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.
Union Bank of India, one of the largest government-owned banks in the country, provides the option to open to secure your girl child’s future by opening a Sukanya Samriddhi Yojana with them. As the name suggests, As per its name, Sukanya Samriddhi Account in UBI 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.
Key Features of UBI Sukanya Samriddhi Account
Account Opening: A maximum of two Union Bank of India Sukanya Yojana accounts are 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.
Deposit Criteria: A Sukanya Samriddhi Yojana in Union Bank of India can be opened with a minimum deposit of Rs. 1000 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 cheque.
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 21 years from the date of opening the account opening date. Once this period is over, the Union Bank of India 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 is not allowed to have an SSY account under her name.
Partial Withdrawal Facility: A Sukanya Samriddhi Yojana in Union Bank of India allows the partial withdrawal facility once the girl child attains the age of 18 years. Post that, 50% of the funds lying in the account can be withdrawn from Union Bank of India Sukanya Samriddhi account for the purpose of higher education/marriage
Account Revival: As mentioned earlier, a minimum deposit of Rs. 250 is required every 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 Union Bank of India?
Union Bank of India provides a quick and hassle-free way of Sukanya Samriddhi Yojana account opening. Individuals that don’t have an account with UBI can also open an SSY account by submitting the following documents:
Documents required to open an SSY account in Union Bank of India
- Girl child’s birth certificate
- Photo ID of parents or legal guardian
- Photograph of the child and parent (applicant)
Stepwise Process to open an SSY account
- Get the account opening form from the branch and fill all the required details
- Submit the documents along with photos
- Deposit the amount (Minimum. Rs. 250)
- Once the account is active, you can make the deposit by cash, cheque or demand draft
How to Fill Union Bank of India SSY Application Form?
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:
- 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 present in the ID document of parent/guardian)
- Any other KYC Documents details (such as PAN, Voter ID card, etc.)
Benefits of Sukanya Samriddhi Account with UBI
The below-given benefits are the most enticing reasons for people to consider opening a Sukanya Samriddhi Account with Punjab National Bank.
High-interest rate: One of the major benefits of this scheme is the high UBI Sukanya Samriddhi Yojana interest rate. As of 2020-21, an interest rate of 7.6% per annum is provided by UBI 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.
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 UBI SSY account do not incur tax as per Section 80C of the Income Tax Act.
Union Bank of India – Frequently Asked Questions
Ques. Can I avail loan facility under SSY?
Ans. No, loan facility is not provided under the Sukanya Samriddhi Yojana scheme.
Ques. What is the mode of deposit in Sukanya Samriddhi Yojana Bank?
Ans. The deposit towards the SSY account can be made through cash, cheque or demand draft
Ques: Is premature closure allowed under Sukanya Samriddhi Yojana scheme?
Ans: Yes, Sukanya Samriddhi Yojana account in UBI permits the premature closure of SSY account. The reasons can include any chronic illness or untimely demise of the primary account holder, etc.
Ques. What happens in the case the girl child who is the beneficiary meets with an untimely death?
Ans. In case the girl child meets an untimely death, the Sukanya Samriddhi Account under her name is discontinued and closed and the proceeds are transferred to the guardian or parent of the girl child.