from the SBI Sukanya Samriddhi account for the purpose of higher education/marriage
Account Reactivation: A minimum deposit of Rs. 250 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
This is the process of how to open a Sukanya Samriddhi account online in SBI.
SBI provides an easy and hassle-free way of opening of SSY account. Individuals that don’t have an account with SBI can open an SSY account by submitting the following documents:
(i) Fill up the account opening form which can be obtained from the branch
(ii) 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
The below-given benefits are the most enticing reasons for people to consider opening a Sukanya Samriddhi Account with the State Bank of India.
High-Interest Rate – As of 2021-22, 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 is highly affordable and allow a depositor to keep adding to the account without burning a hold in the pocket
Transferability – 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.
The merit of an investment is always chosen by how much the investment grows in the tenure. Utilizing the SSY Calculator you can analyze the returns from investment in the scheme but just enter the interest rate, principal, tenure, and more.
Ques. How to open an SBI Sukanya Samriddhi Yojana Account?
Ans. You have to visit your nearest State Bank of India (SBI) branch, where you will be assisted by a bank representative. Next, you will have to fill out 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 SBI if 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 SBI provided you are a legal guardian to a girl child and the other eligibility criteria is being met.
Ques. Can I avail loan facility under SSY?
Ans. No, the 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.