Sukanya Samriddi Scheme is a small savings scheme launched for girl children. It helps to build a healthy corpus for the future education and marriage of the daughters. With the change in time, the cost of living and education is rising significantly.
Earlier, parents use to rely on bank fixed deposits (FDs) to save money for their children's education.
Earlier, parents use to rely on bank fixed deposits (FDs) to save money for their children's education.
Now parents invest as well as save to fund their daughter's education. With investing in Sukanya Samriddhi Account, the parents or the legal guardians of the girl child can claim the income tax deduction. This scheme was launched with an objective to promote the welfare of the girl child.
SBI Sukanya Samriddhi Account latest interest rates, benefits
A natural or legal guardian on behalf of a girl child is eligible to open this account for their daughter till she attains the age of 10 years. According to the State Bank of India's (SBI) official website, www.sbi.co.in- "The maximum accounts that can be opened for up to two girl children or three in case of twin girls as second birth or the first birth itself results in three girl children."
The account with SBI can be opened with a minimum amount of Rs 1,000 as an initial deposit with multiple of one hundred rupees thereafter with an annual ceiling of Rs 1,50,000 in a fiscal. The tenure of the deposit is 21 years from the date of opening of the account. However, it may be noted that the maximum period up to which deposits can be made is 15 years from the date of opening of the account.
Sukanya Samriddhi Account fetches a lower rate of interest at 8.4 per cent, down by 0.1 per cent, respectively, from the previous rate of 8.5 per cent. “On the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis,” the Finance Ministry said in a statement while updating the rates on small savings scheme for July-September quarter of the financial year 2019-20.
Under Section 80C of the Income-Tax Act, 1961, no tax is levied on the amount invested, the amount earned as interest and amount withdrawn. Premature closure of Sukanya Samriddhi account is allowed in the event of the 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.
The account can be revived by making a payment of penalty of Rs 50 per year along with the minimum specified amount per year. However, as per the withdrawal rules, the 50 per cent of the balance lying in the account as at the end of the previous financial year for the purpose of higher education, marriage after attaining the age of 18 years.
