Minimum deposit for Sukanya Samriddhi account has changed

An important intervention and helps further the government’s Beti Bachao-Beti Padhao Campaign. The minimum deposit for government-backed small savings scheme for the girl child, Sukanya Samriddhi, has been slashed to Rs 250 from Rs 1,000. This means that customers need to make a minimum annual deposit of only Rs 250 in this account, reported news agency Press Trust of India. The maximum yearly deposit, however, stands unchanged at Rs 1,50,000. Under the Sukanya Samriddhi Yojana, a parent or legal guardian can open the account in the name of the girl child until she attains the age of 10 years.

Here are some facts you should know about Sukanya Samriddhi Scheme:

“The most recent modifications to the Sukanya Samriddhi Account Rules, 2016 is a welcome step. The change would foster financial inclusion of parents, especially the rural poor who want to secure the future of their daughters but have limited funds. This positive initiative is an important intervention and helps further the government’s Beti Bachao-Beti Padhao Campaign,” said Rahul Aggarwal, Director, Wealth Discovery.

The interest rate on Sukanya Samriddhi Yojana has been fixed at 8.1 per cent per annum for the September quarter.The interest on Sukanya Samriddhi Yojana is calculated on a yearly basis and is compounded annually.

The banks that have been authorized to open accounts under the scheme are: State Bank of India (SBI), Vijaya Bank, United Bank of India, Union Bank of India, UCO Bank, Syndicate Bank, Punjab National Bank, Punjab & Sind Bank, Oriental Bank of Commerce, Indian Overseas Bank, Indian Bank, IDBI Bank, ICICI Bank, Dena Bank, Corporation Bank, Central Bank of India, Canara Bank, Bank of Maharashtra, Bank of India, Bank of Baroda, Axis Bank, Andhra Bank and Allahabad Bank, according to a government notification.

Tax exemption is one of the greatest advantages of the Sukanya Samriddhi Scheme. The deposits made to the account, and also the proceeds and maturity amount would be fully exempted from tax under section 80C of the Income Tax Act.

Sukanya Samriddhi account will also automatically close if the girl child gets married before the completion of the tenure of 21 years. Deposits can be made up to 14 years from the date of opening of the account. After this period the account will only earn interest as per applicable rates.

Withdrawing money before the completion of the maturity period of 21 years can only be made by the girl child in whose name the account has been opened after she attains the age of 18 years. This withdrawal will also be limited to 50 per cent of the balance standing at the end of the preceding financial year, and will only be allowed for the purpose of higher education or if the girl intends to get married. In order to make a withdrawal, the account should have a deposit of at least 14 years or more.