Sukanya Samriddhi Yojana is an initiative taken by the Government of India which can be utilized by the parents/legal guardians of a girl child to secure their future by investing a small amount of money into the scheme. Parents can open up to two SSY accounts for their children and a third account can be opened in case of the birth of twins/triplets. The process of opening an SSY account at UCO Bank is very simple. The scheme provides income-tax benefit under section 80C and the returns from it are tax-free as well. SSY also helps parents to be assured that have available funds for their daughters when they need it the most.
Some important features of Sukanya Samriddhi scheme for UCO Bank are as follows:
Account opening: UCO Bank Sukanya Yojana account can be opened only for a girl child who is at most 10 years old or younger. More than two accounts can also be opened in the case the daughters are twins or triplets.
Min and max deposits: The minimum and maximum deposits for this account are Rs. 250 to Rs. 1.5 lakhs per year. Please note that a minimum deposit of Rs. 250 has to be made every year.
Tenure of the deposit: The tenure for an SSY account is 21 years or until the girl child gets married after 18 years of age. The account can be kept active for a maximum of 21 years period from the account opening date. Once this period is over, the UCO Sukanya Samriddhi account doesn’t earn any interest on it. The minimum investment amount needs to be deposited every year for up to 15 years from the date of account opening. Thereafter the account will continue to earn interest till maturity.
Interest rate: The current interest rate offered by the government on UCO Bank SSY is 7.6% per annum.
Withdrawal: A partial withdrawal of up to 50% of the account balance can be made once the girl child attains the age of 18 years. These funds can be utilized for the expenses of education or marriage.
Premature closure: The Sukanya Yojana UCO Bank account cannot be closed prematurely except for certain special conditions like:
Transferable: The account can also be transferred from one bank to another or even to a post office.
One can open a Sukanya Samriddhi Yojana in UCO Bank easily. Individuals that don’t have an account with UCO Bank can open an SSY account by submitting the following documents:
You can open an SSY deposit with a minimum deposit as low as Rs. 250 which ensures that it’s affordable by all the parents/legal guardians of girl children. The minimum deposit was Rs. 1,000 before 5th July 2018.
One of the major advantages of an SSY account is once the girl turns 18, 50% of the balance can be withdrawn to meet educational expenses. With proper proof of admission, these funds can be easily utilized for higher education.
Apart from the above-given benefits, this scheme offers a triple tax advantage:
The rate of interest offered on SSY accounts is 7.6% currently, which is quite high for a savings scheme
After 15 years, there is no need to make deposits until the deposit matures, which is 21 years from the date of account opening. You will continue earning interest on the deposit.