Sukanya Samriddhi Yojana is a Sukanya Samriddhi account, in other terms it is well known as Girl child prosperity account. This has been launched by our prime minister Mr. Narendra Modi on 22 January, 2015. Now it has completed four years successfully.
The Government of India backed with saving scheme targeting the parents of girl children. The purpose to launch this scheme is to encourage and motivate the parents to build a fund for the future education and marriage expenses for their girl/female child.
This scheme was launched by the prime minister as a part of Beti Bachao, Beti Padhao campaign. This scheme in current scenario is providing interest rate of 8.4% and Income tax benefits. This account can be opened at any Indian post office or any branch of authorized commercial banks. Initially the interest rate was fixed to be 9.1% but later on it got changed to 9.2% in march 2015.
Interest rate now again got revised to 8.6%. The account can be opened in India anytime between the birth of a girl child and the time she would attain the 10-year age by the parent/guardian. In this scheme only one account is allowed per girl child whereas parents can open maximum of two accounts for each of their children except twins and triplets.
This account can be transferred to anywhere but within the India. The minimum amount required to open the account is 250 rupees that must be deposited in the account initially. But thereafter any amount in multiples of 100 rupees can be deposited in the account.
Although the maximum deposit limit is 150000 rupees. Initially this limit of 250 rupees was 1000 rupee, but now it is fixed to be 250 rupees. If this minimum amount of 250 rupees is not paid by the payer, then the fine of 50 rupees will be put on.
The girl herself can operate her account after she attains the age of 10.
The account allows the girl 50% withdrawal at the age of 18 years for higher education purpose only. Although the account reaches the maturity when girl attains 21 years of the account from the date of opening of the account. If the girl is over 18 and she is married, then the account automatically gets disclosed and interest is not earned on the amount even when it is in their account after marriage. That is the case of the normal closure.
This scheme is a small deposit scheme of the government of India. The SSY calculator can be used when one satisfies the eligibility criteria of the Sukanya Samriddhi scheme. That includes: Age of the girl child should not exceed 10 years, she should be a resident citizen of India, and last but not the least is account cannot be opened for more than two girl children in a single family.
One of the biggest and strongest reason for getting it popular is due to its tax benefits. It comes with a maximum tax benefit of rupees 1500000 under section 80C of the Income-tax Act.
The Reserve bank of India has authorized some of the banks to have account for Sukanya Samriddhi Yojana are
- Axis Bank
- Andhra Bank
- Allahabad Bank
- State Bank of India
- Bank of Maharashtra
- Bank of India
- Bank of Baroda
- State Bank of Patiala
- State Bank of Mysore
- Vijaya Bank
- State Bank of Hyderabad
- Indian Overseas Bank
- Indian Bank
- IDBI Bank
- ICICI Bank
- United Bank of India
- State Bank of Travancore
- Union Bank of India
- UCO Bank
- Punjab National Bank
- Syndicate Bank
- State Bank of Bikaner & Jaipur
- Punjab & Sind Bank
- Oriental Bank of India
- Dena Bank
- Corporate Bank
- Canara Bank
- Central Bank of India
These are the Banks authorized by the RBI.
This scheme is also coordinated same as by the LIC Jeevan Lakshya, LIC Jeevan Labh, LIC Jeevan Umang.
Among these three the LIC Jeevan Labh is a high bonus attracting Plan, and its premium need to be paid for less number of years than maturity year. This plan is related to the scheme of Sukanya Samriddhi Yojana as the ideal plan for planning child’s education and marriage is of this LIC Jeevan Labh. The features it provides are option to avail accidental benefit and term riders, paid premium are exempted from the income tax under section 80C same as under the SSY scheme and the maturity amount is tax free under 10 (10D).
The scheme under coordinating efforts of LIC Jeevan Lakshya is the plan of combination of both savings and protection as in SSY scheme for girl’s savings. Minimum amount fix in this plan is 100000 rupees and maximum can be any limit. This policy can be chosen in terms of 13 to 25 years and your premium payment circles can be selected monthly, quarterly, half yearly, and yearly. This plan same as SSY scheme free from tax. The premium paid for plans are exempted from taxation under section 80C of the Income Tax Act.
The scheme under coordinating efforts of LIC Jeevan Umang is an endowment cum whole life policy. This offers 8% of sum assured after the premium payment term but till you are alive or till the age of 100. The tax benefits are also availed in this scheme are same as SSY scheme i.e. free from taxation on premiums. The most important and beneficial aspect it provides are as follows: Provides high interest rate, it provides income tax savings, twenty-one year’s lock in period, it provides Guaranteed maturity benefits, and It gives interest even after maturity.
There are large number of benefits that can be availed through the Sukanya Samriddhi Yojana and some of the main or highlighted are discussed above in the paragraphs in brief. It can be concluded that one of the best way to build up a sufficient path for the children education plan whether that can be by following any of the policy or scheme that benefits you the most and provides a brighter future to your girl child.