homepersonal finance NewsInternational Day of Girl Child 2022: How investing in 'Sukanya Samriddhi Yojana' can help your daughter

International Day of Girl Child 2022: How investing in 'Sukanya Samriddhi Yojana' can help your daughter

The parents or legal guardians of a girl aged up to ten years can open a Sukanya Samriddhi Yojana account in the name of the girl child in designated branches of public-sector banks or in a post office. Here's all you need to know about it

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By Anshul  Oct 11, 2022 2:43:00 PM IST (Published)

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International Day of Girl Child 2022: How investing in 'Sukanya Samriddhi Yojana' can help your daughter
International Day of Girl Child is observed on October 11 to raise awareness about the gender inequality that girls face worldwide. When we talk about women's empowerment, it's important to address the need for financial independence too. And this independence can come only your girl child has some investment in place from the very beginning.

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Sukanya Samriddhi Yojana could be one investment plan that you could think of for your girl child so that you can build a decent fund upon maturity of the scheme.
Sukanya Samriddhi Yojana is one of the savings schemes offered by India Post. Interest rates applicable to it are reviewed every quarter. Currently, interest at the rate of 7.6 percent is available on the investment in the Sukanya Samriddhi Account (SSA) at designated post office branches.
Here are key things to know about the Post Office Sukanya Samriddhi scheme:
Eligibility
A guardian can open only one account in the name of one girl child and a maximum of two accounts in the name of two different girl children.
An account can be opened up to the age of 10 years only from the date of birth, according to India Post.
The online deposit facility is available through intra-operable net banking and an India Post savings account.
Operation of account
Account will be operated by the guardian till the girl child attains the age of majority (i.e. 18 years).
Investment Limits
Customers can set up a Sukanya Samriddhi account at a minimum investment of Rs 250 and a maximum of Rs 1,50,000 per financial year. The subsequent deposits in the account can be made in multiples of Rs 50. However, there is no limit on the number of deposits either in a month or in a financial year.
Deposits may be made in the account till the completion of a period of fifteen years from the date of opening of the account.
Penalty Charges For Non-Deposit
If a minimum of Rs 25​0 is not deposited in a financial year, the account will become discontinued and can be revived with a penalty of Rs 50 per year with a minimum amount required for deposit for that year.
Maturity
SSA can be closed after the completion of 21 years or at the time of marriage of the girl child after attaining the age of 18 years (1 month before or three months after the date of marriage).
Interest calculation
The interest will be calculated for the calendar month on the lowest balance in the account between the close of the fifth day and the end of the month. Interest will be credited to the account at the end of each Financial year.
Interest earned will be tax-free under Income Tax Act.
Withdrawal
This can be done from the account after the girl child turns 18 or passes the 10th standard. Withdrawal may be taken up to 50 percent of the balance available at the end of the preceding F.Y.
It may be made in one lump sum or instalments, not exceeding one per year, for a maximum of five years, subject to the ceiling specified and subject to the actual requirement of fee/other charges.
Premature closure
Account may be prematurely closed after five years of account opening on the following conditions:
  • On the death of the account holder. (from date of death to date of payment, PO Savings Account interest rate will be applicable).
  • On extreme compassionate grounds.
  • A life-threatening disease of a/c holder.
  • Death of the guardian by whom the account operated.
  • Complete documentation and application are required for such closure.
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