This article cover scheme rules, details, interest rate, eligibility, age limit, maturity and withdrawal rules of Sukanya Samriddhi Yojana in FAQ format. You can also download the calculator in excel format.
What is Sukanya Samriddhi scheme?
Sukanya Samriddhi Scheme is a small savings scheme launched by the Government of India under ‘Beti Bachao Beti Padhao’ inititiave. The scheme was launched in 2015 for girl child. Since then the scheme has been gaining huge popularity. This is a long term debt scheme which can help the girl child for her higher education and marriage related expenses.
Deposits in Sukanya Samriddhi account may be made till the completion of fourteen years, from the date of opening the account.
Sukanya Samriddhi Yojana Details
Who is eligible for Sukanya Samriddhi Yojana?
A girl child (Indian Resident) between the age of 0-10 years is eligible for Sukanya Samriddhi Yojana.
What is the minimum amount of Sukanya scheme?
An account can be opened by depositing Rs 250 with the required documents (Note: earlier, the minimum amount was Rs. 1000). The minimum amount that can be deposited in a Sukanya Samriddi Scheme is Rs. 250 per annum. The maximum limit is Rs. 1.5 Lakhs per annum for an account.
What is the age limit for Sukanya Samriddhi Yojana?
The age limit for Sukanya Samriddhi Yojana is 0-10 years.
What is the maturity period of Sukanya Samriddhi Yojana?
The maturity period of Sukanya Samriddhi Yojana is 21 years. For example: If you open an account when the girl child is 8 years old, the account will mature when she will turn 29.
What is the interest rate of Sukanya Samriddhi Yojana?
The interest rate of Sukanya Samriddhi account changes quarterly. Government of India decides the interest rates. Currently, the interest rate is at 8.5% for the period between 1st January 2019 till 31st March 2019.
Can we withdraw money from Sukanya Samriddhi account?
Yes, you can withdraw money from your Sukanya Samriddhi account.
Also Read: PPF Account Withdrawal Rules
When can we withdraw money from Sukanya Samriddhi account?
You can withdraw money from Sukanya Samriddhi account when the girl child turns 18 years old. There are 2 rules for withdrawal:
- Partial Withdrawal – Maximum 50% of the balance (of the preceding year) can be withdrawn for the higher education of girl child. However, you will need to produce actual fee receipts to claim the same.
- Complete Withdrawal – After the completion of 21 years from date of opening the account or on marriage of the girl child, whichever is earlier. However, the account holder needs to provide an affidavit stating that she is not below the age of 18 at the time of closing the account.
How can we close Sukanya Samriddhi account?
In the unfortunate event of death of the account holder, the scheme can be closed immediately by producing the death certificate.
Yes, the Sukanya Samriddhi account can be closed after 5 years. The pre-closure request can be made after 5 years of opening the account. This request is only considered under extreme compassionate grounds like life threatening disease.
Is Sukanya Samriddhi part of 80C?
Yes, Sukanya Samriddhi Yojana is part of 80C. However, the maximum limit for exemption is 1.5 Lakhs under Section 80C.
Is interest on Sukanya Samriddhi account taxable?
No, the interest on Sukanya Samriddhi account is not taxable. The scheme comes under EEE category
- Exempt at the time of investment
- Also Exempt at the time of accumulation
- Exempt at the time of withdrawal.
Can NRIs invest in Sukanya Samriddhi Yojana?
No, NRIs cannot invest in Sukanya Samriddhi Yojana. However, if the girl child is an Indian Resident, parents can open Sukanya Samriddhi Account for her.
How many accounts can be opened?
Maximum 2 accounts be opened for two girl children. You cannot open 2 accounts for one girl child.
You can open third account in the event of birth of twin girls as second birth or if the first birth itself results into three girl children, on production of a certificate to this effect from competent medical authorities where the birth of such twin or triplets occurred.
Can we increase the amount in Sukanya Samriddhi Yojana?
If the annual deposit is less than 1.5 Lakhs per annum per account, then you can increase the limit up to 1.5 Lakhs.
