Sukanya Samriddhi Account Yojana (SSY) FAQ
SSY is one of the more noble financial security schemes launched in India for the girl child. It aims at improving the gender inequality in the country by providing security cover for the girl child as well as their parents under the ‘Beti Bachao Beti Padhao’ campaign.
The scheme is so popular that a lot of people are searching information on it and thus the below mentioned FAQs would serve quite helpful for you.
Tenure of Deposit and Maturity
You will have to deposit money in this account for 14 years from the date of opening this account. Account would automatically mature after 21 years from the date of opening. You can withdraw 50% of money for educational purpose after girl child completes 18 years. You can also this account at the time of your daughters marriage.
What is the age limit for opening the SSY?
Any girl who is under the age of 10 years is eligible to have a Account under her name. It is however a restriction that a girl can have only one account operating under her name.
What is the Buffer time?
Although the age limit is a maximum of 10 years, however, the government has provided a buffer duration of 1 year. This implies that girls who have attained the age of 10 years within 1 years prior to the launch of the scheme would also be covered under this Yojana and thus can apply for the account. This means that Girls who will be 11 years old before December 1 2015 can open Account. In other words Girls born before 2nd December 2003 are not eligible for SSA.
List of Post Offices and Authorized Banks in SSY?
A lot many financial analysts are comparing Sukanya Samriddhi Yojana to Public Provident Fund, which is quite true baring the fact that this scheme has a stronger social intention towards the girl child. Although, there is no list of banks disclosed by the government of India yet, however, it states that all post offices and commercial banks would be dealing in this account and we can thus assume that the below list of banks would offer this account.
- Bank of Baroda (BOB)
- ICICI (ICICI Bank PPF Account)
- Central Bank of India
- Union Bank of India
- Bank of India
- Vijaya Bank
- Allahabad Bank
- Bank of Maharashtra
- Oriental Bank of Commerce
- Axis Bank
- Punjab National Bank (PNB)
- Indian Overseas Bank (IOB)
- Dena Bank
- Indian Bank
- Corporation Bank
- Plus all State Banks
It is noteworthy here that HDFC Bank does not have the authorization to open PPF accounts and we thus are not sure whether it can offer Sukanya Samriddhi Account or not.
Along with the list of banks mentioned above, all Indian Post Office branches, big or small operating across India are authorized to open This account.
Taxation aspects in SSY
Any deposit or contributions that are made under the SSY are tax exempted under section 80C to a maximum limit of deposits to be up to 1.50 lakh. The limit however considers all other investments made under 80C like Public Provident Fund, LIC, Bank Fixed Deposits, etc.
The new budget makes this scheme a completely tax saving scheme by giving it a EEE (Exempt, Exempt, Exempt) status and thus not only the contributions would be tax exempted, but also the interest received on the deposit would be exempted from taxation under section 80C.
The entire motive of the scheme is to provide financial security and support for the parents and guardians of the girl child and hence this scheme has been given so much exemptions and flexibility. The social cause behind the SSY makes it an alluring investment and tax saving option for the parents of today.
Are Non Resident Indians (NRIs) also eligible for SSY?
Governed under the Post Office Savings Account Rules, Sukanya Samriddhi Yojana is a small saving scheme and according to Reserve Bank of India’s guidelines, any NRI would not be eligible to make any contributions and investment under small saving schemes and thus are NOT ELIGIBLE for Account.
What are the documents required for opening of SSY?
This is one of the simplest types of accounts ever and thus opening an account under Sukanya Samriddhi Scheme would require very basic documents and the process if quite simple and easy. Here is a list of documents that would be required to open Account:
- Certificate of Birth of the Girl Child
- Proof of Identity of the parent or legal guardian, whosoever is the depositor
- Address proof of the parent or legal guardian, whosoever is the depositor
Now Passport, Aadhar Card and Voter Id card will be accepted as Birth Proof of the girl child. http://www.indiapost.gov.in/dop/pdfbind.ashx?id=1637
Nominations: What in case of death of Girl child or the depositor in SSY?
In case of death of the depositor, i.e. the girl child:
- The account would get closed and deactivated, and
- The balance amount along with interest accrued would be refunded to the parent or legal guardian, whoever is the depositor
In condition of death of the parent (Father or Mother) or the legal guardian and if the family feels that there is no one else to make the deposits further, there could be two possibilities:
- The total amount along with interest accrued would be refunded to the girl child or her family, or
- The total balance amount may not be refunded, but kept in the account until the amount matures and no fresh contributions would be required. The balance left in the account would keep growing with interest and thus would in turn the girl child at the time or her higher studies or marriage.
The details of the above mentioned scenarios can be discussed by the authorized personnel at the branches dealing in this account.
Can an existing saving account be converted to SSY?
NO, an existing saving account cannot be converted to Account and thus the applicant would have to open up a fresh account altogether.
