Analysis Of Sukanya Samriddhi Savings Account

By Author: Ross Barkely
Total Articles: 39
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This long term savings plan which aims to provide wealth in two stages, viz at the time of higher education of girl children and at the time of their marriage.

Sukanya Samriddhi Savings Account carries interest rate of 9.1 per cent.

It is an Exempt, Exempt, Exempt Scheme as far as Income Taxes is concerned i.e Investments in Sukanya Samriddhi Savings Account is eligible for Income Tax Exemption in the form of Deduction under Section 80C of IT Act.

Secondly, curiosity earned under this scheme is exempt from Income Tax fully. And Finally, Wealth developed in Sukanya Samriddhi Savings Account when it is paid at the time maturity is also fully exempted from Income Tax.

This scheme has got following positive aspects

Higher interest rate compared to PPF,
Income tax exemption benefits,
Flexibility in the scheme susch like deposits can be made any number of time with minimum of deposit in one time as low as Rs. 100 (Maximum restriction Rs. 1.5 lakh in a year)
Account can be transferred any where in India

Details of Sukanya Samriddhi Saving Account

Rate of interest 9.1% ...
... Per Annum(2014-15),calculated on yearly basis ,Yearly compounded. Interest Rate will be declared annually.

Minimum INR. 1000/- and Maximum INR. 1,50,000/- in a financial 12 months. Subsequent deposit in multiple of INR 100/- Deposits can be made in lump-sum No restriction on number of deposits either in a month or in a Financial year

A legal Guardian/Natural Guardian who is the depositor, can open account in the name of Girl Child by producing Birth certificate of a girl child in whose name the account is opened, address proof and identity proof.

A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different Girl children.

Account can be opened up to age of 10 years only from the date of birth. For initial operations of Scheme, one year grace has been given. With the grace, Girl child who is born between 2.12.2003 &1.12.2004 can open account up to1.12.2015.

If minimum Rs 1000/- is not deposited in a financial year, account will become discontinued and can be revived with a penalty of Rs 50/- per year with minimum amount required for deposit for that year.

Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.

Account can be closed after completion of 21 years.

If account is not closed after maturity, balance shall continue to earn interest like specified for the scheme from time to time.
Normal Premature closer shall be allowed after completion of 18 years /provided that girl is married.
Pre-Mature Withdrawal - To meet the financial requirements of the account holder for the purpose of higher education and marriage withdrawal up to 50% of the balance at the credit. However, such withdrawal shall be allowed only when the account holder girl child attains the age of eighteen years.

Closure on maturity or before maturity due to Marriage of Account Holder- On completion of twenty-one years from the date of opening account can be closed by paying the matured amount to the account holder (Femal Child). In the case of marriage of account holder prior to maturity of account and after attaing 18 years of age, this saving account should be closed. Matured amount in this full case will be paid to account holder after production necessary age declaration.

Check this Sukanya Samriddhi Account Calculator and Sukanya Samriddhi Yojana Form.