Can I deposit more than 1.5 lakh in Sukanya samriddhi Yojana?
No, the maximum limit is 1.5 Lakhs per account. You cannot deposit more than 1.5 Lakhs in a single account. But if you have 2 account, you can deposit 1.5 Lakhs in each account, however, the tax benefits would be available only for a maximum amount of 1.5 Lakhs under section 80C.
How can I open account in Sukanya samriddhi Yojana?
You can open Sukanya Samriddhi Account either through post office or from the list of 28 authorized banks.
Which banks offer Sukanya samriddhi account?
You can check the list of authorized banks here:
What are the documents required for Sukanya samriddhi account?
The following document are required to open the scheme
- Account Opening Form
- Birth Certificate of Girl Child
- Address Proof of Parents/Gurdian
- ID proof of guardian/parents
How can I check my Sukanya Samriddhi account?
You can check Sukanya Samriddhi Account online if your bank/post office has core banking facility. Otherwise, you can update your passbook by visiting nearest branch of your bank/post office.
Can we open Sukanya Samriddhi Yojana account online?
No, you cannot open Sukanya Samriddhi account online. Currently, authorized banks and post offices are not allowed to open the account online.
Can I transfer money online to Sukanya Samriddhi account?
Yes, you can pay your future installments online by giving standing instructions to the bank.
Can I open Sukanya Samriddhi account online in ICICI Bank?/HDFC Bank?
No, you can not open Sukanya Samriddhi account online in ICICI Bank/HDFC Bank.
Which bank is best for Sukanya Samriddhi Yojana?
Since, the Government of India decides the interest rates of the scheme , it makes no difference in which bank you would want to open an account. Choose a bank that you are comfortable with.
Sukanya Samriddhi Yojana Penalty
An irregular account where a minimum amount of Rs. 250 has not been deposited may be regularised on payment of a penalty of fifty rupees per year.
Can Sukanya Samriddhi account be transferred from post office to bank?
Yes, you can transfer the account anywhere in India if the girl child in whose name the account stands shifts to a place other than the city or locality where the account stands.
Also, You can transfer Sukanya Samriddhi Account from post office to bank. You can go through the process by clicking on the link
Also Read: Process to transfer from Post Office to Bank
What is the benefit of Sukanya Samriddhi scheme?
Following are the benefits of Sukanya Samriddhi scheme –
- Interest rates are high than most of the debt-oriented schemes like bank deposit and FDs. Also, interest rates will always be .5% higher than the PPF.
- Since it’s a debt scheme by Govt. of India, chances of defaults are Nil.
- Tax benefits under Section 80C
- Scheme comes under EEE as explained above
Drawback of Sunkaya Samriddhi Account
Let’s see, what are the drawbacks of Sukanya Samriddhi Account –
- Lock in period is high in this scheme. You can not withdraw money till the girl child is 18 years old.
- You can withdraw only 50% at the time of higher education.
- After completion of 21 years, no interest is payable in this scheme.
- Interest rates may higher today but may not be in the same range for long periods.
- Maturity proceeds would be in the hands of Girl Child. Also, Girl Child can operate the account after the age of 10 years.
Sukanya Samriddhi Calculator 2019
You can download Sukanya Samriddhi Calculator 2019 by clicking on the below link
Is it good to invest in Sukanya Samriddhi Yojana?
Yes, it is good to invest in Sukanya Samriddhi Yojana. If you are more inclined towards debt instruments for your daughter`s education and marriage, it seems to be the best instrument. The scheme offers better returns than any other debt investments like insurance, bank deposits and even debt mutual funds.
But, is it advisable to create the entire corpus for your daughter needs by investing in this scheme? Because you can get better returns in equity mutual funds.
Also Read: Best Multicap Mutual Funds to invest in 2019
Suppose your daughter`s education goal is 15 years away. You can have a 60:40 equity/debt allocation. For equity, you can consider SIP in equity mutual funds and for debt part Sukanya Samriddhi Yojana is the best option.
Also Read: Sukanya Samriddhi Scheme RBI Notification
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