Do you know the salient features of Sukanya Samriddhi Account? If you are planning to open SSY account for your girl child, then you must be aware about all the details regarding Sukanya Samriddhi Account interest rate for 2016-17, premature withdrawal/ closure rules and list of authorized banks along with 17 other Sukanya Samriddhi Yojana features.
Earlier in 2015 Prime Minister of India Mr. Narendra Modi has launched Sukanya Samriddhi Yojana Account under Beti Bachao Beti Padhao campaign. This is a small deposit scheme which can be opened only for the girl child in India. With this initiative Mr. Modi wants to spread awareness about the girl child in our society.
SSA Account is mainly targeted towards the education and marriage expenses of a girl child. Accordingly all the features of this scheme are designed. Also read the Sukanya Samriddhi Scheme amendments for further update on SSY account.
Features & Benefits of Sukanya Samriddhi Yojana
If you are a parent of a girl child then it is necessary for you to know the details of Sukanya Samriddhi Account in depth. This is going to be one of the best deposit schemes in coming years. Check out the major benefits of Sukanya Samriddhi Account.
- SSA account can be opened only in the name of the girl child.
- Parents or legal guardian can open this account on behalf of the girl child
- The account can be opened on birth of a girl child till the age of 10 years
- Minimum deposit is Rs 1000 and then in the multiples of 100
- Maximum deposit can be possible upto Rs 1.5 lakh per financial year
- There is no monthly recurring deposit required for this account. But if one forgets to pay the minimum yearly amount then he/she has to pay a penalty of Rs 50 only
- One can transfer this account to any part of India in case the girl child is shifting her city.
- The maturity period is 21 years from the opening of the account.
- The deposit period is also fixed and that is till 14 years from the start of the account.
- After deposit term ends there is no scope of further deposit. Amount will earn compounded interest every year till maturity.
- Amount can be deposited to the account by cash or demand draft. So far there is no online facility to transfer money.
- One can open Sukanya Samriddhi Account in any post office or any public sector bank. On opening of the account a passbook will be provided where all transaction details will be captured. Check out the list of banks to open Sukanya Samriddhi Account.
Other Sukanya Samriddhi Yojana Benefits
Tax Benefit on Sukanya Samriddhi Yojana
One question about this scheme is about the Sukanya Samriddhi Yojana benefits is whether the interest on Sukanya Samriddhi Yojana taxable or not. As per section 80C the amount deposited in in this scheme will be exempted for income tax benefit. So is the case of interest accumulated in the account. The Sukanya Samriddhi Account tax exemption rule has been recently changed and made it EEE to make this scheme more useful.
Interest Rate of SSA for 2016-17
Interest rate for the financial year 2014-15 is 9.1%, which has been increased to 9.2% for the FY 2015-16 This is the maximum among all savings schemes. Interest rate of Sukanya Samriddhi Account Yojana (SSA) for the financial year 2016-17 is reduced to 8.5%. The interest rate will be decided by the Govt. every quarter. Keep a track of this article to remain updated with the current rate of interest.
Sukanya Samriddhi Yojana Withdrawal, Premature Closure Rules
Premature withdrawal is possible only after 18 years. Withdrawal is allowed to meet the financial requirements of the account holder for the purpose of higher education and marriage. In case of Sukanya Samriddhi withdrawal, only 50% of amount accumulated can be withdrawn. Checkout the withdrawal & premature closure rules in detail.
So these are more or less the salient features of Sukanya Samriddhi Account. This Govt. scheme seems to be very beneficial for rural as well urban people. They can easily deposit small amount in this account and accumulate money for the education and marriage expenses of the girl child.