Sukanya Samriddhi Yojana interest rate is raised to 8% from 7.6% for this April-June quarter.
SSY tax benefits
With a sovereign guarantee and the exempt-exempt-exempt (EEE) status, SSY offers a significant tax-free return. The annual contribution (contributions) is eligible for a Section 80C deduction, and the maturity benefits are tax-free. Note that the maximum investment limit is Rs 1,50,000.
Also read: Post Office Schemes latest Interest Rates in India for 2023
What is the limit for opening for Sukanya Samriddhi
Two accounts can only be opened for two girl children by the natural or legal guardian. If a girl is born as a twin, as a second child, or if the first birth results in three girl children, the third account can be opened in her name. According to the SBI website, “Upto two girl children or three in case of twin girls as second birth or the first birth itself results in three girl children.”
What documents are required for opening SSY account
The following documents are required:
- SSY Account Opening form
- Birth Certificate of the girl child, having the child’s name on it
- Photograph of the parent/ legal guardian of the girl child
- KYC Documents (Identity & Address Proof) of the parent/ guardian.
Sukanya Samriddhi Yojana details
The minimum and maximum deposit amounts are Rs 250 and Rs 1,50,000, respectively, per fiscal year. If the customer fails to deposit the required minimum deposit of Rs. 250 within a financial year, a penalty of Rs. 50 will be imposed. After the penalty has been paid, the account may be reactivated. The SSY account’s term lasts for 21 years from the account’s opening date, or until the account holder marries, whichever comes first.
SSY premature closure details
Account may be prematurely closed after 5 years of account opening on the following conditions : –
-> On the death of an account holder. (from date of death to date of payment PO Savings Account interest rate will be applicable).
-> On extreme compassionate grounds
(i) Life threatening decease of a/c holder.
(ii) Death of the guardian by whom account operated.
(iii) Complete documentation and application required for such closure.
(vi) For premature closure of account submit prescribed application form along with pass book at concerned Post Office.
After a girl child turns 18 or has completed the 10th grade, withdrawals can be made from the account.
Withdrawals are permitted up to 50% of the balance that was available at the conclusion of the last F.Y.
Withdrawals may be made in full or in a maximum of five equal payments, up to the stipulated ceiling and subject to the real necessity of fee/other costs.