Sukanya Samriddhi Account Interest @ 9.2 % in Financial Year 2015-2016: The Government of India launched “Beti Bachao, Beti Padhao” (Save Girl Child, Educate Girl child) as a National mission towards women empowerment and financial security of girl child. As part of the mission, a savings scheme called “Sukanya Samriddhi” has been introduced.
Among the long term investments, this is certainly the best in class with attractive returns. Sukanya Samriddhi Scheme is a small savings scheme launched in January 2015 and it is aimed at encouraging savings for a girl child’s education and marriage.
A new account exclusively for the Girl Child from 0 to 10 years of age, One year grace for the present year, a girl child Born on or after 2.12.2003 is also eligible. The Sukanya Samriddhi scheme will earn a higher interest rate of 9.2 percent interest (yearly compounded) in the financial year 2015-16 (April to March). In Financial Year 2014-2015, the Sukanya Samriddhi scheme earned an interest of 9.1 percent.
Important points to be remembered:
1. The account can be opened in any Post Office by furnishing a birth certificate of a girl child along with KYC documents.
2. Parent/Guardian can Open only one account in the name of one girl child and a maximum of two accounts in the names of two different girl children.
3. Account fetches the highest rate of annual interest which is compounded annually, interest for the financial year 2014 -2015.
4. The minimum amount required to open the account is Rs.1000/- and subsequent deposits in multiples of Rs.100/- Minimum deposit is Rs.1,000/- and Maximum deposit up to Rs.1,50,000/- can be made in a financial year.
5. The account shall mature on completion of 21 years from the date of opening of the account. If the account is not closed on Maturity, interest shall be payable on the balance in the account till the closure of the account.
6. Withdrawal of 50% of the balance at credit at the end of preceding financial is allowed for the purpose of higher education or marriage of the account holder girl when she attains the age of 18 years.
7. Normal premature closure is allowed after the marriage of a girl, on attaining the age of 18 years.
Income Tax exemption for all Deposit and Withdrawal.
|S.No||Monthly Deposit(In Rupees)||Yearly Contribution(In Rupees)||Total Contribution For 14 Years(In Rupees)||Maturity Value After 21 Year(In Rupees)|
|1000||12X1000 = 12000/-||168000||607128|
|2500||12X2500 = 30000/-||420000||1517820|
|5000||12X5000 = 60000/-||840000||3035640|
|7500||12X7500 = 90000/-||1260000||4553460|
|10000||12X10000 = 120000/-||1680000||6071280|
|12500||12X12500 = 150000/-||2100000||7589103|
Opening of Account:
A Sukanya Samriddhi Account can be opened by the guardian in the name of a girl child till she attains the age of ten years. However, this year a one-year grace period has been given. Under this scheme, an account for a girl child can be opened who is born between December 2, 2003, and December 1, 2004. This relaxation on account opening is applicable only is till December 1, 2015.
However, only one account is allowed per girl child. Parents can open this account for a maximum of two children. In the case of twins or triplets, this facility will be extended to the third child. The account can be opened in post offices or authorized bank branches. Sukanya Samriddhi Account Interest @ 9.2 %
Operation of Account:
The account will be operated by the guardian of a girl child till the girl child, in whose name the account has been opened, attains the age of 10 years. On attaining the age of 10 years, the girl child may herself operate the account.
The account may be opened with an initial deposit of Rs 1,000 and thereafter any amount in multiples of Rs 100 can be deposited. The minimum deposit for a financial year is Rs 1,000 and maximum Rs 1.5 lakh. There is no limit on a number of deposits either in a month or in a financial year. So, Minimum Contribution is Rs.1000/- and Maximum contribution is Rs.1,50,000/-.
Income Tax exemption:
A contribution of up to Rs 1.5 lakh under the 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 the public provident fund (PPF) in terms of tax aspects.
Interest Rate on SSA:
For the coming the financial year 2015-16, the government would be paying 9.2 percent interest on the Sukanya Samriddhi scheme(This interest rate has been declared recently), higher than the 8.7 percent announced for PPF accounts. The government will every year declare the interest rate of small savings schemes like the Sukanya Samriddhi scheme and PPF. In this Financial Year 2014-2015, Sukanya Samriddhi scheme earned 9.1 percent as compared to 8.7 percent for PPF.
In Public provident fund (PPF), partial withdrawal is permissible every year from the seventh financial year of opening the account. In the case of Sukanya Samriddhi’s account, up to 50 percent of the accumulated amount can be withdrawn only after the account holder turns 18 while full withdrawal is possible after she turns 21. So, Premature withdrawal allowed up to 50% for the girl’s higher education and marriage after she attains 18 years of age. In PPF, No premature withdrawal is allowed except in case of the death of the account holder.
A loan facility is available from the third financial year of opening the PPF account. In the Sukanya Samriddhi account, there is no such facility. So, No loan can be taken on the SSA Balance.
Up to 50 % of the accumulated amount can be withdrawn after the account holder turns 18.
The account can be closed after the girl child in whose name the account was opened completes the age of 21. If the account is not closed after maturity, the balance will continue to earn interest as specified for the scheme from time to time. No tax will be levied on the SSA Balance.
Transferability and penalty:
The account may be transferred anywhere in India. An account where the minimum amount has not been deposited in a particular year will attract a fine of Rs 50 per year. Source: India Post Official Posters.