Premature Withdrawal of the amount in SSY?
Premature withdrawal of the amount is permissible only up to 50% of the total amount in case of higher education or marriage and that too only after the girl attains an age of 18 years.
Where to contact for opening of account under this SSY?
This scheme is available to all commercial banks and post offices and their branches, big or small, working throughout India.
Is SSY transferable?
The account is completely transferrable to any place in India where the girl moves. A proof of new residence may however be required for transferring the account.
Are there any commission agents or intermediaries allowed to deal in this SSY?
NO, this scheme is a direct walk in scheme and no commission agent or intermediary is allowed to deal in this kind of account.
We hope that with above information, we have been able to cater to your specific queries. However, if there is anything you want to know that is not covered above, please feel free to write to us. We would be glad to help you with accurate information.
Last date ?
As on now there is no Last date of SSA Yojana. I have listed this point in my FAQ as some of my readers were enquiring about this information. If you mean to say that what is the last date of SSA to avail tax benefits for a financial year then it is 31st march of every year.
Who can be the guardian of the girl child?
After the age of 10 years, the girl can herself operate the account. There could be two possible caretaker or depositor of the account for the minor child (below ten years of age).
- Either the mother or the father can be guardian of the account, or
- When none of the parents are alive or are incapable of maintain the account, anyone entitled under the law of taking care of the girl child can deposit and operate the account, till the girl is a minor.
How many accounts can be opened?
One Girl One Account: The scheme prohibits multiple accounts under the name of the same girl child. A girl child can have only one account under her name.
Maximum Number of Girl Children from a parent
A maximum of two girl child can be included in this scheme, in which the parents or the legal guardian can open two separate accounts for both the girl child.
Condition for the account of Third Girl Child
In addition to the above mentioned restrictions, parents or guardians can have an account opened under the third girl child in following cases:
- If the second birth of the parents are twin girl children after the first girl child
- If the first birth of the parents are three girl children.
These conditions for opening account of the third girl child would only be applicable after furnishing required certificate from competent authorities where the girl children are born.
Rate of Interest
As per the scheme, the rate of interest as of now is 9.2% per annum for the FY 2015-16 initially it was 9.1%. However, the rate would vary every year depending on the current year’s budget and the market performance. Above all, the way this scheme has started, we are quite sure that the rate for any given year would be much above other saving scheme.
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What are the minimum and maximum deposit limits?
To open the SSA, an initial deposit of Rs 1,000 would be required. Thereafter, any amount in the multiple of Rs 1,000 can be deposited to the account up to a maximum of Rs 1,50,000 in a given financial year. So, to be precise:
The Minimum amount required per year is Rs 1,000
The Maximum amount per year could be Rs 1,50,000
The Duration and Mode of Deposit
The duration of the deposits
SSA is fourteen year after its activation. However, the proceeds would get matured only after 21 years or at the time of girl child’s marriage, whichever is earlier.
In case, the deposits are less than Rs 1,000 in a given financial year, a fine or penalty of Rs 50 would be deducted on a per year basis. This rule would apply till the account gets fourteen years old.
Modes of Deposit
Deposits in SSA have to be necessarily made either in cash or through cheque or demand draft. In case the deposits are done through demand draft or cheque, the date of credit to the account would be the day when the DD or Cheque is cleared.
Pass book facility in in SSY?
Under the scheme, the account holder would be given a passbook to keep a track of the transactions. Moreover, this passbook would carry account holder’s specific information line name, address, account number and date of birth.
This passbook will serve as a reference for the depositor as well as bank or post office at the time of depositing money or in case of any possible disputes. It would have to be furnished to the concerned officials at the time of closure of the account.
Benefits And Advantages
Sukanya Samriddhi Account Yojana is a premier scheme which is providing the highest rate of interest to its investors. Moreover, any money that you pool in towards the account would be fully exempted from income tax under 80C.
Moreover, the maturity proceeds would directly go to the girl child. This way, the accumulated amount would not be used for any other purpose by the parents or guardians. sukanya samriddhi account ensures that the future of girl child is secured.
Anyone desirous of continuing the account even after maturity can get the term of account extended as per their wish. The account would keep getting the same rate of interest, even after extension.
sukanya samriddhi Yojana offers a lot of flexibility in terms of deposits. You can deposit any amount of money whenever you have it, with no restriction on the number of times you can deposit money. Last but not the least; the account can be transferred to any other location in India.
Drawbacks or Cons
One of the major drawbacks of the scheme that many people would see is there is no fixed rate of interest. It would keep changing regularly. The lock in period of the account is high too for many short term investors.
Moreover, those who have more than two daughters would not be able to open account for all of their daughters as the maximum number of girl child covered under this scheme per parents is just two.
Also, there is no online facility associated with the scheme so far. This would discourage a lot of tech savvy parents to open an account.
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