Worried about saving funds to support your girl child’s higher education or her marriage expenses? The Sukanya Samriddhi Yojana by the government is meant exclusively for the girl child. The scheme comes with a host of benefits, including higher interest rate along with income tax benefits under Section 80C for up to Rs 1.5 lakh.
Any biological parent or legal guardian can open the account till the child attains 10 years of age. The account can be opened only in the name of the girl child at any post office or in some specifically designated banks like the State Bank of India. It is not necessary to hold a savings account in the bank in which SSY account is sought. Money in the account can be deposited by cash, cheque, DD or online transfer.
A depositor/parent is permitted to open only two accounts for up to two girl child. However, exception is made in case of twins/triplets, where third account is permitted.
The SSY account offers an interest rate of 7.6 percent (revised quarterly), much higher compared to other small saving schemes. One can open the account with a minimum of Rs 250 and deposit up to Rs 1.5 lakh in a financial year. There is no cap on the number of transactions made in a month or through the year, making SSY a convenient saving option.
If the account holder fails to make the minimum deposit in a financial year, then the account is termed as a default account and can be renewed after paying a fine of Rs 50. If not, then the deposited amount will continue to earn interest till maturity.
A parent has to maintain the deposits for 15 years from the date of opening the account. It matures on completion of 21 years or till the marriage of the girl after she turns 18 years. The amount and interest accumulated is paid to the girl child on providing application and documents.