Salient features of Sukanya Samriddhi Account---Who can open and how?

Sukanya Samriddhi Deposit Account Scheme has been introduced vide Government of India Notification No. G.S.R.863(E) dated December 02, 2014 and circulated to Banks by Reserve Bank of India vide their letter No.RBI/2014-15/494/IDMD(DGBA).CDD/No.4052/15.02.006/2014-15 dated 11th March 2015. The accounts under this scheme can be opened at any post office in India doing savings bank work and authorised to open an account under the scheme or at any branch of a commercial bank authorised by the Central Government to open an account under the scheme.

Flash :- The government has revised interest rates payable on Sukanya Samriddhi Deposit as 8.5% from 8.1% w.e.f. 01.10.2018.

Salient features of Sukanya Samriddhi Account

• Objective: To promote the welfare of Girl Child and behind this initiative is to address the Gender imbalance and create a positive environment in favour of Girl Child. Sukanya Samriddhi account is launched with a social message is that Marriage or Education of a Girl Child is not a financial burden if parents plan well in advance.
• Who can open the account:
  A natural/ legal guardian on behalf of a girl child in the name of a girl child from the birth of the girl child till she attains the age of ten years and any girl child, who had attained the age of ten years, one year prior to the date of commencement of the scheme i.e. 2nd December 2014.
• Documents Required :
  Birth certificate of the girl child in whose name the account is opened and with Address proof and Identity proof of A natural/ legal guardian.
• Term Period :
  Deposits can be made till completion of fourteen years from the date of opening of the account. The maturity of the account is 21 years from the date of opening of account or if the girl gets married before completion of such 21 years, the operation in the account shall not be permitted beyond the date of her marriage. In other words No Deposit for the period from 15th to 21st Year of account.
• Maximum number of accounts:
  Upto two girl children or three in case of twin girls as second birth or the first birth itself results in three girl children
• Minimum and Maximum Amount of Deposit:
  Min.1000 of initial deposit with multiple of one hundred rupees thereafter with annual ceiling of Rs.150000 in a financial year Tenure of the Deposit: 21 years from the date of opening of the account
• Flexibility to operate Sukanya Samriddhi:
  (a) Account (1) The account shall be opened and operated by the natural or legal guardian of a girl child till the girl child in whose name the account has been opened, attains the age of ten years.
  (b) On attaining age of 10 years, a girl child can operate her account
• Maximum period upto which deposits can be made:
  14 years from the date of opening of the account
• Interest on Deposit:
  As notified by the GOI, compounded annually with option for monthly interest pay-outs to be calculated on balance in completed thousands.
  Interest rate For FY 2014-15 fixed at 9.1%
  Interest rate For FY 15-16 fixed at 9.20%
  Interest rate revised w.e.f 01.04.2016 is 8.6%
  Interest rate revised w.e.f. 01.10.2016 is 8.5%
  Interest rate revised w.e.f. 01.04.2017 is 8.4%
  Interest rate revised w.e.f. 01.07.2017 is 8.3%
  Interest rate revised w.e.f. 01.01.2018 is 8.1%
  Interest rate revised w.e.f. 01.10.2018 is 8.5%
• Tax Rebate:
  A contribution of up to Rs 1.5 lakh under Sukanya Samriddhi scheme qualifies for income tax deduction under Section 80C of Income Tax Act. Also, interest income and maturity amount would be tax-free, making Sukanya Samriddhi scheme similar to public provident fund (PPF) in terms of tax aspects.
• Premature Closure:
  Allowed in the event of death of the depositor or in cases of extreme compassionate grounds such as medical support in life threatening diseases to be authorized by an order by the Central Government
• Irregular Payment/ Revival of account:
  By payment of penalty of Rs.50 per year alongwith the minimum specified amount per year
• Mode of Deposit:
  Cash/Cheque/ Demand Draft
• Withdrawal :
  50% of the balance lying in the account as at the end of previous financial year for the purpose of higher education, marriage after attaining the age of 18 years.

Sukanya Samriddhi Account Comparison With PPF:

	Public provident fund (PPF)	Sukanya Samriddhi Account
Loan Facility	A loan facility is available from the third financial year of opening the PPF account	There is no such facility
Partial Withdrawal	Partial withdrawal is permissible every year from the seventh financial year of opening the account. Please Click Here for more details of PPF scheme.	Up to 50 per cent of the accumulated amount can be withdrawn only after the account holder turns 18 while full withdrawal is possible after she turns 21.